When purchasing property ( I have not seen unlicensed agents actually representing Sellers) using the services of an agent, or better yet, a REALTOR could help protect you and your investment. An unlicensed agent has no responsibility to anyone, in most cases is acting illegally and has but one motivation....money.
Do you have to be licensed to show and sell property? "I was told that as long they do not write the actual offer that they do not have to be licensed". The answer to this one is yes and no. The first answer being: Yes, if you are engaged in any aspect of the sale of property which includes showing, offering, negotiating the purchase or sale of property, you must be licensed. The second statements answer is NO, you must be licensed....see the answer to question #1.
How do you know if the "agent" you are dealing with is licensed? A simple way is to visit the California Department of Real Estate web sit at: http://www.dre.ca.gov/ . From there, you simply enter the person's name. In 99.9% of searches, if they do not appear, they are not licensed. Would you want an unlicensed individual representing you in the purchase of any property? I would hope not. At the very least, you are not getting the representation you deserve. It could also cause the contract for the property you wish to purchase to be avoidable by the seller.
Agent and REALTOR are the same....Aren't they? No, an agent is anyone licensed as an agent. An agent is a REALTOR when he or she is a member of the NATIONAL ASSOCIATION OF REALTORS and subscribes to its strict Code of Ethics. REALTORS must answer to their Broker, their Client, Their Local Association and the National Association of Realtors. This allows parties involved in a transaction, in the event of a dispute, to seek resolution through multiple channels. Unlicensed individuals answer to no one and, in the event of a dispute or legal problem must be brought to Civil Court for a resolution... If you can find them.
The National Association of REALTORS has this to say about how and why to choose a REALTOR:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® 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.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. 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 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 REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible 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 mired 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®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace 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 hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. 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 generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. 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 (or settlement).
Provided by Mission Grove Realty - REALTORS and the National Association of Realtors
Mission Grove Realty
4140 E Florida Ave. Hemet, CA 92544
(951) 927-8940
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