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
Finding
Selecting
Negotiating
Due Diligence
Financing
Closing or Settlement
Selling Real Estate
Pricing
Marketing
Security
Negotiating
Monitoring, Renegotiating and Closing
How Do Real Estate Agents Get Paid?
Why A REALTOR®?
Using a REALTOR®
You Be the Judge!
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.
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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. It will take some investigation by your agent to find all available
properties.
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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?
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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.
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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. The title company can help you resolve issues that might cause problems
at a later date.
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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.
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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 California, the
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.
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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.
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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.
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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.
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 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.
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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).
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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.
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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®. 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.
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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 $200,000. If you had
a $200,000 income tax problem, would you attempt to deal with it without the help of a
CPA? If you had a $200,000 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®!
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IF YOU NEED MORE INFORMATION CONTACT ME
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