Why People Use Realtors (Well, Some of the Reasons)
The contracts are created to protect you and to make sure that you can safely collapse the offer if some conditions are not met. For instance, if you want to buy a house and need to finance the purchase, the Realtor will ensure that there is a financing condition included in the offer, for your protection. Then should the bank decline your financing application, you can collapse the offer with no penalty and have the initial (good faith) deposit returned. Without this condition, you are purchasing this house. So if you don’t have the financing, you are in Breach of Contract and face the possibility of legal action. You would also forfeit the Initial Deposit. Realtors will guide you throughout the process. They know how to deal with different conditions and contracts. They know how to structure the contract for your protection.
If you want to purchase a house close to a business district and you want to build a flower shop in front of the house, you have to know if it will be allowed by the authorities. Often, realtors have enough knowledge about the local zoning bylaws to ensure that you buy the right house. Or, they will investigate to determine what is allowed and where. Likewise, if you want to add a bedroom, you have to make sure that the local authorities will allow it.
Moreover, there are some states / provinces that may have specific electrical requirements for different usages. A realtor will help ensure that you have knowledge about the requirement before making any transaction or by making this a condition of the purchase.
Realtors follow the code of ethics set by the National Association of Realtors. The code stipulates that realtors deal with all transactions honestly. They are obligated to put the interests of clients ahead of their own. They are required to disclose all the necessary information about a property. In other words, they are bound by the law. Penalties can include an expulsion, a suspension, or a possibly a fine.
More Convenience or Better Access
Acting as a liaison between sellers and buyers is a major job of realtors. This means that they will have access to all the properties that are listed by other realtors for comparisons. Both the seller’s and buyer’s realtors work full time and they exactly know what must be done to close a deal. For instance, if you are buying a house, your realtor will track down all the houses that meet your criteria. They will contact the seller’s agents and set appointments for the home viewing.
If you are purchasing without a Realtor, you will have to contact all the sellers and make appointments which can be difficult and a hassle. There are some cases, for personal reasons, in which the sellers do not want to advertise publicly. In these cases, only the realtors know which houses are for sale. They always know the latest listings. This can also work well for you in a hot market when listings are selling quickly. Your Realtor will advise you as soon as possible when a suitable listing appears.
Negotiating repairs is one of the toughest parts when purchasing real estate. Realtors will help you identify what needs to be repaired. They can recommend you to an experienced home inspector who can provide you detailed information on problems with the house. Some reports contain more than 10 pages. With this amount of information, buyers need to realize that some problems are important while others are not. For instance, if the house is in good condition, requesting repairs could break the deal. A realtor knows what is excessive to request and what is reasonable.
A few people do not like to purchase real estate through a realtor. They think that direct negotiation between sellers and buyers is more transparent and they may think that it allows them to better look after their interests. Perhaps, this is true if both the seller and buyer get along well. This is not very often the case unfortunately.
What happens if you do not like the kitchen design, shag carpet and the wood-paneled walls of the house? The homeowner may be offended when you tell them that their favorite carpet detracts from the value of their house. With the help of a realtor, you can express your concerns without insulting the house owner. Moreover, the Realtor may be able to negotiate a discount based on the work that needs to be done to bring the house to the buyer’s level of satisfaction.
You should remember that a seller can reject your offer for numerous reasons. During tough transactions, realtors can smooth things over to avoid any closing problems. This can prevent you from loosing a great deal.
Most experienced realtors can gauge the price of the home by looking at the house, inside and out. They can determine if the house is underpriced or overpriced by using comparable listings and comparable sales. Moreover, they know what houses to look for within your budget. Thus, you can save time and effort.
Thorough Record Keeping
Even though realtors are not lawyers, they can be good resources after a purchase is closed. Some authorities require realtors to keep all the transaction documents. While it is your responsibility to keep files yourself, realtors can help you in keeping your files accessable for the years to come. If you have any questions about the property in the future, you can contact your agent or brokerage.
Clearly, hiring a realtor has many advantages when purchasing a house. These advantages include zoning awareness, structuring contracts for your protection, ethical considerations, convenience, recordkeeping, unemotional and objective negotiation, and pricing expertise.
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