1) The agent with the most listings in town is the best agent to call.

False. Think about that. If an agent has that many listings to deal with, how much time do they have for each individual customer? Many top agents are turning to team systems, so time might not be an issue, but it's something to ask about when you interview an agent. 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.

2) The More You Pay for a House, The More an Agent Makes

False. Ever hear a friend say this: "Every dime more you pay for that house makes the agent more money, so don't trust that agent." That's a misunderstanding. The difference between $300,000 and $310,000 is about $150 to an agent. Do you really think the agent pays any attention to the commission difference of a $10,000 spread?

3) The Less Commission You Pay to Sell, The More you Make

False. Discount brokers like to propel this myth. They claim to save sellers money by charging less. The truth is agents who are top producers and excel in this business do not discount services. Why? Because they don't have to. Less-than-full-service agents can't afford all the bells & whistles paid for by full service agents, who tend to draw higher offers. It boils down to you get what you pay for. A 2% commission reduction doesn't amount to much when your price is discounted 10% or more because your agent couldn't afford full market exposure.

4) You should select the agent who says they can sell your home for the highest price.

False. Real Estate Agents do not set the price for your home; the market does. Overpricing a listing is one of the oldest tricks in the book. Sweet talk the seller by telling them that they have the best home in the neighborhood so they list with you. Than 30 days later ask for a price reduction because the home is not selling. Often times this is referred to as “buying a listing” and it goes against our REALTOR code of ethics. Hire an agent based upon his or her qualifications and marketing plans to sell your home. Never hire an agent based solely upon his or her price recommendation.

5) Agents Get Kickbacks from Lenders / Title / Inspectors

False. Since 1974, agents have been prevented from receiving any kind of kickback or favor from real estate vendors. It's against the law. It's against RESPA: the Real Estate Settlement Procedures Act. Some agents are slower than others to realize how the law affects them, but most have heard of RESPA and would not jeopardize their license, regardless of the temptation.

 

6) An Agent's Home Inspector Will Always Favor the Agent

False. Any agent worth his or her salt wants disclosure. Why? Because they wants what is best for their client but also, and this is not to be taken lightly, because they does not want to be sued. Agents must disclose material facts. A buyer is always, without fail, better off knowing the truth about a house. Good agents care that a buyer receives full disclosure and are willing to fight for repairs on the buyer's behalf or help the buyer cancel the transaction.

 

7) All Real Estate Agents Make Too Much Money

False. An agent's average annual salary is less than $36,000 a year. You will find that about half the agents in any large brokerage close less than four deals a year. Nobody can live on that. Not once office fees are paid, MLS fees and lockbox fees are deducted, overhead and expenses for the agent are deducted, errors & omissions insurance and office supplies are paid.

8) Agents Sell Their Own Homes for More Money Than Yours

False. Busy agents and top producers don't have the luxury of time to waste when selling their own home. They also understand the market better than your average home seller, which means if a home isn't selling within a reasonable period of time, it means it is priced too high. I have witnessed first-hand what happens when agents put their residences on the market. If they need to sell, they might even cut the buyer a better deal than the buyer can get on the open market.

9) Agents Should Tell You About Crime, Schools & Ethnic Make-up of Neighborhoods

False. Federal Fair Housing laws prevent a real estate agent from discriminating against a number of protected classes, which automatically prohibits an agent from disclosing anything remotely relating to the protected classes. Therefore, it may come as a shock to many people that agents cannot disclose crime rates, school stats or ethnic mixes of neighborhoods. If that kind of information is important to you, an agent can tell you where to find it but cannot provide it. Those who tell you otherwise are misinformed.

10) Agents Will Say Anything to Make the Sale

False. Although it is true that some agents will lie to you, it's unfair to paint all agents with such a broad brush. Top producing agents, those who enjoy a solid reputation in the community and practice real estate honestly and truthfully, are very careful to uphold a client's trust. Making misrepresentations or a false statement is against the law. Agents who break fiduciary relationships or fail to disclose material facts are subject to prosecution and a loss of their license to sell real estate.