| Article 1 - Achieve "Win-Win"
Lynda Lynde Real Estate Client Advocacy
How to Achieve a "Win-Win" Real Estate REALTOR® Experience
Often, client and REALTOR® have never met before. What little clients can glean from the new REALTOR'S® website is about all they have to go on, unless they have been referred by their home-town REALTOR®. It is common that neither your home town REALTOR® nor you have actual knowledge of the new REALTOR; the new agent is a recommendation, a starting point. Your home-town REALTOR® most likely has researched his/her real estate resources to find a REALTOR® for you. This makes the process tenuous at best.
How do you achieve a "Win-Win" Real Estate REALTOR® Experience? Here are some guidelines for choosing a satisfying relationship with a REALTOR® and what you can do to help make the experience work better for you.
1) Finding an experienced REALTOR®
First, an experienced REALTOR® with years of full-time service in a given area will know the area better than an inexperienced junior associate. Your real estate transaction will be better if a junior associate is teamed up with an experienced agent, as long as the experienced agent is fully involved and not overly busy with his/her own transactions or partially retired.
2) How do you know who is a knowledgeable REALTOR®?
Check the REALTOR'S® credentials. A professional REALTOR® serious about providing good service will take advantage of receiving the best education available to him/her in their profession. Hopefully, the REALTOR® will post a page describing what his/her credentials signify. If you are looking for residential homes you don't need a CRB (Council of Real Estate Brokerage Manager), or a CCIM (Certified Commercial Investment Member) or a RRS (Resort and Recreation Specialist), but you may need a SRES ( Seniors Real Estate Specialist), a GRI (Graduate REALTOR® Institute), CRS (Certified Residential Specialist) or an ABR (Accredited Buyer's Representation).
My point is there are many different specialties in real estate, as there are in other professions. While REALTORS® may have experience in many of these specialties; it would not be a good idea for them to represent themselves as experts in ranch or farm sales, for instance, if they did not have experience in those areas. I believe the client is better served if the REALTOR® specializes, and refers clients to others who have expertise in those particular areas of real estate.
3) Getting Pre-qualified.
Before you make contact with a REALTOR® it is very important to get pre-qualified if you are going to be financing your real estate with a lender. You can do this online, preferably with a lender in the new location in which you will be relocating. It is a fact that lenders in the new location will understand the economics of their area better than someone from out-of-state. They will be aware of the appraisers, title companies, zoning restrictions, surveyors, home inspectors, REALTORS®, and the many other local "players" far better than some one on the outside. This works in your favor. You will then be armed with knowing what will be required of you for financing, and the all important "how much you can qualify for."
Of course, this does not mean you are mandated to extend yourself to the full limits of that qualification, but it will indicate whether you will be able to afford a home in the market you are heading into, or whether you may need to rent for a while to build up a bigger nest egg. Or perhaps you have a home to sell before you can buy. If you are a first time home buyer, there may be many options open to you. None-the-less, depending on the market, with a knowledgeable REALTOR® and the right offer, there may be some seller assistance within the lender guidelines.
4) Prepare a list of important criteria for your new home and share with your agent.
Here is just a small list, to get you started:
a) What features of your current home do you like best?
b) What don't you like about your current home?
c) Do you know the square footage of your current home?
d) Do you know the size of your current land?
e) Is your current home too small, or too big?
f) Do you prefer older homes, newer homes, fixer uppers, condo or townhomes?
g) Do you prefer one level rancher, or multi-level? Open or formal floor plan?
h) Garage or carport needs?
i) Children, hobbies and pet needs?
j) Are you an eagle that needs sky and views, or privacy, or do you prefer nice cozy friendly neighborhoods? Do you like gardening, room for the kids to play, fenced yards, or would you rather spend more time for cultural or recreational pursuits? Maybe you need space for toys? Covenants can make a big difference for some of these important considerations.
k) What about noise, barking dogs, street parking, sunlight, windows, kitchen importance, closets/sizes, storage, lighting, bathrooms, computer connections/rooms, furniture size for rooms, and handicap accessibility?
l) City or country preference? Estimated desired time, or miles to airport, hospital, or job?
m) Are you prepared to compromise your dream list a little? Getting everything you want is not always practical or possible, and homes often can be modified to meet your needs as long as the land and zoning regulations allow for these modifications. If you have a significant other relationship it is hoped that you have already found ways to accommodate the important needs of each other. A good REALTOR® will attempt to incorporate the most important desires of each partner in the case of joint ownership.
5) The all important first meeting with your REALTOR®.
Time spent actually getting to know each other is time well spent. Immediately jumping into a REALTOR'S® car to tour properties in the region can also be a waste of valuable time. Searching for the right property can be stressful at best. You need to be as open and forthright as possible during this meeting and your REALTOR® needs to be a good listener with empathy for your needs and concerns. You also need a REALTOR® who will not make you feel rushed. When you are getting to know a new area it doesn't matter that your REALTOR® may already have a perfect house in mind for you. It takes time to become educated about the market in the new area so that you can feel empowered and confident in your choice. It is you who will be living in your new home and paying the price for years to come. If for some reason you don't feel that you're going to get the kind of representation you are looking for, and you have not signed an exclusive working relationship, it would be the honest thing to let your REALTOR® know as soon as possible that it is not working out.
6) What about FSBO "For Sale By Owner?"
Yes, people do buy homes directly from owners, but your REALTOR® can and should represent you even to "For Sale By Owner" Sellers. It is important to note that a "For Sale By Owner" only represents the seller. Since sellers are not represented by a REALTOR®, they are not compelled to divulge hidden defects, nor in any way represent anyone but themselves. When you consider the size of the investment you are making and the many pitfalls that can come with home ownership, is it wise to take this risk?
If a "For Sale By Owner" seller is smart, he/she can negotiate a one-time showing agreement with your REALTOR®, and pay an agreed-to commission if a sale takes place. If they are not, you can agree to pay the commission to your REALTOR®. It is generally understood that when you pay the commission as the buyer, you are going to expect to be benefited by representation. Further, you may expect that the sales price will reflect a reduction commensurate with the added commission expense. And please don't forget that all-important professional home inspection contingency, which may lead you to other important professional inspectors. Pay special attention to health and safety issues.
7) Acquaint yourself with the new home's location and any environmental issues.
When you do find the perfect home, be sure to go back and drive-by the home on your own during different hours of the day, and by different routes. Hopefully your REALTOR® will be knowledgeable about the different environmental issues of the community and will share them openly with you. All communities in this day and age have issues of one kind or another and it is up to you to decide just how important any issue may be in your mind.
8) Understanding the art of negotiation.
A good REALTOR® understands the art of negotiation. The how much to offer decision is yours, but remember your REALTOR® will have to be able to persuade the seller to accept your offer. This means your agent will want to present you in the best light possible within the parameters of client-REALTOR® relationship confidentiality. This includes (but is not limited to) your financial ability, contingencies, length of time to close, why you like the property, as well as a little background about you. Sellers and buyers like to know motivation.
9) What does "win-win" really mean?
A "win-win" is best achieved when all parties to a transaction come to the closing table feeling that their objectives have been met. No one likes to feel they have been taken advantage of. The sellers look forward to moving on with their lives, and the buyer looks forward to enjoying the home the seller is relinquishing. Both seller and buyer have dreams and one thing in common; each has found something special about this particular home or acreage. This is a bond they share. The best closings are when you see happy exchanges between buyers and sellers. And folks, that is what "win-win" is all about!
©Lynda Lynde, All Rights Reserved
Lynda Lynde, Broker/Owner, REALTOR®, ABR, CRS, GRI
www.HelenaMontana.info Lynda@HelenaMontana.info
Lynda Lynde Realty, LLC
296 Willowbrook Drive, Helena, Montana 59602
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