Home Buyers
· Check your credit report for accuracy and completeness.
Buyers with inaccurate information on their credit report may have a hard time obtaining financing, or be offered loans at higher-than-market interest rates. The Fair Credit Reporting Act gives consumers the right to a free credit report from each of the three nationwide credit reporting companies every 12 months. Visit https://www.annualcreditreport.com to request a report.
· Use the Internet wisely.
NAR research shows that 77 percent of all recent buyers used the Internet to search for homes. Not all real estate Web sites are created equal, however. Buyers who provide personal information online to be referred to a network of real estate professionals are, in effect, authorizing the owners of that site to sell their information to third parties. To find a Realtor®, go directly to the source – our web site at www.tcmls.org or www.realtor.com
Many buyers use the Internet to research mortgage lenders. Be careful when sharing financial or other personal information over the Web - predators can steal this data and the user's identity. Realtors® can refer buyers to reputable, reliable lenders.
· Educate yourself about mortgages
Many mortgage products are available in today's market, but not all of them work for all buyers. NAR warns consumers against exotic loans and predatory lending practices that can poison the home buying process and trap unsuspecting borrowers into years of financial hardship. Visit www.REALTOR.com and search on "specialty mortgage" to read the brochure, "Shopping for a Mortgage? Do Your Homework First," and consult a Realtor® to learn about different financing options and their implications over time.
To protect yourself, work with a Realtor® who knows the local market, and check his or her credentials with the Realtor® board or association in your area.
· Hire the right real estate professional for the job.
When you're buying a home, would you know what to do if your financing fell through the day before closing, your home inspection found a termite infestation, or your future neighbors had just built a wall on your property?
As a buyer, you want someone who knows the market and can handle your particular needs, whether it's identifying homes and neighborhoods, negotiating for the best deal, or coordinating the 20+ steps between contract acceptance and closing.
Sellers
· Know your home's value.
Beware of companies offering to buy your home to save you the "hassle" of putting it on the market - these companies often profit at the seller's expense. Ask your Realtor® for a comparative market analysis, or CMA. These real estate professionals will analyze recent sales and market conditions to provide a realistic assessment of your home's value, and can suggest strategies for the best sale.
· Protect yourself and your home.
Don't allow random passersby into your home unescorted. A serious buyer will be working with a real estate professional or should be willing to contact your agent to schedule an appointment. Lock valuables away before an open house - the agent onsite will be monitoring traffic, but it's impossible to be everywhere at all times.
· Understand the purchase contract.
A Realtor® can help evaluate purchase offers and advise you on counteroffers and contract acceptance. It is important to know how contingencies such as appraisal, financing and inspections will affect the transaction, and understand their implications for you as the seller. Remember, a high price offer is worthless if the buyer never makes it to the settlement.
· Hire the right real estate professional for the job.
Relying on the experience of a REALTOR® makes financial sense. An NAR survey of recent home buyers and sellers found that the median home price for sellers who use a real estate agent is 16 percent higher than a home sold directly by an owner; $230,000 vs. $198,200.
NAR encourages innovation and competition, and recommends that home sellers interview Realtors® to evaluate their qualifications and fit. Don't make an agent's commission the sole deciding factor - you wouldn't put your life in the hands of a doctor because he or she had the lowest fee; why would you want to do that with your largest financial investment?
How to Choose a Real Estate Professional
To find a true real estate professional - one who will represent your interests and provide valuable insight and advice regarding what is likely your biggest investment - follow these steps.
· Do your research.
Call local brokerages for agent recommendations, and specify whether you are buying or selling a home.
Visit www.tcmls.org or www.REALTOR.com to search for Realtors® across the country. This site allows visitors to search for either a specific Realtor®, or for those who specialize in specific neighborhoods or have specific certifications and designations.
· Ask trusted friends and relatives for referrals.
According to the 2005 National Association of Realtors® Profile of Home Buyers and Sellers, 44 percent of all recent buyers were referred to their real estate agent through a friend, neighbor, or relative.
· Interview
Ask each about their business approach and philosophy (do they offer full service, or will you have to assume some responsibilities in the transaction); experience; designations and training; and referral network (home inspectors, lenders, contractors, etc.). Home sellers should also ask about the agent's marketing plan.
· Make sure your agent is a Realtor®.
A Realtor® is a licensed real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics, which obligates Realtors® to be honest with all parties involved in a transaction, whether it is the buyer, seller, or cooperating agent.
A real estate licensee has passed an exam; Realtors® are real professionals