Why
Use a REALTOR®?
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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