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What is a Real Estate Professional?

More commonly known as a real estate broker or agent, a real estate professional is an individual who provides services in buying and selling homes. The real estate professional is paid a percentage of the home sale price by the seller. Unless you have specifically contracted with a buyer’s agent, the real estate professional represents the interests of the property seller. Real estate professionals may be able to refer you to local lenders or mortgage brokers, but are generally not involved in the lending process.

Why should you get a real estate professional?

Buying and selling real estate is a complex matter. At first it might seem that by checking local newspapers or online sites you could quickly find the right home at the right price. But a basic rule in real estate is that all properties are unique. No two transactions are alike. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and have the skills to assist you in navigating through the home buying process.
Some reasons for using a real estate professional or agent are:

1. Your agent can help you to determine your buying power—that is, your savings plus your borrowing capacity. If you give an 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.
2. Your real estate agent 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. Furthermore, a knowledgeable agent will be familiar with many of the special home buying programs.
3. Your real estate agent can assist you in the selection process by providing objective information about each property. Agents have access to a variety of informational resources. They can provide local community information on utilities, zoning, schools, entertainment, shopping, etc.
4. Your real estate agent can help you negotiate. There are many factors to consider when negotiating the purchase of a home, including but not limited to price, financing, terms, date of possession and often the inclusion and 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 agent provides experience in conducting a thorough evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, plumbing and electrical systems, just to name a few. Your agent can assist you in finding qualified 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 full of confusing information about the status of past owners or rights of access to the property. The title to most properties will have some limitations; for example, easement (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems later.
6. Your agent can help you in understanding the different financing options and in identifying qualified lenders. Agents work with many different lenders and they could find the lender most appropriate for your financial situation. For example, they can let you know if you qualify for special first-time homebuyer programs that often feature low down payments and/or down payment assistance. Furthermore, an experienced agent will also be familiar with lenders that may have more relaxed underwriting criteria in the event you may have had previous credit challenges.
7. Your real estate agent can guide you through the closing process and make sure everything flows together smoothly.

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 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 real estate professional.

Where do you find a qualified real estate professional?

There are many places that you can go to search for a real estate agent:

• Referral from a family member or friend
• Referral from lender
• Open House
• Yellow pages
• Newspapers and advertisements
• Online websites (i.e. Realtor.com)

Once you have selected a real estate agent they should provide you with an agency disclosure that describes your relationship with the agent and details the agent’s responsibilities. The agent should then be able to provide you with information on the current market conditions, financing options and negotiating issues that might apply to a given situation. You should also remember that market conditions can change and the strategies that apply in one negotiation may be inappropriate in another. For example, if your agent was able to convince the owners who sold a home to your cousin to make certain repairs to the property, does not mean the agent can guarantee the same concessions when he/she finds a home for you. Each transaction is unique and market conditions are a big factor in determining how the process proceeds. However, the agent should keep you updated and alert to each step in the transaction process.

Questions to Ask a Real Estate Professional

1. How long have you been in real estate?
2. Are you a full-time real estate professional?
3. Are you familiar with the community in which I want to look?
4. How many homes have you sold in the last year?
5. What is the average sale price of the homes you sold last year?
6. Do you usually work with sellers or buyers?
7. How many buyers are you presently working with? Are you acting as the exclusive "buyer's agent"?
8. How many sellers are you presently working with?
9. What do you consider your strengths?
10. Can you please provide the names of three homebuyers as references?

Now that you’ve selected a qualified real estate professional, what’s the next step? Getting pre-approved for a loan!

Sources:
http://lahd.lacity.org/lahdinternet/
http://ww.lanhs.org