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®.
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. 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. Your 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).
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