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:
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. 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. 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? 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. 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. 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.
