A real estate transaction (buying or selling a home) is a very technical and sophisticated process. It is for most people the largest single financial transaction of a lifetime. When all goes to plan the process usually goes smoothly. However, there are multiple parties, steps, and variables in real estate transactions. Understanding the process, the market, the parties, and the potential obstacles, along with proactive due diligence before, during, and after the transaction, is necessary to enable clients to maximize their return-on-investment while minimizing surprises and associated stress.
Sounds simple, doesn't it? However, most homeowners and prospective homebuyers are not aware of, nor prepared for, the time commitment and effort required to go it alone. Most people who are looking to buy or sell a home, have probably heard that they should work with a real estate agent. That is because a real estate agent acts as an intermediary between buyers and sellers and works on behalf of buyers and sellers with all of the other parties involved in real estate transactions.
According to the National Association of Realtors® (NAR), 89% of buyers purchase their homes through real estate agents or brokers, and 89% of sellers were assisted by a real estate agent when selling their home.
Representation
So, what does a real estate professional do when representing a buyer or seller, and how can working with one benefit you?
A real estate agent is a licensed professional who assists buyers and sellers in real estate transactions. If you are buying a home or selling a home, the real estate professional representing you will act on your behalf before, during, and after the buying and/or selling process.
Why is working with a real estate professional the key to your success in the real estate market? What exactly is the value of real estate professional in a real estate transaction?
179 Things a REALTOR® May Do To Help Clients
Here is a look at 179 things, big and small, that a real estate professional who is a REALTOR® may do to help clients when buying or selling a home.
A real estate agent license is the state-issued license that allows the license holder to legally assist the general public in buying and selling real estate. You can’t call yourself a real estate agent without having an active state-issued license.
Beyond the license itself, there is a notable difference between being a licensed real estate agent and being a REALTOR®. You might be wondering why a National Association of Realtors®, NAR, membership and being titled as a REALTOR®, makes enough of a difference to affect an agent’s work title. The biggest reason is the NAR Code of Ethics that was adopted way back in 1913. The Code includes 17 ethics points and 71 supporting Standards of Practice.
Every year the NAR Code of Ethics is updated, although it primarily remains the same. The Code ensures that consumers are served by requiring REALTORS® to fulfill their fiduciary duty while cooperating with each other in furthering clients' best interests.
Real Estate Commissions - Who Pays?
With all the discussion around real estate commissions and real estate commission related lawsuits it is especially important for you as a buyer or seller to understand exactly what value you are receiving today when being represented by a real estate professional on the sale or purchase of your home and who pays what for those services.
Towards that end, check out our blog post entitled Beyond the Headlines: Understanding How Proposed Changes in Real Estate Commissions Will Actually Impact You as a Buyer or Seller! In it we discuss the topic in detail, including what you want to know, what you can expect when being represented by a real estate professional, and who pays what fees for those services.
Bottom Line
A real estate professional is a problem solver and real estate transaction logistics coordinator. The real estate professional provides emotional support and ensures that the buying and/or selling process runs smoothly. The real estate professional has fiduciary responsibility which means they must act in the best interests of their clients and not their own interests, working closely with all the parties throughout a real estate transaction helping their client maximize their return-on-investment while minimizing their stress.
If you are thinking about buying and/or selling a home, let's connect. We would be honored to assist you, and will listen to your needs and wants, and share with you what you can expect if we represent you on the purchase and/or sale of your home.
Disclaimer: This blog post, any associated blog posts, and our website are not designed to and do not provide medical or legal advice, professional diagnosis, opinion, treatment, or services to you or to any other individual. Through this series, the associated blog posts, and our website, and linkages to other sites, Transformation Advisory, LLC DBA DFWREAdvisors Group, provides general information for educational purposes only. The information provided in the series, the associated blog posts, this website, or through linkages to other sites, is not a substitute for medical, legal, or professional advice or care, and you should not use the information in place of a visit, call, consultation, or advice of an attorney, mortgage professional, real estate professional, medical professional or other licensed services provider. Transformation Advisory, LLC DBA DFWREAdvisors Group is not liable or responsible for any advice, course of action, or treatment, or diagnosis, or any other information, services, or product you obtain as a result of reading this series, the associated blog posts, this website, or through its linkages to other sites.
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