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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.
7. Your REALTOR®
can guide you through the closing process and make
sure everything flows together smoothly.
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