
The majority of the population view real estate agents as unreliable, unnecessary, and a waste of money. There are many websites and books that outline "warnings” to be aware of when considering hiring a real estate agent. Although these sources may have the general public's best interest in mind, most of these warnings are often unwarrented. Some of the most common misconceptions about real estate agents are:
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Real estate agents make more money if the client pays more for a house
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Home buyers can demand to be shown homes
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Real estate agents can be given favours from lenders or inspectors
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The home inspector works to benefit the agent, not the client
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Real estate agents are required to tell clients about the neighbourhood make-up.
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Real estate agents will lie if it will close a deal
Many think that if a client pays more for a house, the real estate agent will make more money and, therefore, the agent doesn't really try to establish the best deal for the client. If one agent closes a deal for 300,000 dollars, and another agent closes a deal for 310,000, the second agent only makes 150 dollars more than the first agent, despite the 10,000 dollar difference in the price of the house the agents' difference in commission is really quite small.
Some individuals believe that they can simply call up any local real estate company and be shown homes by any agent. In order to have an agent working to buy or sell a home, there must be a signed contract even if the agent is working for the home seller.
It is against the law for real estate agents to accept favours from real estate vendors like lenders or inspectors. While this varies depending on location, most cities do not allow favours like discounts, money, gifts, and so on.
A professional real estate agent and the agent's home inspector will not keep any information of a home from the clients. This is because a professional agent will not risk their reputation, or the likelihood of being sued.
For the most part, many would assume that real estate agents are required to tell potential buyers important information about the neighbourhood such as crime rates, school statistics, ethnic or religious classes, and so on. This surprisingly, is not true. Many cities have developed laws that work against tenant discrimination and advocate fair housing. Therefore, if a real estate agent does not share information such as crime statistics for a neighbourhood — the agent is still considered to have conducted their job in a fair manner.