Common Misconceptions
- I can only buy a house through the agent whose name is on the sign or in the ad
- A Realtor® is tied to a specific neighborhood
- Real Estate is what I do in my spare time
- I don’t need a Realtor®, I can find my new home on the internet
- Real Estate agents make too much money
I can only buy a house through the agent whose name is on the sign or in the ad
When you see an agent’s name on a sign, it simply means that that particular agent has the exclusive right to represent that seller in any negotiations and to present all agreements of sale. So, when you’re looking to buy a home and you’re not working with a Realtor® you can call the person on the sign, but keep in mind that that agent represents the seller’s interest and not yours. As a buyer it’s in your best interest, to enlist the services of a Realtor as your Buyer’s Agent. Let your agent protect your best interests, by making the call, showing the property or getting the information for you.
A Realtor® is tied to a specific neighborhood
As an agent licensed in Delaware, I am able to show property–listed or otherwise–and present agreements of sale on real estate anywhere within the state. I have decided to specialize in Kent County (DE). Sounds like a big area, but it’s really only about a 15-mile radius. If you’re looking outside of this area, I will refer you without cost to an agent who can help you find what you need. While some agents do specialize in a particular neighborhood or the immediate area surrounding where they live, most cover a larger area.
Real Estate is what I do in my spare time
For some, real estate is a part-time endeavor. Showing houses and putting signs in the yard is the easy part. Keeping up to date with a volatile real estate market, staying abreast of changes in financing options and keeping pace with the development boom are just a few reasons I’ve made a full-time commitment to my profession. But even more important, when you’re involved in a sales transaction, a lot of things need to happen along a very strict timeline. One way to make sure things happen when they’re supposed to, is to have a full-time agent, like me, paying attention and being available, virtually all the time.
I don’t need a Realtor®, I can find my new home on the internet
Researching neighborhoods and pricing patterns on the internet is a great idea, and a lot of fun but keep in mind, not all listings make it to the internet and what’s there isn’t always current and doesn’t always tell the whole story. As a Realtor® I have access to the TREND (MLS) which is an automatically updated, searchable database that includes detailed information on every property that’s been listed by a Realtor® including listings that have been sold, expired, or withdrawn. Like to receive housing info over the web? Ask me to email it to you — just at a minimum you will know the information is current.
Real Estate agents make too much money
Like any profession, you get what you put into it. If you work hard and work smart you can make a very good living in Real Estate. As an agent, I don’t earn a salary, I earn a commission on every transaction I complete. If a transaction that I’ve worked on for months never settles, I never get paid. The going rate for a sales commission is 7%, or $7,000 out of every $100,000 sold. Sounds like a lot of money, but that 7% is split between the listing brokerage (the name on the sign) and the buyer’s brokerage. Each brokerage then shares a percentage with the agents involved in the transaction. For example, if I’m working with the buyer, I collect 3.5%, of which as much as 50% goes to the brokerage (ERA Harrington Realty, Inc.). I may also have to pay a referral fee (up to 40% of the 3.5%). So, of that $7,000, assuming a 50 split with my broker and only a 30% referral, my share is about $1225. Subtract taxes, benefits, fuel, advertising, and other expenses and you can see why Real Estate is a full-time job.