This post provides some answers as to why you would choose a Realtor, and how you should go about doing so.
A Realtor (not just any Realtor) may save you thousands of dollars.
It’s your hard-earned money that’s on the line. This is precisely why you don’t want to pick your friend, neighbor, or relative just because you may not know how to say NO..!
This is no time to cross your fingers and hope for the best.
Don't Take Chances.
Asking some tough questions now will help keep more of your money in your pocket. You deserve to know how a Realtor earns his/her money.
There needs to be transparency in the real estate business.
- You need to know if the Realtor who you’re considering has any affiliated business arrangements (ABA’s). — The U.S. Department of Housing and Urban Development issued mortgage reforms designed to help consumers avoid costly and potentially harmful loan offers. The Real Estate Settlement Procedures Act (RESPA) requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. — Affiliated business arrangements allow affiliated businesses (i.e. title companies, insurance companies, lenders, movers, etc.) to pay a fee to your Realtor’s firm. — DISCLOSURE OF SUCH PAYMENTS IS REQUIRED — REFER TO LINE #28 (VAR Form #600) OF THE CONTRACT AND ASK ANY PROSPECTIVE REALTOR IF THEY WILL BE NEEDING TO ENTER ANY DISCLOSURES ON THAT LINE.
Just Say No..!
- Some firms are beginning to charge administrative fees. Watch out, these may be “junk fees” and could add hundreds of dollars to the cost of your transaction.
- There are cases where a property will be advertised with a bonus to the Selling Firm (often tied to receiving a strong, or full-priced, offer). Be especially careful here. This may come as a surprise to you, but often times the M-O-N-E-Y will cause a Realtor to forget just who they are representing. Buyer’s agents have a fiduciary responsibility to their clients. Bonus offers should never influence our decision to show a home, unless we plan to pass that bonus along to our client.
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It's Your Money
- You’ll want to know if they practice “Dual Agency”. In many states this is illegal. This is when one agent works both sides of a transaction (they try to represent both the Buyer and the Seller). The lead attorney for the Virginia Association of Realtors has advised against this practice. It is still legal in Virginia, but you should ask yourself — who is really looking out for me..?
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June 8, 2009 at 4:30 pm |
Jeff,
Thank you so much for sharing this much needed information with all of us on “Choosing A Realtor”. We are enjoying your new website dear friend!!
We were very thankful to have you as our Realtor when selling our home in Amherst earlier this year. You went way above the call duty to help us and your integrity, honesty, and professionalism was appreciated more than words can express.
Looking forward to more of your postings – keep up the great work!
Carl & Vicky