| 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). |
