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Drawbacks to Using Real Estate Agents
Although using a real estate agent can bring a lot of benefits to a buyer or seller, there are also a lot of pitfalls associated with using a real estate agent. This article will outline some of the problems that can occur when using a real estate agent to purchase or sell a home.

The main drawback to using a real estate agent is the cost. Depending on what they do, the real estate agent can earn anywhere from 2 to 5% on the sale of a house. This is just your agent and does not include the other party's agent. This can increase the cost of purchasing or selling a home significantly. Consider that 5% of a $200,000 home purchase is $10,000. This is a lot of money to spend on a person that is essentially a middleman in the transaction. Although the real estate agent can provide a lot of benefits, be sure to remember that there is a price tag in dealing with agents.

Another drawback to using real estate agents is that the agent is often not incentivized to look after the interests of the buyer or selling. Since the real estate gets a comission on the purchase or sale, the agent is incentized to sell or purchase things quickly, not neccessarily at the price that the seller is looking for or even to help the buyer obtain the type of house that they are looing to purchase. If you are using an agent, be sure to be patient and don't rush.

Some agents may not be experienced enough to competantly conduct a sale or purchase. This is disastrous. If you are thinking of using an agent, be sure to check the agent's experience and abilities. In addition, you should also check to make sure that the agent is not too busy to deal with you. Some "superstar" agents have too many clients and are not able to spend enough time with a client.

Finally, beware of dual agency. Dual agency, in the states that allow it, can put a buyer or seller at a disadvantage. Somtimes the agent can work with both the buyer, and the seller. In these cases, the agent or realtor is often not incentived to serve either one of them well - only to structure a deal. If you are going to spend the money for the services of a realtor, you should get one that represents you fairly.

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