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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:
- 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.
- 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.
- 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?
- 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.
- 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.
- Your REALTOR® can help you
in understanding different financing options and in identifying qualified
lenders.
- Your REALTOR® can guide you through the closing process and make
sure everything flows together smoothly.
- 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.
- 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.
- 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.
- 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.
- 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).
Used by permission from the National Association of REALTORS® and Move.com
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