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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:
1. 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.
2. 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.
3. 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?
4. 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.
5. 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.
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.
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