Why Use a REALTOR®
Working with 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 several 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® 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.
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).
-Source: National
Association of REALTORS® (www.nar.realtor)