Sunshine Plaza 790 Pittsburgh Road - Suite 1 Butler, PA 16002-4032 Office: (724) 586-2222 Fax: (724) 586-2223 Email: kre@kre.com . |
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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-your-self' 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.
Buying Real Estate
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, were
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.
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 ands 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.
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®!