Working with a Realtor^®

Why should I work with a REALTOR^®?

A REALTOR^® is both licensed by the state AND a member of the National Association of REALTORS^® (NAR). All NAR members subscribe to a strict Code of Ethics in addition to state law. Real Estate Agents, on the other hand, although also licensed by the state, are not bound by the NAR Code of Ethics.

• In practice, a REALTOR^® makes your life easier by - helping you analyze your financial situation - what you can afford; how to preview and repair credit; presenting your case to a Lender; etc.
• A REALTOR^® explains the PROCESS to you. Buying your dream home involves lots of details - REALTORS^® have been there and can prepare you for it.
• A REALTOR^® accesses info on listings fitting your needs - many you may not be aware of.
• A REALTOR^® previews lots of listings, eliminating the losers, and connecting you to the cream of the crop. What would take months on your own is done for you in a timely and cost-effective manner (usually NO cost to you). Result - you get to your new home before it's SOLD.
• A REALTOR^® sets up appointments for you handling all the paperwork when you find a home you want to buy and take off the market (Agreements of Sale, Addendums, Disclosures, Inspection forms, Cost sheets, Title insurance, Hazard insurance, and MUCH MORE)
• A REALTOR^® oversees the mortgage process for you - troubleshoot and problem-solve until it's approved.
• A REALTOR^® processes the transaction to Settlement (inspections; repairs; appraisals; hazard insurance; Title Insurance; certifications; coordinating schedules, utility connections; pre-settlement inspections; and MORE)
• A REALTOR^® attends Settlement to answer questions and make sure all is well.

How do I go about choosing a REALTOR^®?

You'll likely spend a fair amount of time with this person so it's important that you're comfortable. You may want to consider the following -

• Are they responsive (returns phone calls; emails; etc)?
• Do they show an interest in your needs (ask questions; note your reactions)?
• Have they helped you analyze what you can afford before you waste time outside your budget?
• Are they preparing you in advance for how the process works?
• Do they offer you options instead of "my way or my way"?
• Are they suggesting listings to you rather than the reverse?
• Do they disclose material facts to you?
• Are you COMFORTABLE with them?

If most of your answers are YES, you have a winner - be loyal to them (remember, they only get paid if you buy through them!). Loyalty breeds better service - so you'll probably see more homes and have a smoother road to settlement!

For help in selecting the right REALTOR^® for you, click here.

Is it smart to sign a Buyer Agency Agreement?

For years, most REALTORS^® formed legal relationships with Sellers and represented the Seller's interests (while honoring an ethical duty of fairness and disclosure to all). Today, if a buyer wants an agent to represent them and advocate on their behalf, Buyers can form legal relationships with REALTORS^® (via the Buyer Agency Agreement). Buyer Agents can be paid by anyone (Buyer, 3rd party, Seller). In the vast majority of cases, the Buyer Agent is paid from the commission offered via the MLS by the Listing Broker (ie-NO out of pocket cost to the Buyer). According to a recent independent survey for the National Association of REALTORS^®, an astounding 84% of today's buyers want to be represented. And represented buyers are satisfied and comfortable 92% of the time vs. 44% of the time for unrepresented buyers.

To learn more about how Buyer Representation can help you, click here.

How do I search for Homes?

Resist the temptation to "see everything" - this could take months and your time is valuable. Worse, your dream home could have sold yesterday to someone else because you "didn't get to it yet". Use a professional REALTOR^®. Let them screen out poor choices so you see the cream of the crop. Quickly. Conveniently.

You can help - use data tools like this website; a firm's total inventory magazine (TIM); a firm's total inventory Hotline to quickly and thoroughly review listings in your location and price range of choice. Listings can be missed (we're human too).

To go to the Property Search feature of our Website, please click here.

What are the keys to successful negotiating?

• Understand the other party's needs - whether it's a quick settlement; a "clean" sale (few "subject to's "); or top dollar - it pays to know.
• Don't insult the Seller - Seller's are human and have active emotions. If you make a lowball offer and justify it by criticizing their home, most Sellers will shut you out - even if you come back later with a reasonable proposal.
• Have an advocate represent you - avoid the emotions of negotiations. A Seller can vent emotions with a REALTOR^® without "drawing battle lines" with you.

In addition, a REALTOR^® can package and present ("sell") your offer in ways your modesty or inexperience may overlook. To learn more about how Buyer Representation can help you, click here.

How Much Deposit is needed to "hold" a home until settlement?

This amount is established by negotiation between the Buyer and Seller. Typical amounts range between 5 and 10% of the Purchase Price. Be aware that - a significant deposit can make you a stronger buyer without cost if you're competing with other buyers. By law, REALTORS holding deposits cannot release deposits in dispute. If the parties can't agree, the deposit is paid into court (a process which, by its self, can eat up some deposits).

Can I protect against buying a house of horrors?

Fortunately, YES! Consider the following options -

• Seller Disclosure Statement - completion of this form by the Seller has been in practice for several years and is now required by law in Pennsylvania. This form contains certifications from the Seller as to the condition of the operating systems of the property and a disclosure of any known, material defects.
• SEE THIS FORM BEFORE YOU SUBMIT AN OFFER - or, make your offer subject to receiving and approving the form in a reasonable time.
• Inspections - will help you become aware of conditions that are unknown to the Seller. They're a good idea if you're unsure about any operating system of the property. Try to select an inspector who is a clear expert on the subject operating system (vs. someone who knows "a little about everything")
• Home Warranties - these can provide an extra layer of protection. Life involves problems and homes are not exempt!

How can I tell what a home is worth?

A home is worth what a buyer is willing to pay for it (sounds obvious doesn't it?). That price can be below; at; or above the listed price depending upon comparable sales and market conditions.

A fairly priced property will be listed at what buyers are paying for similar homes recently sold (recent = no more than 6 months ago preferably less). If no buyers are responding, the price can decline - if Buyers are competing (multiple showings or offers), the price can rise.

To get a thorough and professional Comparative Market Analysis (CMA) of a property you are serious about, click here.

It's both cost and obligation free. This analysis compares the property to recent sales; properties available NOW; and similar properties that failed to sell. Only real estate professionals have the experience, local knowledge, and proper information to accurately pinpoint prices.

How do I purchase Home 2 if I have to sell Home 1 first?

Carefully! You don't want to get stuck owning 2 homes at the same time and having 2 mortgage payments (plus a short term loan for your down payment and closing costs). Ugh! Consider these options -

• Homesale Contingency - make your Agreement to buy Home 2 subject to your ability to sell Home 1 (within 30 to 90 days). Many Sellers are reluctant to lose market time, though, and will insist on being able to keep talking to other Buyers (giving you 72 hours if Buyer 2 submits an offer). As you can imagine, this can lead to the heartache of losing your dream home.
• Sell Home 1; then start looking - no heartache here, BUT you will feel pressure to find Home 2 (normally, your Home 1 Buyer will only agree to wait 15 to 30 days)

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To find out more about our services for home buyers and sellers, please call us at 800.383.3535 or click here to contact us!