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For Buyers - Why Use a REALTOR®
 Buying or selling! The first question I would ask is shall I work with a REALTOR®. The next thought; shall I work with an experienced REALTOR® like Martin Elder?
Important changes in the last five years have directly impacted Real Estate transactions in Ontario, and this affects buyers, sellers and REALTORS®. The internet has also changed the way we do business. The internet is an excellent tool for REALTORS® allowing them to communicate with clients more effectively. However, the ease of internet information has led some people to believe the internet is their ultimate tool in buying or selling. The public MLS® site does not have all the answers. It was not designed for that function. The site is hosted and paid for by REALTORS®.
The act of buying and selling is psychological study. There are dynamic and complex human interactions in Real Estate sales. The financial values are high and seemingly ever increasing. There are significant legal issues to consider. A home purchase is a major financial investment. Contract law is at the foundation of all agreements of and purchase and sale. A REALTOR® is a wise addition to your investment team.
Lawyers, Doctors and Architects have specific duties in protecting their clients, and the same is true of the REALTOR®. A REALTOR® is a licensed professional who has practical training in Real Estate law, investment analysis and a thorough knowledge of the housing industry. Periodic and specific training is ongoing. Ontario Real Estate Association has drawn up a code of ethics that defines the proper conduct of member REALTORS®. The ethical principals written by the Ontario Real Estate Association was designed to instill a high level of professionalism and public confidence.
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®.
Overview
REALTORS® work as independent businesses under the leadership of a Broker. In Ottawa, familiar Broker names include Royal Lepage, Coldwell Banker, Century 21, Sutton, and Remax. The newest and fastest growing company in the National Capital region and North America, is the company we work with: Keller Williams Ottawa Realty located at Bronson and the Queensway.
Agency
Current practice requires that a REALTOR® inform the public of the nature of agency relationships and establish a distinct written relationship with their client: be they buyer or seller. The practice of pledging to work with one REALTOR® should not be considered limiting for the buyer. In fact the buyer is recruiting the REALTOR® to be part of the buyer’s team. A REALTOR® may represent the interests of the seller and be the seller’s agent. The REALTOR® may represent the interest of the buyer and be the buyer’s agent. Or, in unique situations the REALTOR® may represent the interests of both seller and buyer, however in this situation both the buyer and seller are required to acknowledge in writing that they are aware of and accept what is known as a dual agency situation.
Your REALTOR® will quickly establish this important agency relationship at the first meeting and will ask you to review a pamphlet entitled “Working With a REALTOR®”. Have confidence! Open, factual communication clears up misunderstanding. Don’t you wish all professional relationships were straight forward from the start?
- Your REALTOR® has many resources to assist you in your home search. Perhaps the property you are seeking is available but not actively advertised in the market, and it may take some investigation by your agent to find available properties.
- Your REALTOR® can assist you in the selection process by providing objective information about each property such as historic information. REALTORS® have access to a variety of exclusive informational sources. REALTORS® can provide information on the community, on utilities, zoning, schools, etc. There are two things you'll want to establish with your agent. First, will the property provide the environment I want for a personal home or is it an investment? Second, will the property have resale value when you are ready to sell?
- 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 time period for you to complete appropriate inspections and time for investigation of the property before you are committed to purchase. Your agent can advise you as to which investigation and inspections are recommended or required.
- Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for carpenter ants, dry rot, asbestos, faulty or unsafe structure, roof truss movement, UFFI, septic tank and well tests, to name a few. Your REALTOR® can assist you in finding responsible professionals to do many of these inspections. You will want to see a preliminary report on the title of the property. Clear title indicates ownership of property that can be easily transferred to the purchaser. Title can be clouded 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® can help you resolve issues that might cause problems at a later date.
- Your REALTOR® can help clarify subtle financing options and in finding lenders.
- Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
- When selling your home, your REALTOR® can give you up-to-date statistics on the current the marketplace, including and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum of trouble.
- Your REALTOR® markets your property to other REALTORS® and to the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the saleable features of your property. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a REALTOR® other than yours will locate a buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other REALTOR® through an instantaneous Multiple Listing Service®, MLS® or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® use these cooperative relationships when they benefit their client.
- Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will routinely pre-screen and accompany qualified prospects through your property.
- Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement of sale is the beginning of a process of appraisals, inspections and financing. There are a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will likely turn into a successful closing.
- Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing.
Build a relationship with a REALTOR® and enjoy a powerful advantage in selling!
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