Busting Mistaken Assumptions About Real Estate Agents
If you buy a home or sell a home, it is highly likely that you will work with a real estate agent for help. These upstanding professionals are invaluable, but they can get an unfair reputation due to common misconceptions. Here is a look at a few wrong assumptions about real estate agents as professionals in the industry.
Assumption: Real estate agents don't really have any formal education.
You would be hard-pressed to find an agent that did not have formal education in real estate or without a college degree pertaining to the real estate field. In some states, the credentials required to become a licensed agent are less substantial. However, even in these states, it is typically required for an agent to pass a written exam and potentially practice as an apprentice before they are licensed.
Assumption: You can't trust a real estate agent to find you the best home because they are biased by potential financial gain.
It is true that agents usually make commission when they help sell a home. However, agents take their roles very seriously; they are going to give you all the details about a property if you are looking to buy it. You can actually pursue a lawsuit in most states if an agent misleads you as a buyer, and it is incredibly rare for this to take place because real estate professionals adhere to a strict code of ethics.
Assumption: Real estate agents recommend inspectors and appraisers that are advantageous to them.
When you are looking to either buy a home or sell a home, you may turn to your real estate agent to help you find a licensed inspector or an appraiser in the area. You can trust that the agent is going to get you an unbiased professional to help. Some buyers and sellers assume that there may be shady interactions going on in which an appraiser would say a home is not worth as much or worth more than what it is. However, these professionals, just like real estate agents, have to adhere to legal specifics and guidelines or risk losing their profession.
Assumption: Most agents get kickbacks from lenders if they help find buyers.
It is actually illegal for any professional in real estate to get any kind of financial incentive for connecting buyers to a certain lender. The RESPA (Real Estate Settlement Procedures Act) prevents these practices, and an agent could lose not just respect, but also their license to practice for being found in violation. Therefore, if an agent is telling you that a certain lender may offer the best mortgage, they are likely making recommendations based on legitimately wanting to help you out.
For more information, contact a local real estate agent.
