By Greg Ford
Allison was looking to buy a condo. She found one that she really wanted. The seller would provide owner financing. He said she could get the best deal if she did not use a real estate agent. Allison really wanted it and they signed a contract. She completed the down payment, and closed on the condo. Everything was going well. But about 2 years later she was notified of a lay off from her job. Allison immediately made the seller aware of the situation. Then was absolutely shocked when he said she could lose the condo to him once her payments reached 30 days behind. What Allison did not realize is that the contract she signed to purchase the condo was a land contract which does not transfer legal title to her until the full sale price amount is paid.
Marc and June were looking for a bigger and saw one June really wanted. However they need to sell their current home first. They made a decision to not use a realtor. After 3 months their house was still up for sale with no offers. The totals of the cost from newspaper ads, and keeping the house up on a very popular home website was really starting to add up. Also adding to this, they were taking a hit in their pay every time one of them had to leave work, to show the home. Then the house June wanted was sold. That really discouraged her. She did not want to keep trying to sell, and would cut the lost. They took the house off everything. They may try to sell again later.
Scenarios like these happen all the time each year in the U.S. These stories are the reason for this article. The objective of this information is to give an overview of the many advantages and benefits of using a real estate professional when buying, or selling a home.
To begin with… We would like to say that there are lots of people who do successfully sell their homes for sale by owner, and successfully purchase homes without a realtor. But the statistics clearly show that overwhelming majority are unable to. And in addition, consumer feedback shows they really regret the decision to not be represented by a real estate agent.
In Allison’s case… The simple fact is that any brand new agent, just out of real estate school, with hardly any experience, would have quickly recognized this was a Land Contract. Land Contracts are legal and gives all of the benefits of ownership, and all the feelings of ownership, except the most important thing of all, legal title. And, a realtor would have immediately notice that very severe late payment clause. Any real estate agent would have advised Allison, if not begged her, to seriously think about this deal before making any decisions.
In Marc and June’s case… They would have not spent one dime on advertising. They would not have missed anytime from work. They would not have to deal with showing the home to strangers. And while no one can make absolute guarantees, they would have a significantly better chance of selling their home. June would have gotten that house she really wanted.
Buying, or selling, a house is a major investment in time and money. It is looked at as one of the biggest events in life. The knowledge, experience, and expertise of a real estate agent are a very inestimable asset.
FOR HOME BUYERS: A big reason why many will avoid real estate agents is that unfortunately most sales related jobs have a negative stereotype. Every thing from a car salesmen, to insurance sales, to the lady behind the fragrance counter in a department store. Most sales people are thought of as rude, pushy, overbearing, untruthful, will pressure you, will say anything to get a commission, etc.
But real estate agents are much more than just salespeople. They are specific agents, working for the buyer, acting on their behalf as their legal representative to assist with the purchase of a home. Real estate agents do not sell the home. It is owner of the home who is the one selling it.
Real estate agents are advocates, consultants, representatives, advisers, mediators, social workers, guidance counselors, credit repair specialist, or anything that a home buyer needs to accomplish their goal of owning a home. The real estate agent will literally take you by the hand, and lead you from beginning, to closing, if necessary.
These are just a few of the benefits of using a real estate agent when buying a home:
* MARKET KNOWLEDGE: Your realtor can answer questions about the current market, home prices, interest rates and other home buying issues. They can also refer you to other reputable specialists whom you will need, including a home inspector or a lender
* AVAILABLE HOMES: Agents use the Real Estate Information Network (REIN) also still known as the MLS. It is a database that contains every single house listed for sale. It is still the source for the most current and reliable information on listed homes. All the other popular home websites is either directly, or indirectly, receiving their data from this source. Internet searches, open houses, and newspaper ads just will not have all of the homes that are for sale.
* FINANCING THE HOME: You have to figure out how you are going to pay for the house! A realtor will help you determine what you can afford. They will advise you on loan programs and sources for down payments you otherwise could never know about. They assist you on how to qualify for purchasing a home. They can recommend mortgage companies, and work with lenders on your behalf throughout the process.
* VIEWING HOMES: Real estate professionals have the expertise to assist you in narrowing your home search. Seeking only on the homes that match your features, interest, and price range. This can be an invaluable time saver by eliminated homes that do not meet your criteria. The realtor is the source of important information about the home and the neighborhood itself: how long the home has been for sale, the school system, and the home’s best features and so on. Rather than going through properties of all types, your agent can help you focus on the homes that match what you are specifically looking for.
* CONTRACTS & NEGOTIATIONS: The real estate agent has helped you find the home you want… now what? Your agent will assist you in preparing a written offer to purchase. The real estate agent will explain every paragraph to you. Your realtor will then present the offer and negotiate on your behalf. The agent can help you determine exactly what to offer, not only in price but also in other factors, such as appliances, contingencies, seller’s assistance with required closing costs, and other very important issues.
* FINANLIZING THE SALE: After everyone agrees to the contract and it is accepted, there is still a lot of work to do. Your agent continues to help you through this process. The realtor makes sure the necessary steps are taken, such as finalizing the loan, appraisals, home inspections, moisture inspections, termite inspections, performing a title search, final walk thru, deed preparation, closing, etc.
FOR HOME SELLERS: When it comes to home sellers the reasons why avoid realtors is fairly simple. They believe they will benefit from not having to pay the commission.
But there is also a basic reality that every home seller has a target amount, or a net amount, they want to accomplish on the sale of their home and leave closing with. The experience realtor can show how you can achieve this goal, and, walk away from the closing with your net amount, even with the commission calculated in.
If a real estate professional can actually accomplished this for you, then why would you not take advantage it?
In America, over 80% of all homes are sold with the assistance, and expertise, of a realtor. Even those who start out as “for sale by owners” will eventually turn to a real estate professional. They realize they need the real estate agent’s knowledge, experience, expertise, and access the realtor’s network.
Below are just of benefits to you when using a real estate agent to assist in the sale of your home:
* PRICING: During the free consultation, the very first thing a real estate agent does is to present a competitive market analysis (CMA) for the seller. This CMA is based on recent homes that have sold in your area that are similar to your home, and current market trends. It is completed with data which only a realtor, or appraiser, have access to. This is the basis for the correct recommended asking price. Getting the price right is crucial in home sales. A incorrectly high price will quickly turn buyers away. Your house will then sit on the market unsold. Furthermore, when it comes to price, statistics clearly indicate sellers who list with a realtor receive on average 20% more for their homes than for sale by owners.
* NEIGHBORHOOD KNOWLEDGE: In spite of all the daily headlines, and national news that you hear, real estate is a completely local business. Potential home buyers will know your local housing market, especially if they have a realtor representing them. This means it is very important that you also know your local residential market. A real estate agent who lives, works, and is active, in your area will know your local market. Real estate agents have access to the most accurate, and current data, for each individual neighborhood. This information are the things buyer’s care about: property taxes, schools, demographics, zoning laws, proposed projects which may effect your neighborhood, noise levels, shopping, environmental factors, and more. As a home seller, these things are equally significant, because they will affect value, and the marketability, of your home. It is part of what the real estate professional will assist you with.
* MARKETING: Now days selling a home will simply take more than putting a For Sale sign in the front yard and taking out a ad in the newspaper. Along with the CMA, the realtor will present sellers with their firm’s marketing and advertising plan. It will describe step-by-step what they will do to sell your home. It is important to point out here that marketing and advertising expenses can quickly add up. Depending on the marketing plan, and the property, the totals could easily get into the hundreds and thousands. But the real estate firm pays this expense when you list with them. Even in the event that the home does not sell, or there are reasons why you need to remove the home from the market, you still will not be responsible for any advertising expense. The realtor’s marketing campaign could include coordinating open houses, or writing and placing ads in various media. This could be print, TV advertising, radio commercials, internet websites, distributing brochures, and more. Then, there is always, showing your house to possible buyers.
* MLS and REALTOR CONTACTS: Even though there has been an explosion of numerous homes websites out there, the Multiple Listing Service (MLS), also known as Real Estate Information Network (REIN) still remains the ultimate resource for accurate and current information on every listed home that is currently for sale. In fact, most of those websites obtain their data either directly, or indirectly, from the MLS. Only real estate professionals have access to the MLS. It is also the vehicle used to advertise to other real estate agents who have buyer clients. Once a home is listed, information about it can be accessed by all the agents in the area and matched to their buyers. The viral effect is that your home is not just being promoted by your realtor… your home is being notice by every real estate agent in that MLS network. Your agent may also arrange an open house just for other real estate agents. In turn, these agents recommend the house to their buyers. A study by the National Association of REALTORS shows that 82 percent of homes are sold through an agent’s contacts.
* EFFICIENCY: Time is a extremely valuable commodity. Real estate agent do not waste precious time showing your house to just anybody who responds to the ad. Any perspective buyers are screened to ensure they are actually capable of buying your home. Realtors weed out, and eliminate, those are not in a position to purchase your home and would clearly be a waste of time. The other agents in the MLS network working with their buyers will also benefit the seller also, by only showing the house to qualified buyers.
* NEGOTIATIONS: Finding a buyer is only the end of the marketing, advertising, and home presentation. Now everything advances to another phase where the seller and the buyer must agree on price, terms, and a variety of contingencies. The real estate agent helped draft the written contracts and counter offers. They are also aware of additional legal documents that may be required in your state. They can also advise on what stipulations you should make in the contract — items that should remain in the house at closing, for example.
* ONGOING ASSISTANCE UNTIL CLOSING: It does not end once a contract is signed. After an offer has been accepted, the buyer will need to finalize their loan. Your realtor will coordinate to arrange for a home inspector, appraisal, termite inspections, moisture inspections, a title search, a real estate lawyer, preparation of the deed, as well as ensure that all repairs and stipulations in the contract are complete. Individual mortgage companies and other lending institutions can require a variety of different things before they give true final loan approval to a buyer.
After all been scheduled, coordinated, and completed, the day of closing finally arrives. The real estate agent then makes sure that is accomplished correctly. You will only have to review the documents and sign the deed. It is not even a requirement for you to be at closing.
This information was just an overview of the many benefits to having a real estate professional represent you. We hope this article has been a benefit to you, and has answered some questions.
As we stated earlier, there is much more to selling a home then putting a sign in the yard and running a newspaper ad. And, there is much more to buying a home then internet searches and riding around to find For Sale signs.
Real estate agents exist for a reason. Residential home transactions involve one of the biggest financial investments most people will ever make in their lives. And the consequences, if not done correctly, can last a lifetime.
If the commission really is the issue? Then you show know that the overwhelming majority of home sellers are able to accomplish their financial goals even with the realtor commission figured in. And, in the overwhelming majority of sales, the commission does not come from the buyer. So there is really no reason for a home buyer to not use a real estate professional. Especially a first time home buyer.
Each day, realtors helps buyers and sellers, save time, prevent problems, and avoid errors that could cost thousands.
For over 10 years HomeSaleAssistance has help thousands of people, just like you, with the purchase and sale of a residential home. Visit Us Now for Free Information and Free Assistance. Find a Realtor to help you!
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MLA Style Citation:
Ford, Greg "Why Use A Realtor When Buying Or Selling A Home?." Why Use A Realtor When Buying Or Selling A Home?. 22 Jun. 2010. uberarticles.com. 11 Feb 2016 <http://uberarticles.com/real-estate/why-use-a-realtor-when-buying-or-selling-a-home/>.
APA Style Citation:
Ford, G (2010, June 22). Why Use A Realtor When Buying Or Selling A Home?. Retrieved February 11, 2016, from http://uberarticles.com/real-estate/why-use-a-realtor-when-buying-or-selling-a-home/
Chicago Style Citation:
Ford, Greg "Why Use A Realtor When Buying Or Selling A Home?" uberarticles.com. http://uberarticles.com/real-estate/why-use-a-realtor-when-buying-or-selling-a-home/
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