When you buy a home,
one of the most important decisions that you will make is whether to use the
services of a Realtor or to represent yourself. There are benefits to both when
it comes to negotiating the purchase price of your home. For example, using an
agent can help you secure financing for your home as well as ensure that your
interests are protected during the sale. You should familiarize yourself with
the process involved in using an agent and then decide which option works best
for you. Here are some tips to help you decide:
A quick search of your
local real estate brokerage database should yield results showing that brokers
from various states are licensed to sell or market in your area. The list of
brokerages typically holds the names of all the states in which a real estate
brokerage firm has branches. A typical agent will include a list of these
branches for you to choose from. A typical agreement would include the names of
the parties, the duration of the listing agreement, the cost and the beginning
and ending dates of the rental agreement; a detailed description of the
services to be offered by the broker, and possibly even an outline of the fees
that will be charged.
Each state requires
that real estate brokerage companies and agents register with them. The most
popular real estate brokerage companies must annually submit new agents to the
National Association of Realtors (NAR). In order to become registered, brokers
must meet a minimum requirement of having three years of experience within the
real estate industry and passing NAR examinations. Many states also require
agents to be insured against unforeseeable accidents or losses.
Some states limit the
number of percentage points that real estate agents may charge on buyers and/or
sellers. The fees charged are usually based on the value of the real property
being sold or the transaction expenses, such as recording fees, title insurance
premiums, legal fees, processing and appraisal costs. Some states also have
"holdback" agreements that require real estate agents to rebate a
portion of their commission if the transaction is unsuccessful. Holdbacks are
normally 10% of the outstanding balance on a real estate purchase. If the
purchase goes unsuccessful, holdbacks are refunded to the seller.
It's advisable for
potential buyers and/or sellers to consult with a brokerage before signing a
listing contract. A listing contract can be used as leverage in a negotiation
with a broker. The brokerage will have all of the information that a buyer
needs to make an informed decision about whether or not to sign a contract with
that brokerage. Buyers and/or sellers may also want to consider the advice of a
realtor who is more familiar with local real estate markets. These
professionals are usually very adept at finding and evaluating deals that go
through with brokers. They may be able to locate potential buyers and/or
sellers who are interested in the specific type of real estate being offered.
One way to find a real
estate brokerage that is right for you is to ask questions. Brokers work in an
extremely competitive market and one that is constantly changing. Because real
estate is a specialized field with legal documentation and market fluctuations,
different agencies will charge varying amounts for their services. By asking
specific questions before signing any listing contract, a buyer and/or seller
will be able to get the most favorable deal possible.
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