Why Use a Realtor®?
Not every real estate agent or broker is a REALTOR®. That term and the familiar
Block "R" logo are trademarked by the National Association of
REALTORS® and can only be used by those are REALTOR® members through
their local association of REALTORS®.
While all REALTORS®
are state-issued licensees as agents or brokers, the major
difference between a "real estate licensee" and a REALTOR® is that
REALTORS® have taken an oath to subscribe to a stringent,
enforceable Code of Ethics with Standards of Practice that promote
the fair, ethical and honest treatment of all parties in a
transaction. Non-member licensees have taken no such oath and are
not morally bound to the ethical practices and principles set forth
in the REALTOR® Code. 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®.
For that extra
measure of peace of mind, ensure the individual seeking to represent
you is both a real estate licensee and 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./p>
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).
Surveys show that
many homeowners and homebuyers are not aware of the true value a
REALTOR® provides during the course of a real estate transaction.
At the same time,
regrettably, REALTORS® have generally assumed that the expertise,
professional knowledge and just plain hard work that go into
bringing about a successful transaction were understood and
appreciated.
Many of the most
important services and steps are performed behind the scenes by
either the REALTOR® or the brokerage staff and traditionally have
been viewed simply as part of their professional responsibilities to
the client. But, without them, the transaction could be placed in
jeopardy.
Listed below are
nearly 200 typical actions, research steps, processes and review
stages necessary for a successful residential real estate
transaction and normally provided by a full service
real estate brokerage and for which they are entitled to fair
compensation.
The list is by no
means an attempt to set forth a complete list of services as these
may vary within each brokerage and each market. Many REALTORS®
routinely provide a wide variety of additional value added services
that are as varied and unique as the nature of each transaction.
By the same token,
some transactions may not require some of these steps to be equally
successful. However, most would agree that given the unexpected
complications that can arise, it's far better to know about a step
and make an intelligent, informed decision to skip it, than to not
know the possibility even existed. Depending on the transaction,
some may take minutes, hours, or even days to complete, while some
may not be needed.
More importantly,
they reflect the level of skill, knowledge and attention to detail
required in today's real estate transaction, underscoring the
importance of having help and guidance from someone who fully
understands the process--a REALTOR®.
And never forget
that REALTORS® are pledged to uphold the stringent, enforceable
tenets of the REALTOR® Code of Ethics in their professionals
dealings with the public. Not every real estate licensee holds
REALTOR® membership. Make sure yours does!
