by Blanche
Evans
The climate of the
real estate industry is changing. In the old days, less than 20 years
ago, all real estate agents worked for the seller, and even agents
working with the buyers did so in the seller's best interest. But
things have changed. New laws and regulations are in place so that
today, buyers can work with any Realtor of their choice and pay for
their own representative via the transaction proceeds. Yet, many fail
to take advantage of having their own representative help them through
the arduous home buying process.
According to the National Association of REALTORS (NAR,) four out of
five homes are sold through a real estate professional. But, says the
National Association of Exclusive Buyer Agents, less than fifty percent
of buyers go to the closing table represented. The National Association
of REALTORS® puts that same number even higher. According to
its most recent buyer/seller survey completed in 2000, 79 percent of
homebuyers purchased a home through an agent, but only 51 percent were
represented by an agent at closing.
Why would anyone undertake the most expensive transaction of their
lives without a representative to help them? Chalk it up to
old-fashioned buyer thinking. Some buyers don't know how treacherous
the negotiation and transfer of a home can be.
Many buyers, particularly while using the Internet, enjoy the relative
anonymity of shopping for homes alone. They like to find homes online
and then drive by the homes they find for an in-person peek. Some
buyers may believe that if they find the home they want online, that
they don't need a Realtor. Realtors are for finding homes, aren't they?
Not anymore. That's out-of-date thinking. It was the NAR, among other
early Internet pioneers, that pushed to put homes on the Internet in
the first place. Were they trying to put themselves out of work? No,
they were trying to automate the home search process because that is
the most time consuming for their clients as well as members. Even so,
not every home reaches the Internet. Some Realtor associations claim
that as many as 1/4 of listings are never posted on the Internet for a
variety of reasons, including reluctant sellers. Other homes sell so
quickly, the listing agent never bothers to post the home. How does
that work? Realtors network among themselves and "hear" about homes
from other agents. They let their buyers know which homes are coming on
the market, enabling them to make early offers before the home reaches
the multiple listing service where the homes are listed for all agents.
The fun only begins with the selection of a home. There are still weeks
and sometimes months of work left to do. First there is your offer to
manage. Sellers are adversaries, with opposite goals from you. They
want the most money and the best terms. You want to buy for the least
money and your idea of best terms. Realtors serve as intermediaries to
make sure your offer is presented without delay, rancor, or
misunderstandings. Then you have competition to worry about. In many
markets your offer won't be the only offer on a home. Your Realtor
knows what "it takes" to get the home you want.
Once your offer is accepted, your Realtor manages your transaction to
make sure that all the many players who have a piece to contribute from
lenders to appraisers, inspectors to closing agents, are all doing
their jobs and supplying their "piece" of the transaction at the
appropriate time and place.
The real estate transaction has become more complex, not less so. With
the aging of American homes, for example, the discoveries of health
hazards such as Radon, asbestos and lead in paint have created much
more liability for sellers and buyers. A Realtor can help buyers
navigate the maze of disclosures and inspections which assure the home
they are buying is safe.
Your Realtor sees to the details that you may not think about. S/he is
experienced at picking up the nuances of contract language. What if you
are relocating from another state? Customs differ. It may seem okay to
you to pay the seller's closing costs, but if that is not customary in
your new area, you may be over paying. A Realtor will step in and tell
you what goes on your side of the ledger and what is paid by the seller.
S/he will also keep her ear to the ground. Overhearing that the
neighbor installed a new fence after the seller purchased the home may
be a fact of only mild interest to you. "Good," you think. "At least I
won't have to repair a fence on that side yard for a long time." But to
a Realtor, that is a heads-up to get a survey performed pronto. What if
the fence "accidentally" encroaches a few feet into your yard? This
needs to be determined before closing or you could lose some valuable
real estate.
Buying a brand new home? The home should be under warranty, but having
a Realtor at the table will assure total accountability from the
builder. S/he will insist that you get a title search done even if the
property was a corn field before the development was bulldozed. S/he'll
insist on an independent inspection to make sure your home was built to
"code." Remember, without a Realtor by your side, the builder
represents his/her own interests, not yours.
Those are just a few of the jobs your Realtor will do for you as a
buyer's agent. Take advantage of having your own representative so that
you have the same advantages as the seller - equal representation,
under the law.