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All real estate licensees are not the same. Only real estate licensees
who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly
called REALTORS®. They proudly display the REALTOR "®" logo on the
business card
or other marketing and sales literature. REALTORS® are committed to
treat all parties to a transaction honestly. REALTORS® subscribe to a
strict code of ethics and are expected to maintain a higher level of
knowledge of the process of buying and selling real estate. An
independent survey reports that 84% of home buyers would use the same
REALTOR® again.
Real estate transactions involve one of the biggest financial
investments most people experience in their lifetime. Transactions today
usually exceed $100,000. If you had a $100,000 income tax problem, would
you attempt to deal with it without the help of a CPA? If you had a
$100,000 legal question, would you deal with it without the help of an
attorney? Considering the small upside cost and the large downside risk,
it would be foolish to consider a deal in real estate without the
professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a
dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power
-- that is, your financial reserves plus your borrowing capacity. If you
give a REALTOR® some basic information about your available savings,
income and current debt he or she can refer you to lenders best
qualified to help you. Most lenders -- banks and mortgage companies
-- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search.
Sometimes the property you are seeking is available but not actively
advertised in the market, and it will take some investigation by your
agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing
objective information about each property.
Agents who are REALTORS® have access to a variety of informational
resources. REALTORS® can provide local community information on
utilities, zoning, schools, etc. There are two things you'll want to
know. First, will the property provide the environment I want for a home
or investment? Second, will the property have resale value when I am
ready to sell?
4. Your REALTOR® can help you negotiate.
There are myriad negotiating factors, including but not limited to
price, financing, terms, date of possession and often the inclusion or
exclusion of repairs and furnishings or equipment. The purchase
agreement should provide a period of time for you to complete
appropriate inspections and investigations of the property before you
are bound to complete the purchase. Your agent can advise you as to
which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the
property.
Depending on the area and property, this could include inspections for
termites, dry rot, asbestos, faulty structure, roof condition, septic
tank and well tests, just to name a few. Your REALTOR® can assist you in
finding qualified responsible professionals to do most of these
investigations and provide you with written reports. You will also want
to see a preliminary report on the title of the property. Title
indicates ownership of property and can be mired in confusing status of
past owners or rights of access. The title to most properties will have
some limitations; for example, easements (access rights) for utilities.
Your REALTOR®, title company or attorney can help you resolve issues
that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing
options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure
everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date
information on what is happening in the marketplace and the price,
financing, terms and condition of competing properties.
These are key factors in getting your property sold at the best price,
quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and
the public.
Often, your REALTOR® can recommend repairs or cosmetic work that will
significantly enhance the salability of your property. Your REALTOR®
markets your property to other real estate agents and the public. In
many markets across the country, over 50% of real estate sales are
cooperative sales; that is, a real estate agent other than yours brings
in the buyer. Your REALTOR® acts as the marketing coordinator,
disbursing information about your property to other real estate agents
through a Multiple Listing Service or other cooperative marketing
networks, open houses for agents, etc. The REALTOR® Code of Ethics
requires REALTORS® to utilize these cooperative relationships when they
benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your
property.
There is a misconception that advertising sells real estate. The
NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate
sales are the result of agent contacts through previous clients,
referrals, friends, family and personal contacts. When a property is
marketed with the help of your REALTOR®, you do not have to allow
strangers into your home. A REALTOR® will generally prescreen and
accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's
proposal without compromising your marketing position.
This initial agreement is only the beginning of a process of appraisals,
inspections and financing -- a lot of possible pitfalls. Your REALTOR®
can help you write a legally binding, win-win agreement that will be
more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home.
Between the initial sales agreement and closing (or settlement),
questions may arise. For example, unexpected repairs are required to
obtain financing or a cloud in the title is discovered. The required
paperwork alone is overwhelming for most sellers. Your REALTOR® is the
best person to objectively help you resolve these issues and move the
transaction to closing (or settlement).
Courtesy of NATIONAL ASSOCIATION OF REALTORS® |
