So you think you have found everything you need to know about how DFW real estate agents work from ton of misinformed and well meaning Web sites? Here's what you need to know about DFW Realtors.
1) The Higher the Price of a House, The More the Agent Makes
Not True. Have you ever heard someone say "Every dollar more you pay for that house makes the Realtor more money, so don't trust a Realtor." That is a misnomer. The difference between $400,000 and $420,000 for Denton County real estate is about $300 to a Realtor. Do you really think the Realtor pays attention to the commission difference of a $20,000 price spread?
2) Real Estate Agents are Always Late for Their Appointments
Not True. There is no excuse for habitual tardiness among any professional. It doesn’t matter if it's your doctor, your plumber or your Realtor. Everyone deserves respect, and respect is earned by providing professional service and being on time. If your Realtor has a self deluded impression of his self’s own importance, find another one. Professional Realtors who list Tarrant County Real Estate are on time for their appointments. Clients who listen to their agents' excuses allow their tardiness to take place. The best Realtors are always prompt for their appointments. Don't let a few bad agents give the entire industry a perception it doesn't deserve.
3) The Less Commission You Pay to Sell, The More Money You Will Make
Not True. Every Discount Real Estate Brokers like to propel this myth. They will claim to save homes seller’s money by charging less commission. The reality is that Realtors who are top producers and succeed in the Fort Worth Real Estate business do not discount their services. Why? Because they don't need too. Less than full service brokers cannot afford all the bells and whistles paid for by full service brokers which many times tend to bring higher offers. It comes down to, you get what you agree to pay for. A 2.5% reduction in commission doesn't amount to much when your price is discounted 5% or more because your agent couldn't afford full market exposure to sell your house.
4) Realtors Must Show You Homes On Demand
Not True. Unless you have a signed buyer representation agreement with an agent or that agent represents the seller 100%. That agent you call doesn't have to show you any homes. You can't call a local real estate office and demand service or demand to be shown houses. Like you, agents don't work for free. If you aren't planning to write an offer with the Realtor you call, be upfront and don't waste the Realtors time. Don't expect the Realtor, who is not likely to earn anything, to be excited about jumping in the car with you. That agent is not obligated to show you any houses. Nor is the listing agent obligated to show you a listing if you are represented by another Realtor without a request from the other Realtor.
5) Realtors Receive Kickbacks from Lenders / Title Companies / Etc.
Not True. Since way back in 1974, Realtors have been prohibited from receiving any type of kickback or favor from real estate vendors. It's against the law. It is also against the Real Estate Settlement Procedures Act (RESPA). Some Realtors 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) A Realtors Home Inspector Will Favor the Realtor
Any smart Realtor wants full disclosure. This is because they want what is best for their client but also because they do not want to be sued. Realtors must disclose all material facts. A buyer is always, without fail, better off knowing the truth about a house. Good Realtors want their buyers to receive full disclosure and are willing to fight for repairs on their buyer's behalf or help them cancel the transaction.
7) Realtors Make Too Much Money
Not True. A typical Realtors annual average income is less than $36,000 a year. You will find that about half the Realtors in any brokerage firm close less than four transactions a year. Also, office fees need to be paid, MLS fees and lockbox fees are deducted, overhead and expenses for the Realtor are deducted, errors and omissions insurance and office supplies are paid.
8) Realtors Should Tell You About Crime, Schools & Ethnic Make-up of Neighborhoods
Not True. Fair housing laws prevent Realtors from discriminating against several protected classes, which automatically prohibit them from disclosing anything that remotely relates to protected classes. It may come as a shock to potential home buyers 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.
9) Realtors Will Say Anything to Make the Sale
Not True. There are occasions that some Realtors will lie to you, it is not fair to paint all Realtors with such a broad paint brush. Top producing Realtors, who enjoy a solid reputation in the community and practice real estate with high ethical standards, are very careful to uphold a client's trust. Making misrepresentations or false statements is against the law and the ethical code set by the Board of Realtors. Any Realtor who breaks fiduciary relationship or fail to disclose material facts to their clients are subject to legal prosecution and a loss of their real estate license.