Why should I 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 treating 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 most significant 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 use of an attorney? Considering the small upside cost and the considerable downside risk, it would not be very smart to consider a deal in real estate without the professional assistance of a REALTOR®.
How will a Realtor® help me buy a home?
• Your REALTOR® can help you determine your buying power, also known as your financial reserves + your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income, and current debt, they 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 seek 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 of 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 on 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, 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 property’s title. Title indicates property ownership 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 understand different financing options and identify qualified lenders.
• Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
How will a Realtor® help me sell my home?
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 critical 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; 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 shows that 82% of real estate sales result from 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.