The idea of making money by hiring real estate agent services is still fresh in mind, and so is the question of whether these are really worth the money. Most people will answer "no" immediately, especially if they are new to the industry or have been hit hard by the recession. There is a lot of misconception out there about getting commission based by the sale of a house, which leads people to think that agents are getting rich by making a small commission for each sale. It's a misconception that needs to dispel. Discover more info about real estate investing on this page.
One common misconception is that when a buyer contacts an agent, the agent gets a commission from the buyer. The truth is that agents get a share of every single sale made from the buyer - even if it's just one. So the buyer pays nothing unless the agent is successful in persuading the buyer to sign on the dotted line. So when people talk about "agent vs. real estate agent commission", it's really just buyer vs. agent.
Another misconception about real estate agents is that they get a kickback from the seller for each sale, which is untrue. When the buyer signs on the dotted line, the seller is legally bound to offer the buyer a refund of his money. So real estate agents make their commission based on the fees they get. They do not get a kickback from sellers. Even if the seller does give them a kickback now and then, it's only on an "occasional" basis and not a constant one. There are no special "fee mills" in real estate today. Click here for more details about choosing the best real estate service provider.
A common myth is that the real estate broker's fee is the "big ticket" item that buyers are shelling out, when in actuality most fees are small and directly related to the closing cost of the transaction. Closing costs can include title insurance, property taxes, inspections, taxes, and other miscellaneous fees. If the buyer ends up spending a lot more money paying a broker then buying the house anyway, the buyer can always hire his/her own agent. There are many web sites available to provide buyer and seller comparisons and detailed descriptions of what's included in a typical transaction. For more understanding of this article, visit this link: https://en.wikipedia.org/wiki/Real_estate.