Five Myths About Using A Realtor

Five Myths About Using A Realtor

Home ownership may seem like a daunting task. To many first time home-buyers, one may have made up conclusions regarding using a Realtor and the home-buying process. Here are 5 myths, de-bunked!

Myth 1 - Using a Realtor costs money

Yes and no. If  you are a buyer or renter, a Realtor's services are absolutely FREE! The listing agent's broker is the one who pays the Realtor  commissions- not you! If  you are wanting to sell/ list your house, then yes, you would be responsible for paying all of the Realtor commissions, buying and selling side. In our area, the standard total commissions you're  looking at is around 6%: 3% to the listing broker and 3% to the buying broker. The agents get a sliver of the pie from those commissions.

If you are a buyer, your Realtor works for FREE until they help you to find your perfect home! Same with the selling side. Your Realtor will work to promote, advertise, and sell your house, and you only pay them once your house goes  to act of sale.

Myth 2 - A Realtor can only show me houses that they/their brokerage has listed for sale

False! A Realtor licensed in the state of Louisiana is licensed to sell real estate in the entire state. A Realtor can chose to show houses/ build their business in a certain part of town/city/ area, but that is their choice. If you see a house  on Google, Trulia,  Zillow, Realtor.com, or any house popular listing platform, your Realtor is licensed and able to show you ANY property that catches your eye!

Myth 3 - I have no money in savings for a down-payment therefore can't buy a house.

False!  Rural Development loans through the USDA provide 100% financing which means that no down-payment is required! You would need money for the home inspection, appraisal, and closing costs. Most lenders offer deals on appraisals and you could potentially finance your closing costs into the financing amount. Check with a local lender to learn more about these requirements. 

Myth 3 - I have poor credit, and/or recently filed for divorce/ bankruptcy/foreclosure. I'm not able to buy a house at this time.

Again, yes and no. Most Realtors are willing and able to partner you up with local lenders, credit repair companies, and banking professions to provide you with a FREE consultation as to where you stand through a lender's eyes. If any (or all) of these apply to you, and you are interested and motivated to purchase a home, a Realtor can help point you in the right direction. Most clients are 6-9 months out anyways. Part of the process is building the relationship!

Myth 5 - I have a lot of cash. Banks nor lenders will touch me therefore I can't purchase a house

False! Most Realtors will seek a second opinion and if a traditional mortgage isn't in the foreseeable future, there is still a way for you to purchase a house: owner financing! Most Realtors are willing to help find you a house through un-traditional financing methods such as bond for deed or lease purchase. Bond for deed transactions provide you with full ownership rights including building equity! Everything in the sale contract is negotiable including the time-frame as to when you have to re-finance it into your own name. Both of these sales are posted with the clerk of court through an escrow services company.


I hope this article helps to provide some clarity about the process! If you're considering buying a home and if ANY or more than one of these "myths" are stopping you, give me a call! I'd love to talk further about the process and learn how I can be a resource to your family. Call or text me anytime! 985-662-8151


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Phone: 985-205-5783
Dated: September 5th 2018
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About Ron: Born and raised in South Louisiana, there's nothing more I enjoy doing than helping people buy and s...

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Barden Realty
4990 Hwy 22 #A
Mandeville, LA
985-260-1654
985-845-4393