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®.
Top 12 Reasons to Use 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).