Realtors spearhead the home-buying process on behalf of their clients. They are professionals that are obligated to abide by the National Association of Realtors’ Code of Ethics and Professional Standards.
They know the local money market and financing options, as well as home values. They also have superior negotiation skills.
They Have Your Best Interest at Heart
While it may be easy to assume that your real estate agent has your best interest at heart, many agents fail to do so. A survey conducted by the Consumer Federation of America found that only half of adults believe that their real estate agents have their best interests at heart.
Realtors are bound by a fiduciary duty to protect their clients and keep them informed throughout the home buying or selling process. If you think that your agent hasn’t been doing so, it’s worth considering switching brokers or going with someone who is more experienced.
When it comes to finding a new realtor, ask for referrals from friends, family members and colleagues. Interview candidates to get a feel for their work ethic and how they would handle your specific home buying or selling needs. Find out how much experience they have and what their average list price to sales price ratio is.
Remember, not all real estate professionals are Realtors(r). The term Realtor is trademarked by the National Association of Realtors(r) and can only be used by real estate professionals who are members and adhere to the association’s code of ethics. Real estate agents, on the other hand, can be licensed to sell any type of property. The difference between the two terms is significant and could mean a lot to your home buying or selling experience.
They Are Knowledgeable of the Home Buying Process
Real estate agents are a wealth of knowledge when it comes to the home buying process. They can guide you through every step of the journey, from exploring neighborhoods to find homes that meet your criteria to setting up appointments to view properties to making an offer on a home to finalizing your purchase and settlement terms.
In addition, a realtor can help you with the financial aspect of purchasing a home by recommending mortgage lenders to interview and guiding you through the loan approval process. They can also suggest a professional home inspector to inspect the property and point out any issues the seller may need to address before closing. And they can advise you on how to best negotiate an offer with the seller and other parties involved in the transaction.
While finding a real estate agent isn’t hard — you see their names on billboards and for-sale signs all over town — hiring the right one to help you navigate one of the largest financial decisions of your life is crucial. Look for a realtor who is a member of the National Association of Realtors and abides by its Code of Ethics, which includes ensuring all transactions are handled fairly and honestly.
Only real estate professionals who are members of the NAR can legally use the term “realtor” on their business cards and marketing materials.
They Have Superior Negotiation Skills
Real estate agents negotiate on behalf of their clients in a variety of situations. They help buyers secure mortgage pre-approval, advise on home financing options and lender requirements, assist with negotiating the best price for a property, oversee and recommend professional home inspections, negotiate repair requests from seller after an inspection, and assist in closing the sale.
Effective negotiation skills are essential for securing favorable prices and terms when purchasing properties in the real estate market. They include strategies such as active listening, asking relevant questions, and articulating their clients’ expectations clearly.
In addition, a strong negotiator can understand and leverage the psychology of their client’s behavior to create win-win scenarios. They are also able to anticipate objections and propose solutions before they become sticking points during negotiations. Other negotiating tactics include utilizing silence as a powerful tool, bundling requests for streamlined negotiations, and understanding their clients’ BATNAs to facilitate advantageous outcomes.
A real estate agent is able to communicate effectively with all parties involved in the real estate transaction, including sellers, buyers, and other real estate agents, brokers, lenders, and contractors. They also maintain a professional demeanor while being personable, which helps build trust and foster positive client relationships that can lead to repeat business and referrals. They can address concerns while remaining calm and reassuring, alleviating clients’ anxiety during stressful transactions.
They Save You Time and Energy
If you are looking to buy or sell a home, then the best option is to hire a Realtor. Realtors are experienced professionals who have been through countless transactions and know the process inside and out. They can save you time, energy and money by handling the negotiating process on your behalf.
Realtors have access to the Multiple Listing Service (MLS), which can quickly get your property in front of many eyes, potentially increasing your chances of a sale. They also have the ability to track down properties that are not publicly listed, saving you a lot of time scouring websites or driving around for hours at a time without finding anything.
For sellers, they can help you set a fair market price for your home, recommend any improvements that will increase your sales potential, host open houses and promote your property online. They can also find you a qualified responsible professional to perform any required investigations on the property, such as inspections for termites, asbestos, water damage and septic tank and well tests.
If you are considering hiring a real estate agent, be sure to look for the NAR (National Association of Realtors) logo. This indicates that they are a member of NAR and must adhere to their Code of Ethics. The code contains 17 articles that cover a range of ethical responsibilities for Realtors, including duties to clients and customers, the public, and other Realtors.
