Top 3 Myths about Louisville Real Estate Agents

Myth 1: Louisville real estate agents make a ton of money.

Even though this myth is a widely held opinion, it isn't true. The top performing 5% of agents make 1/3 of all the revenue, while the top 10% make 54.2%. While the average gross income for a Louisville agent in 2011 was $27,364 the mdian income was just below $13,000. Just because a handful of agents are make pretty decent money doesn't mean it's the norm for the entire industry. Keep in mind most agents are only part time.

Myth 2: Agents must do everything their clients ask.

An agent is defined as a business representative. A realtor is a licensed agent who adopts a higher level of service through the Realtor's Code of Ethics. The agent is supposed to protect and promote their clients best interests, and here are three kinds of requests that are not supposed to be asked of by a client.

  1. Any unlawful request, such as the Fair Housing Statutes
  2. Any legal requests, but is'nt in the clients best interest. Agent's training and experience gives them the credentials to know the difference.
  3. Any lawful request that is within the legal limits, but is beyond reasonable service. Just because the client has Wednesday off doesnt mean you should show them 65 houses in one day. 

Common sense is the usual winner here. Agents want to have a good experience with their clients so they are referred to friends, but if the client's requests jeapordize the agent's license there will be problems. This experience is suppose to benefit both parties, and maybe even construct a freindship.

Myth 3: Agents get referral dollars from lenders, appraisers, home inspectors, etc.

By law this myth isn't true. By law the only referral fee an agent can receive money from is their own broker, and that broker is only allowed to get a referral fee from another broker. 

How this works: Agent Q helped the Smith family buy a home several years ago, and now the Smith family is moving to Utah. Now Agent Q is trying to find another Agent in Utah that best fits the Smith family. Agent Q finally finds Agent U after several interviews and the broker of Agent U must pay a referral fee to the broker of Agent Q.

Word of mouth referrals are the best ways to find a good agent you can trust. Don't take any short cuts to make/save a few extra dollars, it won't be worth it if you get caught.

Post a Comment