Myth #1:

All real estate agents are the same.

Many buyers think that anyone who holds a real
estate license is equally capable of assisting them
in buying a home. But I would ask them, “Does
everyone with a driver’s license operate a vehicle
the same way?” Of course not. Both drivers and
real estate agents are licensed by their state. But
just as drivers approach the road differently, so
can real estate licensees vary considerably in how
they approach their job.

In a similar vein, real estate designations indicate
that an agent has completed advanced training,
which is usually a sign of higher competence.
After all, would you rather hire an accountant or
a certified accountant? Still, designations don’t
necessarily guarantee a higher level of service.
To be truly successful in this business, we all need
to remain committed to personal growth and
skill development. That effort includes designations,
but it also involves something more—an
eagerness to constantly find ways to raise the
bar. So if buyers want to avoid the risks involved
in believing that we’re all the same, they should
take the same advice that most sellers employ—
interview at least three agents before you make
an informed decision about who you want to
work with.

Myth #2:

The agent on the For Sale sign will
look out for my interests.

You would think that all the changes in agency
disclosure laws over the years would have altered
the way consumers approach buying a home. But
in my experience, most buyers, and especially
first-time buyers, still don’t understand the concept
of representation and mistakenly believe
that a listing agent will watch out for their interests.
Unfortunately, buyers are still more likely to
shop for homes rather than shop for an agent
who will assist them in finding a home.
I’ve tried to help dispel this myth with my advertising
campaigns targeting buyers. Most of us
would agree that it’s very challenging to prospect
for buyers. But I believe that in order to reach
them, my ads can’t just promote my listings; my
ads need to promote me. One campaign I run
uses this theme: “Don’t call on signs. Don’t call on
ads. Call on Randy.” My marketing message goes
on to explain what, specifically, I offer buyers.
But to really connect with buyers, you need to be
very clear about your own unique value proposition,
and be able to convey this very quickly. Are
you going to tell buyers about your great negotiating
skills? Your diligence in finding every
prospective home? Or your unsurpassed knowledge
of your market? Whatever it is, you need to
pinpoint and refine your message to buyers and
include it in all your communications directed
towards them.

Myth #3:

I can find all properties for sale on my own.

As more and more first-time buyers search for
and preview properties online, the myth has
grown that they can find every property they
may be interested in on their own. But not all
available properties are advertised, or have a
sign. Overnight updates to many online listing
sites can lag real-time developments, particularly
during hot markets. Buyers don’t really
understand how the MLS works, nor are they
plugged into their local real estate markets to
the extent that agents are.

Myth #4:

If I just wait long enough, I’ll find the
perfect home.

There is no such thing as a “perfect” home. Buying
a house requires compromises, a big dose of
reality, and an awareness of market conditions.
But first-time buyers, in particular, don’t always
understand this. They’re more focused on the
enormity of the decision—they’ve never made
such a substantial purchase before and they really
want to get it right. On top of this, if the real
estate market is slow in your area, I’ll venture a
guess that you’re seeing even more foot-dragging
among first-time buyers.

But I also recognize that many good buyerclients
simply need time to make a decision. (I
think of them as “wait-watchers.”) I always
make a point of asking buyers how they want to
proceed. Do they want to do all the watching,
letting me step in to help them get the home
after they’ve identified one? Or do they prefer
that I do all the looking, letting them know if
something comes up? Discussing and clarifying
clients’ preferences in your/their role can go a
long way towards managing expectations and
helping you adapt your services to satisfy a wider
variety of clients.

Myth #5:

I’ll improve the odds of finding the house I
want if I work with more than one agent.

First-time buyers, eager to canvass a market for
all possible homes and (again) not really understanding
buyer-representation, can mistakenly
rationalize that they might as well have several
different real estate agents searching for them.
Before you know it, a buyer ends up seeing the
same house with two different agents, creating
confusion over who is doing what for the buyer
and who earns cooperative compensation.
Of course, this possible scenario could be completely
avoided if we asked, up front, if a buyer
is working with anyone else—and if we
explained buyer-representation to buyers, so
everyone was clear about who was working
together, and how. This is why buyer’s reps are
encouraged to get a signed representation
agreement with their clients. And as Standard of
Practice 16-9 of the REALTOR® Code of Ethics
instructs, we have an affirmative obligation to
make reasonable efforts to determine whether
the prospect is subject to a current, valid exclusive
agreement to provide the same type of real
estate service. So eliminating this myth among
buyers may be as simple as following our own
guidance.

Myth #6:

Buying a house is as simple as agreeing
on a price and signing a few papers.

If only it were that simple! However, first-time
buyers don’t always appreciate that purchasing
negotiations can involve many other issues,
beyond price. Nor do buyers realize how many
other steps are part of the purchase process after
the contract is signed, including loan approvals,
appraisal, title search, home inspection, etc.
Helping a buyer move a transaction successfully
from contract to closing takes a lot of effort!
This is another area where I think it’s vitally
important for buyer’s representatives to manage
their client’s expectations; including explaining
how each step will be handled to finalize their
purchase. Are you planning to baby-sit the transaction
all the way to closing? Or do you have
other people on your team who will help guide
the buyer? Regardless of how you assist clients
with their transactions, buyers need to know
what to expect right up front, so they don’t
encounter any unpleasant surprises. To earn
their long-term loyalty (and referrals), keep
them informed—and satisfied—until they’ve settled
into their new home, and beyond.

Myth #7:

Foreclosures offer the best deal.

With so many more foreclosures taking place,
and so much media attention focused upon
them, it’s not surprising that many buyers
assume that foreclosures are a good deal. But
the fact is, some are overpriced. And some have
undesirable conditions attached to them. I
always tell buyers that when it comes to foreclosures,
what you see is what you get—and what
you don’t see is also what you get.
Still, foreclosure properties represent a growing
segment that many buyer’s representatives don’t
fully understand. To determine whether or not a
foreclosure truly offers a good value requires
considerable research and due diligence.

Myth #8:

Getting a mortgage should be quick and easy.

Many first-time buyers question and resent the
whole lending process. They ask, “Why do I need
to provide that?” and “Why do I need to jump
through all these hoops?” In my experience,
their resentment has less to do with thinking
they’re entitled to a mortgage, and is more
about feeling annoyed and impatient.
Again, we can help smooth the process by
explaining that, especially in the recently-turbulent
mortgage market, lenders need to take
important precautions before extending credit.
Even if your buyer is seeking a loan from a bank
where they’ve been a long-time customer, the
fact remains that their mortgage will very likely
be sold off in the secondary market to an investor
who doesn’t know them, but expects to see complete
documentation on creditworthiness.

Myth #9:

All mortgages are essentially the same.

Given all the recent attention on borrowers who
are struggling to live with ballooning adjustablerate
mortgages, you’d think that more first-time
buyers would be attuned to the notion that
mortgages are not all alike. Perhaps it’s more
important than ever for buyer’s representatives
to help them understand the complexities in
choosing a mortgage.

The key questions are: How does one rate compare
to another over the long haul? How long
will you be in your home? What are your longterm
investment goals? Does a 15-year versus
30-year program measure up against your goals?
Does an adjustable rate mortgage make sense,
and if so, what’s the best time frame? First-time
buyers often don’t look at enough options
before they buy. In assuming that all mortgages
are the same, they deprive themselves of making
a fully-informed decision.

Myth #10:

If something appears on the inspection report,
the seller has to fix it.

Because buyers often make an offer contingent
upon an inspection, many buyers believe that
sellers must fix anything that shows up on the
inspection report. And inspectors sometimes
aggravate the situation by including subjective
information in their reports, or declaring that
the house is a good or bad deal, instead of
providing a straightforward, detailed list of
observations.

Again, our challenge comes back to managing
expectations well in advance. If you haven’t
already discussed the inspection process with
your buyers, you’re just asking for problems.
An inspection report can trigger re-negotiations
on the house. Now you need to execute a
careful balancing act. The buyer still wants to
buy the home, but how hard should they push
for repairs or price adjustments? What if
re-negotiations break the deal? At this stage of
the transaction, we can still provide helpful
information. But in the final analysis, we need
to step back and let our buyers make their own
judgment calls.