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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).
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