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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. 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). |
