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.
For Buyers -
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. Most lenders -- banks and mortgage companies -- offer
limited choices.
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,
and it will take some investigation by your agent to find all
available properties.
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?
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.
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. Your agent,
title company or attorney can help you resolve issues that might
cause problems at a later date.
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.
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 some areas, the title or 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.
For Sellers -
Selling of 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.
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.
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.
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.
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).
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.
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®. They proudly display
the "REALTOR®" logo on the business card or 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 reports that 84% of home buyers would use the
same REALTOR® again.
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 $100,000. If you had a
$100,000 income tax problem, would you attempt to deal with it
without the help of a CPA? If you had a $100,000 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®!
Casey
Baird / Office 615-778-1818
/ Keller Williams
Realty / 9175 Carothers Pkwy
Ste. 110 / Franklin TN
37067 / Lic.
00280146 / Each office is independently owned
and
operated.
