Working With Real Estate Agents: Common Myths

You've probably heard many stories - good and bad - about real estate agents. What's fact and what's fiction? Before you write agents off completely, follow these tips.

I have heard SO many myths about working with real estate agents. What’s the biggest myth you’ve heard? For me, I always hear that real estate agents aren’t helpful with finding a home and that they are only in it for the money. I hear others say that the agents make you sign contracts that are impossible to get out of. I know for a fact though, that it is not true. Both of the previous answers are myths, the truth is that working with a real estate can be very helpful and rewarding, especially for a first time home-buyer.

Before you completely write off real estate agents, consider the following:

Myth No.1 — I can only get the best deal on the house I want by calling the agent on the For Sale sign…

Truth is, that agent is contractually bound to represent the seller and get the best deal, for the seller. It’s ok to work with that agent in a fair and professional manner, however don’t give away too much confidential information to the agent.

Bottom Line:

If you tell an agent representing a seller the highest amount you are willing to pay, they are obligated to pass that information onto the seller themselves. Take time to research and learn about the duties and loyalties of real estate agents prior to looking for your home.

Myth No.2 — I was told by my agent that I had to sign a Buyers Agency agreement before we could work together. I signed the agreement and now I find myself unhappy with the relationship.

Some people are a good match and hit it off on the first meeting, but what happens if you don’t or are unsure? If you are not comfortable about signing an agency agreement when the agent asks, then consider the following:

• Ask the agent to work under a verbal buyer agency agreement for a short time. Some states allow this, giving you time to become familiar with the agent before you sign a formal agreement.

• Ask the agent to write a buyer agency agreement that covers a very short period, such as a day or a week.

• Find out if the agent can offer a non-exclusive buyer agency agreement. The agent would be your buyer's agent, but you would not be tied exclusively to her.

Bottom Line:

If the agent will only work with you if you immediately sign a lengthy buyer agency agreement, you may be better off seeking another agent.

Myth No.3 — I can find more homes for sale by calling more than one agent.

Possibly, but that is not always true. If you’re home shopping in a specific area, and the agencies belong to Multiple Listing Services, it means they all have access to the same properties.

Ask agents what areas they cover. Small-town agents may work a multi-county area. Agents in a city may restrict themselves to certain neighborhoods or subdivisions.

Bottom Line:

Researching and showing properties is time-consuming, so you'll get better service if you find an agent you like (within a given area) and stick with that agent.

Myth No.4 — The agent with the most listings in town is the best agent to call.

Think about that. If an agent has that many listings to deal with, how much time do they have for buyers, especially buyers who may want to look at properties other than theirs?

Bottom Line:

A brand new (competent) agent can be every bit as effective as a seasoned pro. Someone working with fewer clients will have your needs in mind constantly. Hire the person, not a lineup of listings.