real estate basics

	What a Realtor Can Do for You

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, Equity Nation 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. Additionally...

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 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 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.

 

	Why Use a Realtor?

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or 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 reports that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. 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:

1. Your REALTOR® can help you determine your buying power

2. Your REALTOR® has many resources to assist you in your home search.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property.

4. Your REALTOR® can help you negotiate.

5. Your REALTOR® provides due diligence during the evaluation of the property.

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

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

8. 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.

9. Your REALTOR® markets your property to other real estate agents and the public.

10. Your REALTOR® will know when, where and how to advertise your property.

11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position.

12. Your REALTOR® can help close the sale of your home.

    
    

 

	Who Represents You?

Here's a scenario:

You meet a really nice agent at an open house named Clyde. Even though Clyde’s house is not right for you, he tells you he has others to show you that fit your needs exactly. You spend an hour or so with Clyde looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Clyde directly how much cash you have and how high will you go? What does Clyde say?

Here's the answer: Unless you have signed a "Buyer Agency Agreement" with Clyde making him your buyer agent, he is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, he has a fiduciary obligation to the seller to disclose to him any information he has that might "promote or protect his interest" in the transaction. Guess what? Clyde has that information.

The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want.

Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller's agent?

1. Make sure that the agent you are working with has agreed, in writing, to represent you as a "Buyer's Agent." This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even FSBOs, without involving your buyer's agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.

2. Never say anything to anybody unless you would be willing to have that information repeated into a seller's ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.

   
   

 

	What is a REALTOR® ?

A real estate agent is a REALTOR® when he or she is a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate® -- the world's largest professional association.

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.

Founded in 1908, NAR has grown from its original nucleus of 120 to today's 720,000 members. NAR is composed of residential and commercial REALTORS®, who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. Members belong to one or more of some 1,700 local associations/boards and 54 state and territory associations of REALTORS®. They can join one of our many institutes, societies and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections.

REALTORS® are pledged to a strict Code of Ethics and Standards of Practice. Working for America's property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property.