Myth #1: Real estate agents are being phased out by DIY home buying and selling.
Fact: The majority of home buyers and sellers still use real estate agents, and there is certainly no shortage of options. In the United States, there are 2 million active real estate licenses and 86,004 real estate brokerage firms in operation. In 2015, 87% of buyers purchased their home through a real estate agent or broker, a number which has increased from 69% in 2001. Also in 2015, 89% of sellers used a real estate agent when selling their home. Contrary to the myth that DIY home buying and selling rules the market, in 2014 only 8% of home sales were for sale by owner (FSBO).
Myth #2: Working with a real estate agent is not a positive experience.
Fact: The majority of home buyers and sellers are happy with their agent experience. 72% of buyers and 67% of sellers say they would definitely use the same agent again.
Myth #3: Hiring a real estate agent doesn’t lead to higher profits.
Fact: Sellers actually make higher profits when they use a real estate agent. Consider the following math. The average selling point of an FSBO home is $210,000. The average selling point of a home with a real estate agent is $249,000. The average real estate agent commission is 6%. This means that on average, after commission, sellers who use a real estate agent get an extra $24,060 of profit over DIY sellers.
Myth #4: Real estate agents only cater to baby boomers.
Fact: Agents are familiar with the preferences of all current generations. For example, RE/MAX agents know that the top 5 features Millennials and Generation Xers want in a new home are an open concept floor plan, an updated kitchen and bathroom, hardwood floors, eco-friendly features, and outdoor living space.
Myth #5: Real estate agents can only give basic information about a house.
Fact: Agents are great sources of information about the neighborhood and community surrounding a property. This is especially important because 78% of home buyers value neighborhood quality over the size of the home. Real estate agents have a median of 10 years of experience in a community, and RE/MAX agents communicate this expertise with neighborhood guides offering information on an area’s education, recreation, economics, and more.
Myth #6: Selling a house on your own is easy.
Fact: DIY home sellers report a variety of struggles throughout the selling process. Top complaints involve problems understanding the paperwork, getting the right price, preparing or fixing the home for sale, and selling within the planned time frame.