Why Use a REALTOR?

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You may wonder why you should use a REALTOR®. The information provided below attempts to answer that question.

If you believe that a real estate agent and a REALTOR® are the same thing, they are not. Only real estate agents who are members of the NATIONAL ASSOCIATION OF REALTORS® can call themselves REALTORS®. Real estate agents who are designated as REALTORS® have subscribed to a strict code of ethics, meaning that they will handle your transaction honestly and that they have more knowledge of the process of buying and selling real estate.

Because real estate transactions are one of the largest financial investments you will probably make, you should not enter a transaction blindly. In today’s market, real estate transactions typically cost more than $100,000. If you had a $100,000 tax problem, would you attempt to solve it without the assistance of a CPA? If you had a $100,000 legal issue, would you resolve it without the help of an attorney? The question holds true for real estate. If you were considering a real estate purchase for $100,000 or more, would you attempt to negotiate a deal without the assistance of a REALTOR®? Considering the small upside cost versus the large downside risk, it would be unwise to conduct a real estate transaction without a REALTOR®.

If you remain unconvinced about the benefits of using a REALTOR®, consider the following:

  1. A REALTOR® can help you determine your buying power. Your buying power equals your financial reserves plus your borrowing capacity. Once you share basic information about your financial situation with your REALTOR®, he or she can determine which lenders are best qualified to help you.
  2. A REALTOR® has many resources. He or she can find properties that match your interests that may not be actively advertised in the market.
  3. A REALTOR® will provide objective information about each property. REALTORS® have access to information about zoning, communities, schools, and more. They can answer two, important questions: “Will this property provide the environment you want for a home or investment?” and “Will this property have resale value when you are ready to sell?”
  4. A REALTOR® can help you negotiate. Negotiating factors include more than the price of a property. They also include financing, terms, date of possession, and the inclusions or exclusion of repairs. Your negotiated agreement should include a period of time in which you can assess the property before being bound to complete the purchase. A REALTOR® can recommend which inspections and investigations are needed or required.
  5. A REALTOR® provides due diligence during the evaluation of a property. Depending on the property and the area, different inspections and evaluations will need to occur. A REALTOR® can recommend qualified, responsible professionals to conduct these inspections. A REALTOR® can also help you to assess the property’s title, which is often confusing due to the status of past owners and rights of access. Once you have this information, a REALTOR® can help you resolve any issues that might cause problems at a later date.
  6. A REALTOR® can help you understand different financing options and recommend qualified lenders.
  7. A REALTOR® can guide you through the closing process.
  8. A REALTOR® can provide up-to-date information about the market and the price, financing, terms, and condition of other properties. This information is particularly helpful if you are trying to sell property. Knowing these factors will help you to sell your property more quickly at the best price and with less hassle.
  9. A REALTOR® markets your property to other real estate agents and the public. He or she acts as a marketing coordinator, making suggestions regarding repairs and cosmetic work that will enhance the salability of your property and sharing information about your property within a cooperative marketing network.
  10. A REALTOR® knows when, where, and how to advertise your property.
  11. A REALTOR® provides security. You do not have to allow strangers into your home; a REALTOR® will pre-screen potential buyers and accompany them when they wish to visit your property.
  12. A REALTOR® can objectively evaluate a buyers’ proposals without compromising your market position. A REALTOR® can help you write a legally-binding, win-win agreement that is more likely to make it through the negotiation process.
  13. A REALTOR® can help close the sale on your property. Unexpected repairs or issues with the title may arise. A REALTOR® can help resolve these problems and move the transaction to closing.

Information adapted from the NATIONAL ASSOCIATION OF REALTORS®