Our Blog
February 18, 2019

There are a lot of naysayers online sowing the seeds of doubt about the benefits of using a real estate agent when buying or selling a Sioux Falls home, but the truth is, these professionals have the knowledge, experience, and skill to help you make a speedy and profitable sale, or alternately, find that million dollar listing of your dreams and get the best possible deal on purchase.  Here are just a few common myths about real estate agents debunked.

Agents Will Hide Information to Make a Sale

It’s true that real estate agents make a commission when a sale goes through, and they deserve to be paid for their services, but agents will not go to any length to sell a home.  They won’t lie to clients when unfavorable information about a property comes to light.

Not only could doing so hurt their reputation (and in real estate, reputation counts for a lot), but they could be sued for knowing about problems and failing to disclose them.  From a perspective of pure self-preservation, this myth makes no sense at all.

Agents Only Care about the Size of Commission

To be fair, agents earn their commissions with all the work they put in to sell and home and show new listings to buyers.  Even so, commissions aren’t always as big as most people seem to think.  First of all, no one agent receives the entire commission.  It’s generally split four ways, with each agent (representing buyer and seller) and each brokerage house taking a cut.

In addition, tacking a few thousand dollars onto a transaction doesn’t equate to a significant increase in commission for agents.  Your Sioux Falls real estate agent is always pushing for the best deal for clients not for personal gain, but to deliver a satisfactory experience and gain referrals in the process.

If There’s No Discount, You’re Paying Too Much

There’s no shortage of discount brokers willing to offer clients cut-rate services, and they’re happy to tell their clients that competitors charge too much for the same services, but this simply isn’t true.  Agents who offer discounted rates won’t deliver the same level of service and exposure you’ll get with a full-service agent.

In addition, experienced and reputable real estate agents don’t offer discounts because they don’t have to.  Their reputation and results net them an abundance of clients willing to pay full price because of the value they get in return.  It’s a case of getting what you pay for.

They Take Kickbacks Lenders and Inspectors

If a real estate agent recommends a bank or a home inspector, you might be suspicious that they’re getting something out of the arrangement, but this is not the case.  It is, in fact, illegal for agents to receive kickbacks of any kind from vendors they work with, per a 1974 law, the Real Estate Settlement Procedures Act (RESPA).  So, when an agent recommends someone, it’s because they think the person or entity consistently does a good job and charges fair prices.

There’s Nothing They Do that You Can’t Do on Your Own

This is just patently untrue.  Not only do real estate agents go through extensive training to learn the best ways to navigate the market on your behalf, but they also have experience you don’t and they have access to tools designed to help you sell or buy a home.  You can go it alone, but you won’t get the same benefits a seasoned Sioux Falls real estate agent provides.

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