The answers to the following questions are meant to be a guide and not complete in depth answers. If you would like to get the complete answers concerning the topics below try www.realtor.com and www.ired.com.
Will I save money selling on my own without using a REALTOR®?
It's possible and some are successful. Even if you decide to sell yourself it pays to have a relationship with a REALTOR®. Many will consult with you for no obligation in the hopes of being hired only if you decide to use a professional. REALTORS® will advise you on pricing, market conditions and such. There is no need to have an adversarial relationship.
Many times using a REALTOR® can actually make you more money as buyers working directly with owners also try to save money and it's difficult for both parties to do the same.
REALTORS® maintain relationships with buyers and are constantly advertising, creating a magnet for serious buyers leaving the bargain hunters for those selling on their own.
Why use a REALTOR®?
There is a difference between a real estate agent and a REALTOR®. 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.
When is the best time to call a REALTOR®?
Regardless of whether you decide to use a REALTOR®, it is best to call in the very beginning of the process to buy or sell a home. The information offered can be invaluable, especially for pricing and negotiating.
What is AGENCY and how does it affect me?
Agency has played a critical role in the process of buying and selling a home in recent years. Briefly, agency clarifies exactly who is representing only your best interest. In previous years it seemed that the party paying the commission was the only one entitled to representation. This is no longer the case. In most areas, especially when buying a home, the statute says that a discussion about agency is mandatory when beginning a relationship with a real estate agent.
What is dual agency?
Again, briefly, dual agency is when a real estate agent is representing the interests of both clients simultaneously. This is not as challenging as it may sound. The main criteria are that the agent cannot harm the negotiating position of either party.
When should I consult an attorney?
When working with a REALTOR® keep in mind that real estate agents are to adhere to the statute of the locality and many of the practices and forms utilized are actually created by attorneys. Therefore, your contact with an attorney would be most suited after contract when everyone is preparing to meet the terms of the contract actually agreed to in negotiation. It is also helpful to read contracts thoroughly before signing them, as most are clearly written. If you have concerns about the contract, asking a knowledgeable real estate attorney before signing is important.
How is the sales price of my home determined?
Buyers and sellers represent the market and actually determine sales prices. As a gauge, REALTORS® pay for access to data that would reflect recent home sales similar to the one you may be selling or buying. This gives a range of value the home may fall into. It is a similar process professional appraisers use but is not as thorough and generally there is no cost.
Do I need to sell my home before buying another one?
If you can afford to buy your next house without selling then no, however most consumers need to sell a home to realize their equity before buying their next home. If this is the case, you should absolutely get your home sold first!! A good REALTOR® can protect you in various ways. By selling your home first you are getting the most money for your home and strengthening your negotiating position when buying your next one.
When should I talk to a mortgage company?
Before you even begin looking at homes for sale!! In our computer age there are mistakes on credit reports and constantly fluctuating guidelines for lending not to mention numerous financing options. Once again this helps your negotiating position during the process!
What is title insurance and do I need it?
This protects the lender and you from possible defects of ownership. (i.e., someone's ex spouse claiming part ownership in the future or liens against the property not discovered by the settlement attorney). There are two types, one for the lender which is generally required by the lender as a condition of making the loan and one for the purchaser which is optional. It's a good idea to get owner's title insurance on older properties or when paying cash for a home and, actually, anytime you're buying a home.
Do I need a home inspection?
Absolutely!! It's also a good idea to get someone licensed and reputable. A good home inspector will spot virtually all the potential problems with a home and many times problems not realized by the seller.
Who handles the settlement when my home sells?
This is a choice for you. A title company can handle your settlement which involves meeting the terms of the contract and dispersing the funds. A title company can sometimes be cheaper than an attorney and just as effective. Or you can use an attorney which is a general practice for most consumers. It's a good idea to use an attorney familiar with real estate closings as the process is detailed with regulation that if not handled properly can cost you money!