Why Hire a Realtor

Why hire a realtor:

Let’s face it, searching for a home seems easy enough.  After all, 80% of buyers survey that the internet was their greatest source for home searches.  So why then should a buyer hire a Realtor?  The same 80% that used the internet also source using a realtor to help with the process beyond the search.  Also, in today’s competitive market, wouldn’t it be nice to hire a realtor for FREE and have all these benefits:


1. Protection

A Realtor owes their client fiduciary duties.  In MN this means that a Realtor is required by the code of ethics to work in their clients best interests. Realtors hold a license and are insured as well; so if something goes wrong with a transaction and the buyer becomes liable; so does their Realtor. This may help the buyer be protected under law. One wouldn’t sue another individual without an attorney.  One shouldn’t buy a home without a Realtor; and that’s a good reason for: why hire a realtor?


2. It’s FREE

It’s hard to believe that it’s FREE for a buyer to hire a Realtor, but it is absolutely true.  In Minnesota, Realtors are paid by the Listing Company.  This means that the buyer doesn’t have a Realtor Commission.  So the question here isn’t why hire a realtor, the question here becomes, why not hire a realtor?


3. Knowledge & Negotiation

Purchasing a home is one of the most stressful times a person can go through in their lives.  A Realtor will use their knowledge of Foreclosures, Short Sales, and Traditional sales to help you get the best possible price of a home.

By the way, not every home that is listed for sale is available for sale.  In fact, only Realtors have access to some of this information.  When we talk about Negotiating a purchase agreement we are talking about numbers that most people deal with a couple times in their lifetime.  Realtors deal with these numbers every single day.  Realtors take the emotional attachment away from the negotiation and have the knowledge to handle the daunting paperwork.


4. Facilitate the Closing

Again, most people buy and sell real estate a few times in their lifetime.  Realtors deal with the pending and closing process every day.  Realtors are better prepared to facilitate the transaction to a close than is a consumer.

Below you will find Three Articles from the National Association of Realtors (NAR) regarding hiring a Realtor:


Why Hire a Realtor NAR


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


How a Realtor Can Help NAR


A real estate agent can help you understand everything you need to know about the buying process. The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves plus your borrowing capacity. If you give a real estate agent 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.

Looking  Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your needs. This is the time to choose a real estate licensee. When picking a real estate agent look for one who is also a REALTOR®.

A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS®, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics. A REALTOR® has many resources to assist you in your search. Sometimes the property you are seeking is available but not actively advertised in the market. It will take some investigation by your agent to find all available properties.

Choosing a property Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent 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?

Negotiating 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.

Due diligence With a negotiated agreement in hand, it is time to complete 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 agent 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. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.

Financing As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualified lenders. Closing or settlement

Facilitate Finally, there is the closing, or settlement, as it is known in different parts of the country. Every area has its own unique customs. In some areas, the title or escrow company will handle this process. In other parts of the country, an attorney does it all. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly. Why use a REALTOR®?

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 their business cards or other marketing and sales literature. REALTORS® are committed to treat all parties in a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a high 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.

You be the judge Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®!


What a Realtor Can Do NAR


The REALTOR® you work with could be one of your most valuable resources. Unlike many real estate agents who are simply licensed by their state to do business, REALTORS® have taken additional steps to become members of the local board of REALTORS® and have agreed to act under and adhere to a strict Code of Ethics. Plus…

1. A REALTOR® can help you determine how much home you can afford. Often a REALTOR® can suggest ways to accrue the down payment and explain alternative financing methods.

2. A REALTOR®, in addition to knowing the local money market, also can tell you what personal and financial data to bring with you when you apply for a loan.

3. A REALTOR® is already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.

4. A REALTOR® can usually research your housing needs in advance through a Multiple Listing Service–even if you are relocating from another city.

5. A REALTOR® can show you only those homes best suited to your needs–size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences.

6. A REALTOR® often can suggest simple, imaginative changes that make a home more suitable for you and improve its utility and value.

7. A REALTOR® is sensitive to the importance you place on this major commitment you are about to make. Look for a real estate professional to facilitate negotiation of a win-win agreement that will satisfy both you and the seller.


This page was created for prospective homeowners to not only search for homes, but to become an educated home buyer, to research information that is pertinent and relevant to buying in Minnesota.  For more information regarding buying a home, call Travis Anderson at 651-485-6383