Check your understanding

Check your understanding of key concepts before moving to the “Do it yourself” section.

Indicate whether each statement is True or False.

1. Homebuyers really don’t need to use real estate agents – hiring an agent is a waste of money.

Correct! Buying a home is a huge financial commitment, and home buying is foreign territory to most people, especially first time home buyers.  Practices, procedures, and terminology are well-known to real estate professionals but baffling to those outside of the industry.  Realtors can help you find properties that suit your needs (and that you may not have found otherwise). They can “show you the ropes” in terms of process, help you be objective when evaluating properties, and prove to be expert negotiators in one of the most important financial transactions you’ll ever face.
Incorrect. Buying a home is a huge financial commitment, and home buying is foreign territory to most people, especially first time home buyers.  Practices, procedures, and terminology are well-known to real estate professionals but baffling to those outside of the industry.  Realtors can help you find properties that suit your needs (and that you may not have found otherwise). They can “show you the ropes” in terms of process, help you be objective when evaluating properties, and prove to be expert negotiators in one of the most important financial transactions you’ll ever face.

2. When buying a home, it’s better to work with an agent who is representing you exclusively in a transaction, as opposed to representing both you and the seller.

Correct! If an agent is representing both you and the seller, when it comes time to negotiate, the agent will be trying to make money for both you and the seller. Your goal should be to find someone who is just in your corner, and just looking out for your best interests (not yours and the seller’s).
Incorrect. If an agent is representing both you and the seller, when it comes time to negotiate, the agent will be trying to make money for both you and the seller. Your goal should be to find someone who is just in your corner, and just looking out for your best interests (not yours and the seller’s).

3. You don’t need to ask a real estate agent to show you all the properties in which you might be interested. They will automatically show you all properties, regardless of how much money their commission structure allows them to make on those properties.

Correct! Buyer’s agents will often ignore listings that would provide them with a reduced commission. You need to let your agent know that you will be shown ALL the properties you might be interested in, regardless of the commission structure. If the agent refuses, find another agent.
Incorrect. Buyer’s agents will often ignore listings that would provide them with a reduced commission. You need to let your agent know that you will be shown ALL the properties you might be interested in, regardless of the commission structure. If the agent refuses, find another agent.

4. Even when working with an agent you hope you can trust, you should be honest, but may not want to be totally forthcoming with that agent, including how much you are willing to pay for a property.

Correct! Even though you have chosen an agent you hope you can trust, you may not want to be totally forthcoming with that agent. Your agent’s job is to communicate your intention. If he or she is portraying you as having reached your limit-- that there won’t be any counter-offers -- you stand a better chance of buying that home at the price you’d hoped for.
Incorrect. Even though you have chosen an agent you hope you can trust, you may not want to be totally forthcoming with that agent. Your agent’s job is to communicate your intention. If he or she is portraying you as having reached your limit-- that there won’t be any counter-offers -- you stand a better chance of buying that home at the price you’d hoped for.

5. There really aren’t any unethical real estate agents out there.

Correct! Although great numbers of real estate agents are honest, hard-working people with whom you can place your trust, there are also great numbers who are unethical and will try to manipulate you into doing something that makes them a big commission but puts you into a situation which can be damaging.
Incorrect. Although great numbers of real estate agents are honest, hard-working people with whom you can place your trust, there are also great numbers who are unethical and will try to manipulate you into doing something that makes them a big commission but puts you into a situation which can be damaging.

Practice what you learned Do it yourself

Refinance Rates,
 Product:                      Today       Last Week
Compare Rates in your area: