The North Shore - Barrington Association of Realtors

What A REALTORŽ Can Do For You

The REALTORŽ you work with could be one of your most valuable resources. Unlike many real estate agents who are simply licensed by their state to do business, REALTORSŽ have taken additional steps to become members of the local board of REALTORSŽ and have agreed to act under and adhere to a strict Code of Ethics. Plus...

A REALTORŽ can help you determine how much home you can afford. Often a REALTORŽ can suggest ways to accrue the down payment and explain alternative financing methods.
A REALTORŽ, in addition to knowing the local money market, also can tell you what personal and financial data to bring with you when you apply for a loan.
A REALTORŽ is already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.
A REALTORŽ can usually research your housing needs in advance through a Multiple Listing Service--even if you are relocating from another city.
A REALTORŽ can show you only those homes best suited to your needs--size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences.
A REALTORŽ often can suggest simple, imaginative changes that make a home more suitable for you and improve its utility and value.
A REALTORŽ is sensitive to the importance you place on this major commitment you are about to make. Look for a real estate professional to facilitate negotiation of a win-win agreement that will satisfy both you and the seller.

Why Use a REALTORŽ?
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORSŽ are properly called REALTORSŽ. They proudly display the REALTOR "Ž" logo on the business card or other marketing and sales literature. REALTORSŽ are committed to treat all parties to a transaction honestly. REALTORSŽ 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 REALTORŽ again.

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 REALTORŽ.

But if you're still not convinced of the value of a REALTORŽ, here are a dozen more reasons to use one:

1. Your REALTORŽ can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTORŽ 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.

2. Your REALTORŽ 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.

3. Your REALTORŽ can assist you in the selection process by providing objective information about each property. Agents who are REALTORSŽ have access to a variety of informational resources. REALTORSŽ 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?

4. Your REALTORŽ can help you negotiate. There are myriad 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 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.

5. Your REALTORŽ provides due diligence during 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 REALTORŽ 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 REALTORŽ, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTORŽ can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTORŽ can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTORŽ 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.

9. Your REALTORŽ markets your property to other real estate agents and the public. Often, your REALTORŽ can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTORŽ markets 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 REALTORŽ 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 REALTORŽ Code of Ethics requires REALTORSŽ to utilize these cooperative relationships when they benefit their clients.

10. Your REALTORŽ will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORSŽ studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTORŽ, you do not have to allow strangers into your home. Your REALTORŽ will generally prescreen and accompany qualified prospects through your property.

11. Your REALTORŽ 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 REALTORŽ can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTORŽ can help close the sale of your home. 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 REALTORŽ is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).