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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:
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. A 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).
Courtesy of NATIONAL ASSOCIATION OF REALTORS® |
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