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WHY USE A REALTOR
Can a real estate agent
really help me in buying and selling property? The answer is YES!
When you're ready to think about buying or selling your property, you need to
ask yourself the following questions: Do you have the time, energy, sources of
information, and contacts to do the job yourself? If you were one of the
'do-it-yourself' people, would the results be as good or better than they
would be if you had professional assistance? Would it have gone smoother?
Would it have given you more personal time? Would you have purchased for less,
or sold for more, if a real estate agent was involved? Read the following
information and learn how a real estate agent can help you understand
everything you need to know about a real estate transaction.
The Buying Process
The process of buying a home or investment generally starts with determining
your buying power; that is, your financial reserves plus your borrowing
capacity. If you give a real estate agent some basic information about your
available savings, income and current debt, they can refer you to lenders best
qualified to help you. Most lenders -- banks and mortgage companies -- offer
limited choices.
Finding
Once you know how much you can and want to invest, the next step is to find
the properties that most nearly fit your needs. This is the time to choose a
real estate licensee. When picking a real estate agent look for one who is
also a REALTOR®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF
REALTORS®, a real estate trade association, and all members agree to abide by
a 17 article Code of Ethics. A REALTOR® has many resources to assist you in
that 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.
Selecting
Your job is to make the final selection of the right property for you. This is
when excitement and emotion run high. Your real estate agent 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?
Negotiating
There are a myriad of 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 also 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.
Due Diligence
With a negotiated agreement in hand, it is time to complete 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 agent 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 agent, title company or attorney can help you
resolve issues that might cause problems at a later date.
Financing
As soon as you are reasonably sure the property is right for you, the process
of obtaining financing begins. Your agent can help you in understanding
different financing options and in identifying qualified lenders.
Closing or Settlement
Finally, there is the closing, or settlement, as it is known in different
parts of the country. Every area has its own unique customs. In some areas,
the title or escrow company will handle this process. In other parts of the
country, an attorney does it all. Again, your real estate agent can guide you
through this process and make sure everything flows together smoothly.
Selling Real Estate
Pricing
This process generally begins with a determination of a reasonable asking
price. Your real estate agent 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.
Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or
cosmetic work that will significantly enhance the salability of the property.
Marketing includes the exposure of 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 agent 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.
Advertising is part of marketing. The choice of media and frequency of
advertising depends a lot on the property and specific market. For example, in
some areas, newspaper advertising generates phone calls to the real estate
office but statistically has minimum effectiveness in selling a specific
property. Overexposure of a property in any media may give a buyer the
impression the property is distressed or the seller is desperate. Your real
estate agent 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 and
family, and personal contacts.
Security
When the property is marketed with the agent help, you do not have to allow
strangers into your home. Agents will generally pre-screen and accompany
qualified prospects through your property.
Negotiating
The negotiation process deals with much the same issues for both buyers and
sellers, as noted above under the buying process. Your agent 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
agent can help you write a legally binding, win-win agreement that will be
more likely to make it through the process.
Monitoring, Renegotiating and Closing
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 agent is the best person to objectively help you
resolve these issues and move the transaction to closing (or settlement).
How Do Real Estate Agents Get Paid?
Real estate agents or brokers are generally paid through the sales commission
paid by the seller when a transaction closes. Agents have expenses and
financial obligations just like you, so it will be to your mutual benefit if
you choose a real estate agent and stick with that person. The agent will
respect your loyalty and respond with a sincere commitment to you.
Why 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.
Using a REALTOR®
You Be the Judge!
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®!
For a FREE Market
Analysis of your Home
or more Information on other homes
in the Tampa Bay Area,
email or call us!
or call (813) 996-4747
© 2003 Coldwell Banker Real Estate Corporation. Coldwell Banker® is a licensed trademark of Coldwell Banker Real Estate Corporation. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned and Operated except Offices Owned and Operated By NRT Incorporated.
