Why Use a REALTOR?
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $150,000. If you had a $150,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $150,000 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 licensed realtor.
Your realtor needs to be committed to treat all parties to a transaction honestly, and subscribe to a strict code of ethics. They should maintain a higher level of knowledge of the process of buying and selling real estate. As a member of the National Association of Realtors®, with many years of real estate experience, I subscribe to a stringent set of rules and ethics, which guide every client relationship that I have and every transaction that I help conduct.
Here are more reasons to use a Realtor, and select the right representative for you and your family:
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 should be able to 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 of 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 should have access to a variety of informational resources. You realtor should be able to provide local community information on utilities, zoning. schools, etc. There are two additional items that 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 should 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: Someone with lots of experience and knowledge of every component of the financial transaction is obviously critical when purchasing, or selling, a home.
7. Your Realtor can guide you through the closing process and make sure everything flows together smoothly: Knowing what to expect at closing, what documentation to bring with you, and someone that can answer any and all of your questions will make the whole process easier and stress-free for you and your family.
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.
10. Your Realtor will know when, where and how to advertise your property: There is a misconception that advertising sells real estate. But 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).
I have the experience and expertise to provide all these benefits, and more, when you are looking to buy or sell your next home, with a personalized touch that can’t be replicated by most other realtors.