SELECTION OF A QUALIFIED PROFESSIONAL REALTOR
The agent you select to handle your home purchase should be well qualified to handle a wide variety of tasks. These tasks include providing information about the communities being considered, the schools and other factors of concern including area history as it has affected values, also proposed neighborhood and city changes that also could influence the desirability and value of the areas.
The agent should also provide instruction about the purchase process, the documents involved, and the timing considerations and encourage buyers to obtain a letter of pre-approval from a qualified lender that will be included with a purchase offer. After researching available properties to satisfy the buyers' needs, the review process of visiting probable candidates begins.
When the property for purchase has been selected, the buyer and agent can begin the process of preparing and negotiating an offer.
Buyers can expect their real estate agents to review of all documents used in this purchase process as well as explain all contingencies, disclosures, and possible inspections.
Buyers must rely upon their real estate agent for information and for guidance in formulating the terms of an offer. The information needed includes selling prices for all recent sales of comparable properties and analysis of recent market trends that are affecting prices, such as the impact of financing changes and the effect of increased competition, as in recent short sales and foreclosures.
When market trends do not pose a major impact of pricing, the sales of recent comparable properties can be used to indicate a price to offer. The ratio of asking price to selling price of recent sales can be used to determine how much negotiating or "flex" room to allow in the offered price. If the seller's motivation is known that also helps in determining the price for an offer.
Needless to point out, in all markets some properties are just so unique and so desirable that multiple offers will be submitted. This also occurs when property is listed at a price well below market value. In these instances the consideration is how high to begin the offer to at least receive a counter offer from the seller!
In such situations, an offer presented by a known real estate agent with a good reputation in the real estate community will have an advantage over offers from lesser known agents. This occurs because the seller and seller's agent want confidence in the reliability of the buyer and a known and respected Realtor provides an extra measure of strength to an offer presented.
Every aspect of the negotiating process is critical to success. Buyers benefit from being represented by highly skilled Realtors who know the real estate market, the laws, and the documents that apply. Their experience also provides an edge in negotiations.