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  1. What does a Realtor® do for their money?

    Jul07

    Comments (452) July 07, 2009 | posted by: CWPStaff
    Some people may ask; “Why do I need a realtor®?  All you guys do is fill out the paper work and collect a big fee for doing practically nothing.”  Does the realtor really earn their money?  What services do they provide?  Let’s take a look at what the realtor can do for you. To begin with he or she has access to all the homes that are listed with all the agents in the area.  That is the purpose of the Multiple Listing Service (MLS) which is owned and operated by the realtors® in our area.  Homes that are listed on the MLS can be shown and sold by any licensed realtor® from any office.  That is a great plus for you the buyer.  Instead of having to call multiple agents to get information you can find the agent you are most comfortable working with and they will do the research for you using your search criteria.  That alone is a great time saver.  Perhaps you enjoy browsing the internet and looking at different homes on line yourself.  That’s great!  You should do that and then let an agent take you to see your chosen properties in person.  He/she can be your unbiased second opinion as you view the properties.  The owner or listing agent is going to put the home in its best light and not mention any negative aspects of the home.  Remember your agent is a professional and has experience with many homes and communities and can be your best advisor. Even after the agent has taken you to multiple homes and spent hours of time with you looking at homes and helping you find a lender to work with,  the work has just begun for them.  Let’s assume for a moment that you have found a home that you want and your agent has written and offer for you; what then?  Here is a partial list of what the realtor® will do for you next:
    • write the offer and get required signatures, preapproval letter, initial deposit check
    • submit offer to the listing agency
    • if offer is countered, prepare response and counter offer
    • if accepted, get all the necessary disclosures and  documents signed by both parties
    • open escrow with the title company that will be handling the closing by giving copy of the agreement, names/numbers/emails of all parties involved in the transaction
    • get preliminary title report on the property and review with buyer
    • connect with the lender by giving copy of executed agreement
    • coordinate bank appraisal
    • follow up with loan underwriter after appraisal to find out if property appraises for the amount of the loan
    • schedule inspections if necessary
    • if not an REO (bank-owned) prepare request for repairs as needed following inspections
    • negotiate request for repairs and/or credits
    • outline and monitor timelines for contingency release for loan appraisal/approval and buyer investigation periods
    • get buyer to release contingencies at the appropriate times or request extension
    • give closing terms to escrow officer
    • verify closing statements
    • phone calls to listing agent and buyer throughout the process
    • help you avoid any legal problems
    • be there with you through out the entire closing process to look out for your best interest
    Again, this is only a partial list. In reality there is a lot that the agent does for you to earn their commission.  In many instances if you were to figure their salary on an hourly basis less their expenses few people would be willing to work for that fee.  Yes it is true that once in a while a realtor® will receive a good commission on a lager piece of property but that is the exception and not the rule.  Most deals are modest pieces of property with a modest commission.  Remember also that the commission on the sale does not all go to the agent.  Typically a property may have a 6% sales commission on the selling price of the property.  The commission is then split up among four different people; a listing broker, a listing agent, a selling broker, and a selling agent.  And that is all before they share a big slice with the government for taxes.

    As you can see using a agent to help you buy or sell a piece of property is well worth any commission that is paid for their services.  They are professionals that will save you time and money and help you avoid costly mistakes with you real estate transaction.  Call a realtor® today.  They will be there for you all the way.

    Paul BowenPresident of Upper Valley Realtors Association 
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