The 5 Most Popular Myths About REALTORS® Debunked
Real estate is one of those areas where everyone who’s bought or sold a home once (or knows someone who did) thinks they’re an expert.
It all leads to some pretty hilarious, completely incorrect, and sometimes frustrating misconceptions about what REALTORS® actually do (and how they do it).
You know what we’re talking about.
In today’s blog post, we’d like to introduce the five most popular myths about real estate agents.
1. “All REALTORS® Make a Ton of Money”
This very popular myth just refuses to die.
It’s not hard to see where the money myth comes from.
Someone knows someone whose home sold for a lot of money. They do the math on what the real estate agent’s commission must’ve been, and boom! They now assume that every agent in town is making $60,000 on every sale.
Sure, there are agents who are making millions every year. And if you’re one of them, that’s awesome.
But the reality is that most agents are making far less. It’s hard to find an official average salary for Canadian REALTORS®, but estimates generally start at about $60,000, with higher earners breaking the six-figure mark.
Good money? Yes!
But it’s a far cry from the millions most people think we’ve got laying around in the bank.
2. “REALTORS® Aren’t Really Necessary”
“Why not just sell your house yourself?” says Uncle Bob to his niece, when he hears she’s meeting with real estate agents. “It’s easy. Who needs a real estate agent?”
Uhh, most people, Uncle Bob.
People love to talk about how “homes sell themselves” and how, thanks to YouTube tutorials and Kijiji, “anyone can sell a house.”
And sure, it’s very much possible for someone who has the time, patience, expertise, and resources to do it.
But most people don’t.
REALTORS® have years of hard-won market experience that helps them strategically price, market and sell a home.
They deal with annoying house-hunters, badgering buyers’ agents, back-and-forth phone calls and emails, and a mountain of paperwork. All that leads to a higher selling price for the homeowner.
And if that isn’t convincing enough, hit skeptics with these other reasons why most sellers still choose to work with a real estate agent.
3. “REALTORS®’ Services Are Free For Buyers”
When someone hires a real estate agent to help them buy a home, they don’t fork over a flat fee.
At the end of the transaction, a percentage of the sale (the commission fee) is split between the buying and selling REALTORS®.
The commission technically comes from the seller, but buyers need to remember something: they’re paying for a real estate agent’s services through the price of the home that they purchase.
4. “REALTORS® Will Say Anything to Close the Deal”
Who’s the real estate agent whose bad behaviour convinced everyone that REALTORS® will do and say anything to close a sale and collect their commission?
We’re still paying for that guy’s conduct.
Like in every industry, there are real estate agents who will embellish or withhold the truth so that sellers will sell and buyers will buy.
But those agents are the exception, not the rule.
A real estate agent’s success is based on their reputation, and their reputation is based on their ability to deliver excellent service to buyers and sellers.
Lying about whether there are offers on the table, or exaggerating wildly about a home’s worth isn’t in the best interests of good, professional agents.
5. “All REALTORS® Are Identical”
“If you’ve met one, you’ve met ‘em all.”
Actually, like how lawyers, chefs, and surgeons can have unique roles within their respective industries, so too, can real estate agents.
REALTORS® have different approaches and strategies, different ways of working, and different areas of expertise. They also have different levels and kinds of experience.
All of these factors influence the way a REALTOR® works with a client. This means that the experience of working with one real estate agent could be completely different than the experience of working with another.
The assumption that all real estate agents are the very same has consequences for those looking to hire an agent.
Without taking the time to find an agent who suits their specific needs and preferences, they could wind up with a poor match, or worse, an ineffective REALTOR®.
What’s the funniest myth you’ve ever heard about real estate agents?