Why Use a REALTOR® When
Buying a Home?
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.
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