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The
purchase of a home is one of the most complex, high-risk, and expensive
transactions most people will ever go through, yet approximately 40 to 50
percent of home buyers go to the closing table without a representative or
advocate on their side. This startling research performed in separate
studies by the National Association of REALTORS® and the National
Association of Exclusive Buyer's Agents, shows that many buyers do not
understand the importance of having an advocate. Without someone
representing their interests, how will these buyers ever know if they
found the right home at the right price?
Are you an
un-represented buyer? Like half of all home buyers in the nation,
according to REALTOR.com you may be searching the Internet for information
to save you time and money, including shopping for loans and other
services. Yet, you may not be using the one tool that can help you get
into the home of your choice at the price you want to pay - a REALTOR®.
Why should you hire
a Realtor? There are ten good reasons and many more why a real estate
professional can make an important difference when you buy a home:
1. Realtors Are Real Estate Specialists.
Realtor is commonly used as a generic word for real estate broker or
agent, but only a member of the National Association of Realtors can be
called a Realtor. The association provides advanced educational
opportunities to its members, enabling them to offer accredited
sub-specialties such as buyer's representation (ABR), residential real
estate expertise (CRS), or Internet readiness (e-PRO) to the public. Many
excellent Realtors do not have extra certifications and designations, but
if you should notice letters next to an agent's name, be sure to inquire
about its meaning. For their own reasons, many real estate professionals
choose not to join the professional association. If you would like to work
with an agent who is not a Realtor, ask about the agent's experience and
specialties.
2. Realtors Lower Your Risk.
When you have a Realtor as an advocate, you share some of the risk of home
buying. Otherwise, it's buyer beware. You are paying the agent to assist
you, advise you, and help you navigate the transaction legally and safely.
Your agent will make sure you take appropriate steps to protect yourself.
Incredibly, many states do not have laws or regulatory bodies in place
that protect all aspects of home buying. Only 20 states currently license
or certify home inspectors, for example. Further, these and other
professionals are only liable in civil suits for the amount of their fees,
not for any costs incurred by the buyer for problems or repairs that were
undetected before the closing. If your agent suggests that you get a
structural inspection, do so for your own protection. She or he will know
how an inspection should be performed and will attend the inspection
alongside you.
3. Realtors Work For You At Their Own Risk.
It is hard to name any other profession whose members work on a
contingency basis. Even attorneys charge by the hour except for some
high-risk lawsuits. You don't typically pay for any services up front with
an agent. That means your agent incurs the costs of doing business on your
behalf until you find and close your home. Therefore, it's in your agent's
best interest to work quickly, diligently, and use all his or her
resources to help you meet your goals. Some agents will ask you to sign a
buyer's representation agreement which allows him or her to represent your
interests. Be sure to ask what the advantages are, and what your release
options are. Interview several agents before making your choice and
compare their representation styles. Make sure you understand how the
agent you choose will work with you, according to the laws and regulations
of your state.
4. Realtors Understand The Current Market.
Real estate professionals have house-by-house, street-by-street, and
market-by-market experience. Their experience is invaluable and can't be
learned overnight. Realtors who have weathered the pendulum swing between
buyers' markets and sellers' markets know that the real estate market can
turn abruptly. Rising and falling interest rates affect the number of
available homes for sale and their prices within weeks or days. All it
takes is the entrance or exit of a major employer, and thousands of homes
in a neighborhood can be affected. As neighborhood experts, experienced
brokers and agents can help you with home buying strategies and proposals
that will get the price and terms you want.
5. Realtors have inventory.
Do you want to find a home quickly? With a Realtor by your side, you will.
According to The National Association of Realtors, over four-fifths of
existing homes in the United States are represented by real estate
brokers. So are 70 percent of new homebuilders and their products,
according to NewHomeNetwork.com. Realtors cooperate with each other
through an organization called the Multiple Listing Service (MLS). The MLS
has the current broker-represented properties for sale in its database.
Your agent can also show you homes outside of the MLS inventory, including
for-sale-by-owner homes, new builder homes, and institution-operated
homes. However, no Realtor can be expected to show you this additional
inventory without a representation agreement and an assurance of being
paid at closing.
6. Realtors Have Up-to-the-minute Information.
MLS data entry can take from one to 10 days, depending on the listing
agent, his or her broker, and the MLS. By the time the home is posted on
the Internet, it could already be sold. Clever agents don't wait that long
to find a home for their buyers; they network with each other. Your agent
will tell other agents about you and your wish list in exchange for
information about upcoming homes for sale. That's how many homes are
bought and sold in a hot seller's market, without a sign ever going into
the yard. If you want to be the buyer positioned to make first and best
offers on these homes, hire an agent.
7. Realtors Understand The Complexity Of The
Transaction.
Less than a decade ago, a home could be bought with a two-page contract.
Now consumer-mandated seller's disclosures, environmental and structural
reports, and other liabilities have turned the home transfer into a
complicated minefield. Realtors work with contracts daily, and can fully
understand which points are harmful and beneficial to you. From helping
you make a reasonable offer, to providing for the discovery and disclosure
of material facts, your agent can also interpret information for you. If
you found out the neighbor next door to the house you are buying just
built a new fence, what does that mean? You won't have to replace the
fence on that side for a long time. To your agent, it means something
else. She or he will quickly get a survey ordered, to assure that the new
fence doesn't encroach on your new property.
8. Realtors Work For You...And The Transaction.
Your agent not only represents your interests but also works on behalf of
the transaction. Does that seem like a conflict of interest? It isn't.
Buyers and sellers are natural adversaries. You want to buy for the least
price, and the seller wants the best price. Agents must be skilled
negotiators to keep bargaining chips from turning into deal-breakers. As
the buyer, remember that you are the one in control. You can instruct your
agent how far to go in negotiations on your behalf. One day, you'll be
glad your agent talked you out of walking away because the seller wouldn't
leave the chandelier.
9. Realtors Offer Flexible Services.
Realtors' services are somewhat negotiable. The more risk you ask your
agent to take, the higher the fees will be, so the more your broker serves
as your advocate, the more you can expect to pay. New ideas are coming to
the real estate industry, which allow the consumer to pick and choose real
estate services based on what brokers offer in the marketplace. Some offer
only full service brokerage services. Others offer menu services and are
paid accordingly. If you want to save some money, be prepared to pay more
up front and shoulder some of the responsibilities yourself. Perhaps you
found the home you want on your own, and you only want an agent to
represent you on the contract and at closing. Some agents will accommodate
you, but keep in mind that their liability may only be limited to the
actual job performed.
10. Realtors Are Homeowner Advocates.
Do you like the idea of deducting your mortgage interest from your income
tax? Paying no capital gains when you sell your home up to $250,000 if you
are single and $500,000 if you are married? If so, you can thank the only
lobbying group in the nation that looks out for the interests of
homeowners - The National Association of Realtors. Every year, the Realtor
PAC perches on Capitol Hill and swoops down on legislators who try to
overturn these generous government-sponsored homeowner benefits. The
result is well worth it. These initiatives keep housing more affordable,
enabling more buyers than ever before to move into a home of their own.
Thanks in part to Realtors, more than 67 percent of the population are
enjoying the benefits of owning a home.
One of the greatest
endorsements you have for using the services of a Realtor is from your
lender. Lenders are willing to finance agent commissions for buyers in the
mortgage loan. That should tell you how important it is that you get
proper representation. Many lenders agree you may get a better price for
your home and better terms by having an advocate. Put a Realtor to work
for you today.
You'll soon be in
the home of your dreams! |