Why Use a REALTOR® When Buying a Home?
A real estate agent can help you
understand everything you need to know about the home buying process.
Not all real estate licensees are the
same; only those who are members of the NATIONAL ASSOCIATION OF REALTORS®
are properly called REALTORS®. They proudly display the REALTOR "
®" trademark on their business cards and 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 reported that 84% of home buyers would use the same REALTOR®
again.
Real estate transactions involve one
of the biggest financial investments of most people’s lifetime. Transactions
today usually exceed $250,000. If you had a $250,000 income tax problem, would
you attempt to deal with it without the help of a certified professional
accountant? If you had a $250,000 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 wise to work with a professional REALTOR®
when you are buying a home.
If you're still not convinced of the
value of a REALTOR®, here are 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 with negotiations and inspections.
There are many negotiating factors, including but not limited to price,
financing, terms, date of possession and often the inclusion or exclusion of
repairs and furnishings or appliances. The purchase agreement should allow
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 property evaluation.
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 property title. 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 search company or attorney can help you resolve
issues that might cause problems at a later date.
6.
Your REALTOR®
can help you understand different financing options and identify qualified
lenders.
Your REALTOR®
can guide you through the closing process and make sure everything flows
together smoothly.
