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 ®. 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
homebuyers would use the same REALTOR® again.
How Important is $100,000 To You?
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
If you're still not convinced of the value of a REALTOR ®, there are
several facts to consider. See the one dozen reasons to use a Realtor on
the right hand side of the page =>
The Critical Role of a REALTOR®
in the Real Estate Transaction
One Dozen Reasons to
Use a Realtor ®
1. Buying Power
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.
3. Objective Information
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. Negotiation Power
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.
6. Financing Options
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.
8. Market Information
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.
10. Advertising and Marketing
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. Evaluate Buyer's Proposal
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
12. Closing Details
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).
One Dozen Reasons to Use a Realtor ®