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).
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