A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world's largest professional association. 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 abides by its strict Code of Ethics.
Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry.
Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice.
Working for America's property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members.
Check out the Public Awareness Campaign television and radio spots that encourage consumers to rely on the expertise and integrity of REALTORS®.
Now in its ninth year, the NAR advertising campaign runs February through November on network and cable television and network and satellite radio. This year's commercials help consumers understand the real value of working with REALTORS®. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS® are the experts of residential and commercial property transactions.
Friday, July 31, 2009
Tuesday, July 28, 2009
Hiring Buyer's Agents
Should Buyers Sign Exclusive Broker Agreements With a Buyer's Agent?
By Elizabeth Weintraub, About.com
Ask any buyer's agent who has been practicing real estate for a while, and you'll hear sad stories from those buying agents who wished they had signed a buyer to a buyer's broker agreement. In defense of buyers, however, it's rarely the buyer's fault. It's the agent's fault for not explaining how the business works.
What often happens is an agent will work with a buyer for a few weeks to several months or longer. This effort includes:
Introducing the buyer to lenders and obtaining loan preapproval letters
E-mailing listings that fit the buyer's requirements
Calling listing agents to determine availability
Making appointments with sellers before showing homes
Driving the buyer from one neighborhood to the next, sometimes touring up to 10 homes a day
Then one day the buyer calls, in breathless excitement, to announce that he and his wife had driven by a new subdivision, stopped to look at a model home and signed a contract to buy a new home from the builder. Sometimes they add, "Isn't that fabulous?" It's not fabulous from the agent's perspective.
Buyer's Agents Expect CompensationJust as listing agents sign formal listing agreements with sellers, buying agents expect formal agreements, too. Like listing agreements, buyer's broker agreements are typically bilateral, which spell out the rights and duties of both parties. Because bilateral contracts are essentially a promise for a promise, if the agent doesn't perform, you may have the right to fire the agent.
Finding a Buyer's Agent
Many buyers are referred by family, friends or co-workers to a buyer's agent. A referral is the best way to find an agent. However, buyers who are relocating to a new area rarely have the luxury of building contacts quickly enough to trust a referral source. Alternatives buyers can use to find an agent are:
Internet Searches
By finding online listings of homes for sale, a buyer can quickly figure out which agents in certain neighborhoods list most of the homes. But that would mean those agents are likely to specialize in seller representation and not buyer representation. Instead, run keyword searches such as "downtown denver buyer's agent" from a search engine. You can also search Web sites where agents maintain national profiles such as activerain.com or realtor.com, in addition to finding exclusive buyer brokerages that specialize solely in buyer representation and do not take listings at all.
Open Houses
An agent hosting an open house may or may not be the listing agent. You should ask. Open houses provide an excellent opportunity to interact with the agent and find out more about the agent. If a certain agent appears knowledgeable and your personalities mesh, ask for a business card. Then later, look up the agent's Web site for more information.
Should You Sign an Exclusive Agreement?
Little turns off buyers faster than an agent from the Internet who e-mails a buyer's broker agreement before meeting in person. It's common for agents to expect a buyer to sign a buyer's broker, but most buyers need to feel comfortable with an agent before signing.
Interviewing a real estate agent can help to ease a buyer's uncertainty. But many buyers are leery of signing agreements because they are concerned that the relationship might not work out. They don't want to be stuck with a crummy agent, and that's understandable. Here are a few precautions you can take to relieve that anxiety:
Ask For Short-Term
The term of a buyer's broker agreement is negotiable. Although many agents might request a 90-day commitment at minimum, you are free to ask for a 24-hour, seven-day or 30-day term; it's whatever you can negotiate.
Request a Non-Exclusive Agreement
These agreements provide compensation to the agent if you decide to switch agents midstream and buy a home introduced to you by the first agent. It protects the agent by establishing procuring cause. But you are free to pursue any other homes with another agent.
CompromiseYou can tell the agent that you prefer to spend a little time getting to know the agent before signing an exclusive buyer's broker agreement. It's reasonable to say, "Let's spend an afternoon looking at homes, and if I think we can work together, I will sign an agreement with you before we go out again." I would caution against working with an agent who is too eager to work with you before she has interviewed you, as well.
Specify Areas and Terms
Most contracts contain a description of the property. If you are undecided about areas, you might want to specify the terms and area in the contract, which will allow you to work with other agents in other areas or at different terms. For example, you might specify a price range or a neighborhood. If you later decide you do not want to buy a home in that price range or in that neighborhood, you can choose a different agent to show you homes in another price range or new area.
Ask For a Guarantee
I give my clients a guarantee. Many agents will accommodate that request if you ask. That means it's a two-way street. I guarantee buyers that if either of us decide that the relationship is not working out or our personalities clash, I will release them from the agreement, and they can do likewise. That way you're not cemented to a business arrangement if the agent is too pushy, argumentative or stubborn, and I'm not just talking about myself.
By Elizabeth Weintraub, About.com
Ask any buyer's agent who has been practicing real estate for a while, and you'll hear sad stories from those buying agents who wished they had signed a buyer to a buyer's broker agreement. In defense of buyers, however, it's rarely the buyer's fault. It's the agent's fault for not explaining how the business works.
What often happens is an agent will work with a buyer for a few weeks to several months or longer. This effort includes:
Introducing the buyer to lenders and obtaining loan preapproval letters
E-mailing listings that fit the buyer's requirements
Calling listing agents to determine availability
Making appointments with sellers before showing homes
Driving the buyer from one neighborhood to the next, sometimes touring up to 10 homes a day
Then one day the buyer calls, in breathless excitement, to announce that he and his wife had driven by a new subdivision, stopped to look at a model home and signed a contract to buy a new home from the builder. Sometimes they add, "Isn't that fabulous?" It's not fabulous from the agent's perspective.
Buyer's Agents Expect CompensationJust as listing agents sign formal listing agreements with sellers, buying agents expect formal agreements, too. Like listing agreements, buyer's broker agreements are typically bilateral, which spell out the rights and duties of both parties. Because bilateral contracts are essentially a promise for a promise, if the agent doesn't perform, you may have the right to fire the agent.
Finding a Buyer's Agent
Many buyers are referred by family, friends or co-workers to a buyer's agent. A referral is the best way to find an agent. However, buyers who are relocating to a new area rarely have the luxury of building contacts quickly enough to trust a referral source. Alternatives buyers can use to find an agent are:
Internet Searches
By finding online listings of homes for sale, a buyer can quickly figure out which agents in certain neighborhoods list most of the homes. But that would mean those agents are likely to specialize in seller representation and not buyer representation. Instead, run keyword searches such as "downtown denver buyer's agent" from a search engine. You can also search Web sites where agents maintain national profiles such as activerain.com or realtor.com, in addition to finding exclusive buyer brokerages that specialize solely in buyer representation and do not take listings at all.
Open Houses
An agent hosting an open house may or may not be the listing agent. You should ask. Open houses provide an excellent opportunity to interact with the agent and find out more about the agent. If a certain agent appears knowledgeable and your personalities mesh, ask for a business card. Then later, look up the agent's Web site for more information.
Should You Sign an Exclusive Agreement?
Little turns off buyers faster than an agent from the Internet who e-mails a buyer's broker agreement before meeting in person. It's common for agents to expect a buyer to sign a buyer's broker, but most buyers need to feel comfortable with an agent before signing.
Interviewing a real estate agent can help to ease a buyer's uncertainty. But many buyers are leery of signing agreements because they are concerned that the relationship might not work out. They don't want to be stuck with a crummy agent, and that's understandable. Here are a few precautions you can take to relieve that anxiety:
Ask For Short-Term
The term of a buyer's broker agreement is negotiable. Although many agents might request a 90-day commitment at minimum, you are free to ask for a 24-hour, seven-day or 30-day term; it's whatever you can negotiate.
Request a Non-Exclusive Agreement
These agreements provide compensation to the agent if you decide to switch agents midstream and buy a home introduced to you by the first agent. It protects the agent by establishing procuring cause. But you are free to pursue any other homes with another agent.
CompromiseYou can tell the agent that you prefer to spend a little time getting to know the agent before signing an exclusive buyer's broker agreement. It's reasonable to say, "Let's spend an afternoon looking at homes, and if I think we can work together, I will sign an agreement with you before we go out again." I would caution against working with an agent who is too eager to work with you before she has interviewed you, as well.
Specify Areas and Terms
Most contracts contain a description of the property. If you are undecided about areas, you might want to specify the terms and area in the contract, which will allow you to work with other agents in other areas or at different terms. For example, you might specify a price range or a neighborhood. If you later decide you do not want to buy a home in that price range or in that neighborhood, you can choose a different agent to show you homes in another price range or new area.
Ask For a Guarantee
I give my clients a guarantee. Many agents will accommodate that request if you ask. That means it's a two-way street. I guarantee buyers that if either of us decide that the relationship is not working out or our personalities clash, I will release them from the agreement, and they can do likewise. That way you're not cemented to a business arrangement if the agent is too pushy, argumentative or stubborn, and I'm not just talking about myself.
Monday, July 27, 2009
Love at First Site? : Get the lowdown to get a prince of a residence
Houses are like spouses --- some grow on you over time, some strike your heart like a thunderbolt. But true love is true love, so don't worry about how it happens. Look at available homes with open eyes and an open mind, and evaluate each one as thoroughly as possible.
1) Location, location, location.
a. What's your job commute going to be like? Is the traffic heavy or light at the times of day you'll be on the road?
b. How's the school district? Even if you don't have kids, the quality of the school district affects your home's value, so it pays to find out.
c. Is there much crime?
d. How convenient are shopping centers, libraries, churches and so on?
2) Decide which home features are most important to you.
a. Do you have pets? You may want to narrow the field to homes with substantial backyards.
b. Is your family growing? Make sure there are enough bedrooms for your family today and five years from now.
c. Be shrewd about storage space. Houses with cavernous rooms may be impressive to look at, but they sometimes compromise storage space to achieve that effect. Would you rather have a place to hang your crystal chandelier or a place to hang your coats?
d. Will any remodeling be required to make the home move-in ready for you? If so, are you handy with a hammer or would you prefer to find a home that needs little work?
3) Ask questions.
Resist the temptation to traipse starry-eyed through each home you tour. Look at any pros and cons as honestly as possible, and ask questions. Some good questions to ask your agent or the seller:
a. What service providers (cable, Internet, telephone) are available in the area, and is the house completely wired for each?
b. How much do you pay yearly in city and/or county property taxes?
c. How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
d. How old are the major appliances, and which are included with the house?
e. Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
f. Ever had problems with insects, spiders or rodents?
4) Scrutinize.
Look inside cabinets, inside closets, at baseboards, at window casings, at door frames, where walls meet floors and ceilings. Look for any signs of damage, wear or poor construction.
(from Frontdoor.com)
1) Location, location, location.
a. What's your job commute going to be like? Is the traffic heavy or light at the times of day you'll be on the road?
b. How's the school district? Even if you don't have kids, the quality of the school district affects your home's value, so it pays to find out.
c. Is there much crime?
d. How convenient are shopping centers, libraries, churches and so on?
2) Decide which home features are most important to you.
a. Do you have pets? You may want to narrow the field to homes with substantial backyards.
b. Is your family growing? Make sure there are enough bedrooms for your family today and five years from now.
c. Be shrewd about storage space. Houses with cavernous rooms may be impressive to look at, but they sometimes compromise storage space to achieve that effect. Would you rather have a place to hang your crystal chandelier or a place to hang your coats?
d. Will any remodeling be required to make the home move-in ready for you? If so, are you handy with a hammer or would you prefer to find a home that needs little work?
3) Ask questions.
Resist the temptation to traipse starry-eyed through each home you tour. Look at any pros and cons as honestly as possible, and ask questions. Some good questions to ask your agent or the seller:
a. What service providers (cable, Internet, telephone) are available in the area, and is the house completely wired for each?
b. How much do you pay yearly in city and/or county property taxes?
c. How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
d. How old are the major appliances, and which are included with the house?
e. Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
f. Ever had problems with insects, spiders or rodents?
4) Scrutinize.
Look inside cabinets, inside closets, at baseboards, at window casings, at door frames, where walls meet floors and ceilings. Look for any signs of damage, wear or poor construction.
(from Frontdoor.com)
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