Why You Should Work With a REALTOR®
Not
all real estate practitioners are REALTORS®. The term REALTOR® is a registered
trademark that identifies a real estate professional who is a member of the
NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics.
Here are five reasons why it pays to work with a REALTOR®.
1. You’ll have an
expert to guide you through the process. Buying or selling a home usually requires disclosure
forms, inspection reports, mortgage documents, insurance policies, deeds, and
multi-page settlement statements. A knowledgeable expert will help you prepare
the best deal, and avoid delays or costly mistakes.
2.
Get objective information and opinions. REALTORS® can provide
local community information on utilities, zoning, schools, and more. They’ll
also be able to provide objective information about each property. A
professional will be able to help you answer these two important questions:
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?
3.
Find the best property out there. Sometimes the property you are seeking is
available but not actively advertised in the market, and it will take some
investigation by your REALTOR® to find all available properties.
4.
Benefit from their negotiating experience. There are many negotiating factors,
including but not limited to price, financing, terms, date of possession, and
inclusion or exclusion of repairs, furnishings, or equipment. In addition, 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.
Property marketing power. Real estate doesn’t
sell due to advertising alone. In fact, a large share of real estate sales comes
as the result of a practitioner’s contacts through previous clients, referrals,
friends, and family. When a property is marketed with the help of a REALTOR®, you
do not have to allow strangers into your home. Your REALTOR® will generally
prescreen and accompany qualified prospects through your property.
6. Real estate has its
own language.
If you don’t know a CMA from a PUD, you can understand why it’s important to
work with a professional who is immersed in the industry and knows the real
estate language.
7. REALTORS® have done
it before.
Most people buy and sell only a few homes in a lifetime, usually with quite a
few years in between each purchase. And even if you’ve done it before, laws and
regulations change. REALTORS®, on the other hand, handle hundreds of real
estate transactions over the course of their career. Having an expert on your
side is critical.
8. Buying and selling
is emotional.
A home often symbolizes family, rest, and security — it’s not just four walls
and a roof. Because of this, home buying and selling can be an emotional
undertaking. And for most people, a home is the biggest purchase they’ll ever
make. Having a concerned, but objective, third party helps you stay focused on
both the emotional and financial issues most important to you.
9. Ethical treatment. Every member of the NATIONAL
ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of
Ethics, which is based on professionalism and protection of the public. As a
customer of a REALTOR®, you can expect honest and ethical treatment in all
transaction-related matters. It is mandatory for REALTORS® to take the Code of
Ethics orientation and they are also required to complete a refresher course
every four years.
Questions to Ask When Choosing a REALTOR®
Make
sure you choose a REALTOR® who will provide top-notch service and meet your
unique needs.
1. How long have you
been in residential real estate sales? Is it your full-time job? While experience is
no guarantee of skill, real estate — like many other professions — is mostly
learned on the job.
2. What designations
do you hold?
Designations such as GRI and CRS® — which require that agents take additional,
specialized real estate training — are held by only about one-quarter of real
estate practitioners.
3. How many homes did
you and your real estate brokerage sell last year? By asking this
question, you’ll get a good idea of how much experience the practitioner has.
4. How many days did
it take you to sell the average home? How did that compare to the overall
market?
The
REALTOR® you interview should have these facts on hand, and be able to present
market statistics from the local MLS to provide a comparison.
5. How close to the
initial asking prices of the homes you sold were the final sale prices? This is one indication
of how skilled the REALTOR® is at pricing homes and marketing to suitable
buyers. Of course, other factors also may be at play, including an
exceptionally hot or cool real estate market.
6. What types of
specific marketing systems and approaches will you use to sell my home? You don’t want someone
who’s going to put a For Sale sign in the yard and hope for the best. Look for
someone who has aggressive and innovative approaches, and knows how to market
your property competitively on the Internet. Buyers today want information
fast, so it’s important that your REALTOR® is responsive.
7. Will you represent
me exclusively, or will you represent both the buyer and the seller in the
transaction?
While it’s usually legal to represent both parties in a transaction, it’s
important to understand where the practitioner’s obligations lie. Your REALTOR®
should explain his or her agency relationship to you and describe the rights of
each party.
8. Can you recommend
service providers who can help me obtain a mortgage, make home repairs, and
help with other things I need done? Because REALTORS® are immersed in the
industry, they’re wonderful resources as you seek lenders, home improvement
companies, and other home service providers. Practitioners should generally recommend
more than one provider and let you know if they have any special relationship
with or receive compensation from any of the providers.
9. What type of
support and supervision does your brokerage office provide to you? Having resources such
as in-house support staff, access to a real estate attorney, and assistance
with technology can help an agent sell your home.
10. What’s your
business philosophy? While
there’s no right answer to this question, the response will help you assess
what’s important to the agent and determine how closely the agent’s goals and
business emphasis mesh with your own.
11. How will you keep
me informed about the progress of my transaction? How frequently? Again, this is not a
question with a correct answer, but it reflects your desires. Do you want
updates twice a week or do you not want to be bothered unless there’s a hot
prospect? Do you prefer phone, e-mail, or a personal visit?
12. Could you please
give me the names and phone numbers of your three most recent clients?
Ask recent clients if they would work with this REALTOR® again. Find out whether they were pleased with the communication style, follow-up, and work ethic of the REALTOR®.
Take the Stress Out of Homebuying
Buying a home should be fun, not stressful. As you look for your dream home,
keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate
agent who you connect with. Home buying is not only a big financial commitment, but
also an emotional one. It’s critical that the REALTOR® you chose is both highly
skilled and a good fit with your personality.
2. Remember, there’s no “right” time to
buy, just as there’s no perfect time to sell. If you find a home now, don’t
try to second-guess interest rates or the housing market by waiting longer —
you risk losing out on the home of your dreams. The housing market usually doesn’t
change fast enough to make that much difference in price, and a good home won’t
stay on the market long.
3. Don’t ask for too many opinions.
It’s natural to want reassurance for such a big decision, but too many ideas from
too many people will make it much harder to make a decision. Focus on the wants
and needs of your immediate family — the people who will be living in the home.
4. Accept that no house is ever perfect.
If it’s in the right location, the yard may be a bit smaller than you had
hoped. The kitchen may be perfect, but the roof needs repair. Make a list of
your top priorities and focus in on things that are most important to you. Let the
minor ones go.
5. Don’t try to be a killer negotiator.
Negotiation is definitely a part of the real estate process, but trying to
“win” by getting an extra-low price or by refusing to budge on your offer may cost
you the home you love. Negotiation is give and take.
6. Remember your home doesn’t exist in a
vacuum. Don’t get so caught up in the physical aspects of the house itself —
room size, kitchen, etc. — that you forget about important issues as noise
level, location to amenities, and other aspects that also have a big impact on your
quality of life.
7. Plan ahead. Don’t wait until
you’ve found a home and made an offer to get approved for a mortgage,
investigate home insurance, and consider a schedule for moving. Presenting an
offer contingent on a lot of unresolved issues will make your bid much less
attractive to sellers.
8. Factor in maintenance and repair
costs in your post-home buying budget. Even if you buy a new home, there
will be costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse
is inevitable and will probably pass. Buying a home, especially for the
first time, is a big financial commitment. But it also yields big benefits. Don’t
lose sight of why you wanted to buy a home and what made you fall in love with
the property you purchased.
10. Choose a home first because you love
it; then think about appreciation. While