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.

1. Your REALTOR^® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR^® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

2. Your REALTOR^® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR^® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS^® have access to a variety of informational resources. REALTORS^® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR^® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR^® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR^® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR^®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR^® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR^® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your 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.

9. Your REALTOR^® markets your property to other real estate agents and the public. Often, your REALTOR^® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR^® markets 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 REALTOR^® 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.

10. Your REALTOR^® 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. When a property is marketed with the help of your REALTOR^®, you do not have to allow strangers into your home. Your REALTOR^® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR^® 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 REALTOR^® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR^® can help close the sale of your home. 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 REALTOR^® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement). Back to top

Choose a REALTOR^® to Sell Your Home

Once you've decide to sell your home, finding a REALTOR^® is the next step in the process. In making this important decision you should understand:

• Who is a REALTOR^®
• How to evaluate an agent
• What a REALTOR^® will do for you
• Selling on your own

If you’re not in a "must sell" situation (job transfer, career opportunity, family upheaval, financial hardship), but rather in an "elective" one, you may want to consider adding on to your current home (if you need more space) or refinancing to lower monthly mortgage costs (if finances are a concern).

Who is a REALTOR^® ?
The terms agent, broker and REALTOR^® are often used interchangeably, but have very different meanings. For example, not all agents (also called salespersons) or brokers are REALTORS^® .  Learn who is a REALTOR^® and the reasons why you should use one. As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met.

After receiving a real estate license, most agents go on to join their local board or association of REALTORS^® and the NATIONAL ASSOCIATION OF REALTORS^®, the world's largest professional trade association. They can then call themselves REALTORS^®. The term "REALTOR^®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS^® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR^® who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR^® who belongs to an MLS will give you access to the greatest number of homes.

How to evaluate an agent
Without any obligation, you can invite local REALTORS^® to visit your home and give you a "listing presentation" about why they're the best ones to market it for you. Two to three presentations will probably give you a good opportunity for choice. A listing presentation includes having the REALTOR^® review with you the reasons why you should list with that particular individual, and providing you with information that will assist you in making initial decisions about selling your home.

Recent laws in every state have defined the duties of someone specifically retained as a real estate agent. Most states require a real estate agent to explain his or her role at the outset of any conversation. A professional agent will promptly provide this such a disclosure. Look for an agent who:

• Is a member of the local board or association of REALTORS^®
• Explains and discloses agency relationships (the role of the agent, i.e., who they are representing--the buyer or the seller) early on in the process, at "serious first contact"
• Advises you on how to prepare your home for the market
• Shows some enthusiasm for your property, listens attentively, instills confidence, operates in a professional manner, and has a complementary personality style to yours
• Has already researched your property in the public records and the MLS
• Brings data on nearby homes that have sold (or failed to sell) recently

The following are important questions to ask a potential agent:

• Are you a REALTOR^® ?
• Do you have an active real estate license in good standing. To find this information, you can check with your state’s governing agency.
• Do you belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service? Multiple Listing Services are cooperative information networks of REALTORS^® that provide descriptions of most of the houses for sale in a particular region.
• If there's no nearby MLS, how often do you cooperate with other local brokers on a sale?
• What have you listed or sold in this neighborhood lately?
• Do you cooperate with buyers' brokers?
• What share of the commission will you offer a cooperating broker who finds the buyer?

And in addition to the criteria mentioned above, there are number of very important reasons you will typically prefer to work with a REALTOR^®. Among them are the fact that they adhere to the NAR’s highest standards of ethical conduct and professional training.

What a REALTOR^® will do for you
There are many important reasons to use a REALTOR^®. Some of the duties your REALTOR^® will perform for you include:

• Walking through the process of selling your home from beginning to end
• Providing comparable information about the prices for which other properties have sold and analyzing data for you to gain a true comparison
• Supplying information regarding local customs and regulations you may want to consider
• Sharing information about your home through the Multiple Listing Service and on the Internet
• Placing advertisements for your home
• Fielding phone calls
• "Qualifying" potential buyers to make sure they would be financially able to buy your property
• Negotiating the sales contract
• Alerting you to potential risks
• Complying with the disclosures required by law
• Providing you with an estimate of the closing costs you will incur
• Helping you prepare for a smooth closing of the transaction.

Selling on your own
"You can get rid of the broker, but you cannot get rid of the broker's work" is an old caution for those who intend to offer their homes "For Sale By Owner" (FSBO). Selling on your own is not an easy undertaking. It requires a significant amount of time to study the process, understand your obligations, and do some of the complicated work that a real estate agent does. In addition, selling on your own requires extra help from outside professionals, such as a REALTORS^®, accountants or attorneys for some of the jobs that require specific expertise.

The following are some major pitfalls to avoid:

• As a personal safety measure, only show your house to those individuals with whom you've made a prior appointment that's been confirmed by phone.
• Don't price the house so low that it sells too quickly - pay for a market value appraisal by an experienced appraiser.
• Hold out for a buyer with written pre-qualification from a lending institution.
• Find out your legal obligations.

If you require only limited services, some REALTORS^® will agree to help with the transaction for a predetermined fee. You can call real estate companies and ask for the managing broker and see if they're interested in furnishing "unbundled services." Back to top