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).
