What Can a
REALTOR® Do For You
Choose
a REALTOR® to Sell Your Home
Who is a REALTOR®?
How
to evaluate an agent
What a REALTOR® will do for you
Why Use a REALTOR®
The
REALTOR® 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, REALTORS® have taken additional steps to become
members of the local board of REALTORS® and have agreed to act under and adhere
to a strict Code of Ethics. Plus...
- A
REALTOR® can help you determine how much home you can afford. Often a
REALTOR® can suggest ways to accrue the down payment and explain
alternative financing methods.
- A
REALTOR®, 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
REALTOR® can usually research your housing needs in advance through a
Multiple Listing Service--even if you are relocating from another city.
- A
REALTOR® 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
REALTOR® often can suggest simple, imaginative changes that make a home
more suitable for you and improve its utility and value.
- A
REALTOR® 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.
Once you've decide
to sell your home, finding a REALTOR® is the next step in the process. In
making this important decision you should understand:
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Who
is a REALTOR® |
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How
to evaluate an agent |
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What
a REALTOR® will do for you |
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Selling
on your own |
If you're not in a "must
sell" situation (job transfer, career opportunity, family upheaval,
financial hardship), but rather in an "elective" one, you may want to
consider adding on to your current home (if you need more space) or refinancing
to lower monthly mortgage costs (if finances are a concern).
The terms agent,
broker and REALTOR® are often used interchangeably, but have very different
meanings. For example, not all agents (also called salespersons) or brokers are
REALTORS®. Learn who is a REALTOR® and the reasons why you should use one. As
a prerequisite to selling real estate, a person must be licensed by the state in
which they work, either as an agent/salesperson or as a broker. Before a license
is issued, minimum standards for education, examinations and experience, which
are determined on a state by state basis, must be met. After receiving a real
estate license, most agents go on to join their local board or association of
REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world's largest
professional trade association. They can then call themselves REALTORS®. The
term "REALTOR®" is a registered collective membership mark that
identifies a real estate professional who is a member of the NATIONAL
ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in
many cases goes beyond state law). In most areas, it is the REALTOR® who shares
information on the homes they are marketing, through a Multiple Listing Service
(MLS). Working with a REALTOR® who belongs to an MLS will give you access to
the greatest number of homes.
Without any
obligation, you can invite local REALTORS® to visit your home and give you a
"listing presentation" about why they're the best ones to market it
for you. Two to three presentations will probably give you a good opportunity
for choice. A listing presentation includes having the REALTOR® review with you
the reasons why you should list with that particular individual, and providing
you with information that will assist you in making initial decisions about
selling your home. Recent laws in every state have defined the duties of someone
specifically retained as a real estate agent. Most states require a real estate
agent to explain his or her role at the outset of any conversation. A
professional agent will promptly provide this disclosure.
The following are important questions to ask a potential agent:
- Are
you a REALTOR®?
- Do
you have an active real estate license in good standing. To find this
information, you can check with your state's governing agency. To
verify a Connecticut real estate license
- Do
you belong to the Multiple Listing Service (MLS) and/or a reliable online
home buyer's search service? Multiple Listing Services are cooperative
information networks of REALTORS® that provide descriptions of most of
the houses for sale in a particular region.
- If
there's no nearby MLS, how often do you cooperate with other local brokers
on a sale?
- What
have you listed or sold in this neighborhood lately?
- Do
you cooperate with buyers' brokers?
And in addition to the
criteria mentioned above, there are number of very important reasons you will
typically prefer to work with a REALTOR®. Among them are the fact that they
adhere to the National Association of REALTORS® highest standards of ethical conduct and professional
training.
There are many
important reasons to use a REALTOR®. Some of the duties your REALTOR® will
perform for you include:
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Walking
through the process of selling your home from beginning to end |
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Providing
comparable information about the prices for which other properties have
sold and analyzing data for you to gain a true comparison |
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Sharing
information about your home through the Multiple Listing Service and on
the Internet |
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Placing
advertisements for your home |
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Fielding
phone calls |
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"Qualifying"
potential buyers to make sure they would be financially able to buy your
property |
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Negotiating
the sales contract |
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Complying
with the disclosures required by law |
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Providing
you with an estimate of the closing costs you will incur |
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Helping
you prepare for a smooth closing of the transaction. |
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®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen
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 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.
- Your REALTOR® 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 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 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 REALTOR®, title company or
attorney can help you resolve issues that might cause problems at a later
date.
- Your REALTOR® can help you in understanding different financing options
and in identifying qualified lenders.
- Your REALTOR® can guide you through the closing process and make sure
everything flows together smoothly.
- When selling your home, your REALTOR® 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.
- Your REALTOR® markets your property to other real estate agents and the
public.
Often, your REALTOR® can recommend repairs or cosmetic work
that will significantly enhance the salability of your property. Your REALTOR®
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
REALTOR® 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.
- Your REALTOR® 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, family
and personal contacts. When a property is marketed with the help of your
REALTOR®, you do not have to allow strangers into your home. Your
REALTOR®
will generally prescreen and accompany qualified prospects through your
property.
- Your REALTOR® 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 REALTOR® can help you write a legally binding,
win-win agreement that will be more likely to make it through the process.
- Your REALTOR® 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 REALTOR® is the best person to objectively help you resolve
these issues and move the transaction to closing (or settlement).
Litchfield
County Board of REALTORS®, Inc.
21 Prospect Street, Suite E
Torrington CT 06790
Phone: 860-482-9816
Fax: 860-496-7416
Disclaimer
- Please Read!
June 14, 2007