Why Use a REALTOR® When Selling
A real
estate agent can help you understand everything you need to know about the
selling process.
By
Ron Schmeadick
The selling process
generally begins with a determination of a reasonable asking price. Your real
estate agent or REALTOR® can give you up-to-date information on what is
happening in the marketplace and the price, financing, terms and condition of
competing properties. These are key factors in getting your property sold at
the best price, quickly and with minimum hassle.
Marketing
The next step is a
marketing plan. Often, your agent can recommend repairs or cosmetic work that
will significantly enhance the salability of the property. Marketing includes
the exposure of your property to other real estate agents and the public. In
many markets across the country, over 50% of real estate sales are cooperative
sales; that is, a real estate agent other than yours brings in the buyer. Your
agent acts as the marketing coordinator, disbursing information about your property
to other real estate agents through a Multiple Listing Service or other
cooperative marketing networks, open houses for agents, etc. The REALTOR® Code
of Ethics requires REALTORS® to utilize these cooperative relationships when
they benefit their clients.
Advertising is part of
marketing. The choice of media and frequency of advertising depends a lot on
the property and specific market. For example, in some areas, newspaper
advertising generates phone calls to the real estate office but statistically
has minimum effectiveness in selling a specific property. Overexposure of a
property in any media may give a buyer the impression the property is
distressed or the seller is desperate. Your real estate agent will know when,
where and how to advertise your property. There is a misconception that
advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies
show that 82% of real estate sales are the result of agent contacts through
previous clients, referrals, friends, family and personal contacts.
Security
When a property is
marketed with an agent's help, you do not have to allow strangers into your
home. Agents will generally pre-screen and accompany qualified prospects
through your property.
Negotiating
The negotiation
process deals with much the same issues for both buyers and sellers, as noted
above under the buying process. Your agent can help you objectively evaluate
every buyer's proposal without compromising your marketing position. This
initial agreement is only the beginning of a process of appraisals, inspections
and financing -- a lot of possible pitfalls. Your agent can help you write a
legally binding, win-win agreement that will be more likely to make it through
the process.
Monitoring,
renegotiating and closing
Between the initial
sales agreement and closing (or settlement), questions may arise. For example,
unexpected repairs are required to obtain financing or a cloud in the title is
discovered. The required paperwork alone is overwhelming for most sellers. Your
agent is the best person to objectively help you resolve these issues and move
the transaction to closing (or settlement).
Why use a REALTOR®?
All real estate
licensees are not the same. Only real estate licensees who are members of the
NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly
display the REALTOR "®" logo on the business card or other marketing
and sales literature. 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.
You be the judge
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®!
Ron Schmeadick, CRB,
is Co-Owner and Associate Broker at Realty Executives, Eugene, Oregon.