In Today's Complex Market, a Realtor Can Be Priceless
Most of us don’t hesitate to seek the advice of professionals when making major decisions outside of our field of expertise.
We use lawyers when starting or buying businesses. We use accountants when trying to navigate the tax codes. We use doctors when seeking to manage medical conditions.
So, when buying or selling a home, which is the largest financial transaction most of us will ever make, it only makes sense to enlist the aid of a pro. After all, while buying a home is less expensive these days, it’s still a process fraught with opportunities for costly missteps.
Real estate transactions of every kind have far-reaching implications — especially if handled incorrectly. That’s why, however knowledgeable you may be, it’s smart to use a Realtor.
But remember, not all real estate agents are Realtors. The title Realtor is a professional designation — that’s why is why
Florida Homebuyer Orlando and some other publications now capitalize the word — denoting membership in an association, such as the Orlando Regional Realtor Association (ORRA).
“Clients are generally savvy people,” says Scott Hillman, now president of Fannie Hillman Realty, the venerable Winter Park agency that bears his mother’s name. “But part of being savvy is knowing when to call on professionals.”
Realtors are able to dispassionately evaluate a property’s value, and have the time and the tools to conduct the kind of extensive market research that the rest of us simply can’t. Plus, Realtors know what’s available — and what’s about to become available — that meets your needs.
Unless you’re a first-timer, buying a new home often involves selling your current home. And that’s far more complicated a process than it used to be, what with foreclosures and short-sales still skewing values and mortgages more difficult to secure.
Certainly there’s more to it than just putting a “for sale by owner” sign in your yard. The real estate industry has a language all its own: title insurance, surveys, inspections, earnest money, option fees, escrow, disclosures, required addenda for specific types of properties — the list goes on and on.
Orlando-area Realtors are already well versed in the intricacies of the transaction process. The time you’d need to educate yourself would clearly be better spent prepping your home to be sold.
There are also legal issues to consider. When you buy or sell a home, you will most likely enter into a legally binding contract with another party. Make a misstep somewhere along the way and you might jeopardize the transaction, lose money or find yourself a defendant in a lawsuit. Orlando-area Realtors have the education and experience needed to avoid these situations.
Selling a home requires more time than you may realize — especially now, when buyers have so many choices and competition for their attention is so fierce.
And the time required doesn’t just involve conducting personal guided tours. The first step in selling your home is determining an appropriate asking price, which requires a thorough analysis of current housing conditions in your market. And “market,” in this case, is defined as your specific neighborhood — street by street.
Perhaps the most common mistake owners make is setting a home’s price incorrectly. A price that’s too low may mean that a substantial amount of money gets left on the table. A price that’s too high may cause a home to linger on the market, giving the impression that something’s wrong. Consequently, when (and if) it finally sells, it may fetch less than it would have had it been priced properly in the first place.
Realtors have the data and the knowledge required to make certain your home is priced right and has a qualified buyer as quickly as possible.
And how about marketing? That’s a specialty in and of itself. In addition to showcasing your home via the Multiple Listing Service (MLS), a subscribers-only database of most homes for sale, good Realtors use every method imaginable to call attention to your home, from old-school flyers to colorful magazine ads; from direct mail to searchable websites.
If a marketing effort is successful, there’ll be plenty of people who want to have a look. Without a Realtor, you’d have to respond to emails and phone calls at all hours and keep a flexible enough schedule to accommodate showings.
Orlando-area Realtors show homes for a living and understand how to accommodate buyers’ and sellers’ schedules so both parties benefit. Plus, they can pre-qualify buyers to ensure that the people who are viewing your home also have the ability to buy it.
In addition, hiring one Realtor means you’ll have literally thousands of others interested in selling your home. More that 50 percent of real estate sales in the U.S. are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Realtors, then, are huge believers in the power of networking.
Of course, the biggest reason most people try to sell their own homes is to save the Realtor’s fee or commission. But even if you just want to sell to a friend or family member, it’s best to have an experienced professional handle the transaction. In almost any circumstance, particularly considering the time and hassle factor involved, you’ll come out ahead financially.
Most of the reasons you should use a Realtor for selling a home also apply to buying a home.
First, Realtors can make certain you’re paying a fair price. They can tell you what similar homes have sold for in your target area; how long those homes were on the market; and how those homes compare to the one you’re interested in.
Realtors are also pros at negotiation. They’ve been to the bargaining table many times on behalf of their clients, and bring an informed, dispassionate voice to a sometimes contentious process.
Negotiation and contracts go hand in hand — and Realtors have the training required to make certain the transaction actually takes place. From offer to closing, there are very few hurdles that an experienced Realtor hasn’t encountered and overcome.
There’s also the issue of finding the right home for you and your family. You may have a general idea of where you’d like to live, but Realtors know the region’s sub-markets better than anyone. They make it their business to know about neighborhood schools, churches and businesses in addition to home prices.
Realtors
deal with financing every day and are well-versed in all the options. Consequently, they’re indispensible in the pre-qualification and loan approval process. And, through their network of contacts, a good Realtor can even help you find the lender that can best meet your needs.
Realtors are also up to date on such subjects as real estate values, taxes, utility costs, municipal services and may be aware of local zoning changes that could affect your decision to buy.
Financing, of course, is the most vexing issue facing buyers in the fragile post-recession economy. The rules have changed and standards have become more stringent. Still, even people with less than perfect credit can take advantage of the tremendous housing bargains available.
Realtors deal with financing every day and are well-versed in all the options. Consequently, they’re indispensable in the pre-qualification and loan approval process. And, through their network of contacts, a good Realtor can even help you find the lender that can best meet your needs.
Realtors are also able to suggest other professionals you may need, such as real estate attorneys and home inspectors and appraisers.
Perhaps most important, whether you’re buying or selling, you can trust your Realtor to act in a professional manner. Realtors must follow a strict code of ethics, which means they owe their clients full fiduciary responsibility — including loyalty, confidentiality, accountability and full disclosure of all pertinent facts.
All Realtors are members of the National Association of Realtors (NAR) and their state and local Realtor associations. With some 9,000 members, ORRA, which encompasses Orange, Seminole, Osceola, Lake, Polk, Volusia and Hillsborough counties, is one the largest trade associations in the state and a terrific resource for buyers and sellers.
To find a Realtor, or for more information about Realtors and Orlando-area real estate, visit ORRA at orlrealtor.com.
HOW TO PICK A PRO
How do you pick the right person to represent you or your home? Here are a few do’s and don’ts you should consider when selecting an agent.
Naturally, check to make certain the agent’s license is current. Also, find out if the agent is, in fact, a Realtor. “The National Association of Realtors has a code of ethics that will knock your socks off, and they are very strict in dealing with people who don’t abide by them,” says Donald R. Brenner, professor emeritus at American University and a specialist in housing issues.
Also, only Realtors have access to Multiple Listing Services (MLS) through which members share listings and have access to many more properties than non-members. In addition, during your search you should:
• Ask around. Talk to people you trust for recommendations, particularly those who’ve had recent experience buying or selling a home.
• Look online. Some websites, such as Zillow, have agent reviews. Of course, anyone can post anything these days, so don’t rely strictly on online commentaries.
• Find a specialist. Look for someone with experience in your price range or your geographic area. Many pros advertise their areas of expertise.
• Conduct interviews. What is the agent’s specific marketing plan for your home? Is real estate the agent’s full-time profession? How many homes has the agent listed and sold this year?
• Check references. Get the names of the agent’s past clients and give them a call. Would they use the agent again?
• Avoid “dual agencies.” These are agencies that represent both the buyer and the seller. Your goal is to find someone who is in your corner exclusively.