Can a real
estate agent really help me in buying and selling property? The answer is
YES!
When you're ready to think about buying or selling your property, you
need to ask yourself the following questions: Do you have the time,
energy, sources of information, and contacts to do the job yourself? If
you were one of the 'do-it-yourself' people, would the results be as good
or better than they would be if you had professional assistance? Would it
have gone smoother? Would it have given you more personal time? Would you
have purchased for less, or sold for more, if a real estate agent was
involved? Read the following information and learn how a real estate agent
can help you understand everything you need to know about a real estate
transaction.
The Buying Process
The process of buying a home or investment generally starts with
determining your buying power; that is, your financial reserves plus your
borrowing capacity. If you give a real estate agent some basic information
about your available savings, income and current debt, they can refer you
to lenders best qualified to help you. Most lenders -- banks and mortgage
companies -- offer limited choices.
Finding
Once you know how much you can and want to invest, the next step is to
find the properties that most nearly fit your needs. This is the time to
choose a real estate licensee. When picking a real estate agent look for
one who is also a REALTORŪ. A REALTORŪ is a member of the NATIONAL
ASSOCIATION OF REALTORSŪ, a real estate trade association, and all
members agree to abide by a 17 article Code of Ethics. A REALTORŪ has
many resources to assist you in that 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.
Selecting
Your job is to make the final selection of the right property for you.
This is when excitement and emotion run high. Your real estate agent can
assist you in the selection process by providing objective information
about each property. Agents who are REALTORSŪ have access to a variety of
informational resources. REALTORSŪ 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?
Negotiating
There are a myriad of 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 also 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.
Due Diligence
With a negotiated agreement in hand, it is time to complete 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 agent 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 agent, title company or attorney can help you resolve issues that
might cause problems at a later date.
Financing
As soon as you are reasonably sure the property is right for you, the
process of obtaining financing begins. Your agent can help you in
understanding different financing options and in identifying qualified
lenders.
Closing or Settlement
Finally, there is the closing, or settlement, as it is known in different
parts of the country. Every area has its own unique customs. In some
areas, the title or escrow company will handle this process. In other
parts of the country, an attorney does it all. Again, your real estate
agent can guide you through this process and make sure everything flows
together smoothly.
Selling Real Estate
Pricing
This process generally begins with a determination of a reasonable asking
price. Your real estate agent 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.
Marketing
The next step is a marketing plan. Often, your agent can recommend repairs
or cosmetic work that will significantly enhance the salability of the
property. Marketing includes the exposure of 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 agent 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.
Advertising is part of marketing. The choice of media and frequency of
advertising depends a lot on the property and specific market. For
example, in some areas, newspaper advertising generates phone calls to the
real estate office but statistically has minimum effectiveness in selling
a specific property. Overexposure of a property in any media may give a
buyer the impression the property is distressed or the seller is
desperate. Your real estate agent will know when, where and how to
advertise your property.
There is a misconception that advertising sells real estate. Studies
show that 82% of real estate sales are the result of agent contacts
through previous clients, referrals, friends and family, and personal
contacts.
Security
When the property is marketed with the agent help, you do not have to
allow strangers into your home. Agents will generally pre-screen and
accompany qualified prospects through your property.
Negotiating
The negotiation process deals with much the same issues for both buyers
and sellers, as noted above under the buying process. Your agent 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 agent can help you write a legally binding, win-win
agreement that will be more likely to make it through the process.
Monitoring, Renegotiating and Closing
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 agent is the best person to
objectively help you resolve these issues and move the transaction to
closing (or settlement).
How Do Real Estate Agents Get Paid?
Real estate agents or brokers are generally paid through the sales
commission paid by the seller when a transaction closes. Agents have
expenses and financial obligations just like you, so it will be to your
mutual benefit if you choose a real estate agent and stick with that
person. The agent will respect your loyalty and respond with a sincere
commitment to you.
Tel:
(021) 553 4748 or (021) 5721023