1. How do I determine if I’m ready to buy a home?

The following four questions are among the most important when determining if you should consider a home purchase.

1. Do you have a steady job history?

If you have been working consistently for at least the last two years, a lender will consider this to be steady employment. This does not mean that to be approved for a mortgage loan, you need to have held the same job for the last two years. In fact, job moves are looked on favorably if the result has been equal or more pay. However, if you have been working continuously for less than two years, this doesn't necessarily mean you won't be approved for a mortgage loan. The important thing is to be able to reasonably explain any gaps in employment. For example, if you were just discharged from the military, recently finished school, work seasonally with work gaps between seasons, were temporarily laid off, or had an illness that prevented you from working, you may still be able to qualify for a mortgage loan.

If you answer yes:

This means you have been working continuously for the last two years, or if you have not, you are able to provide a mortgage lender with reasonable explanations for any gaps in employment. If you can demonstrate a steady level of income and job history, the lender will have evidence of your capacity to pay back a mortgage loan.

If you answer no:

Saying "no" to a stable work history means you have not been consistently employed over the past two years and have not kept up a regular and even income level. You may have been fired for cause. You might have big gaps in your job record. Or there may have been dips in your income level that you cannot satisfactorily explain. If this is the case, you may have to delay borrowing money for a home until you can show that you have a steady income and stable work history.

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2. Do you have an established and favorable credit profile?

Before lending you money, lenders want to see a track record of debts owed and duly repaid. Your lender will order a credit report to verify your debts, the amount of your monthly payments, and how many months or years you have left to pay off your debts. Credit bureaus keep records of consumer debt and how regularly these debts are repaid. Credit bureaus compile these reports by obtaining information from a wide range of sources--credit card companies, banks that have given you car loans, department stores and gasoline companies that provide credit cards. If you have never had any credit cards and have never borrowed money from a financial institution, you can still establish a credit history by documenting your monthly rent payments to current or previous landlords and your monthly payments to utility companies for electricity, gas, water, and telephone services. A mortgage lender can probably help you put this information together. You can find out what information is in your credit file by contacting a credit bureau. They usually are listed in the yellow pages of your phone book under "Credit Reporting Agencies" and will provide you with a copy of your report for free or for a nominal fee. The major companies are Experian (formerly TRW., Inc.), CBI Equifax, Inc., and Trans Union . Contact any of them for your credit report. See if any information is missing or inaccurate, so you can take steps to have the report corrected if necessary.

If you answer yes:

Saying "yes" to a good credit record means you have a history of paying your rent and other bills on time and will be able to prove that through a credit report or through compiling a nontraditional credit history. Although lender credit standards may vary, being late on a payment or having gone over your credit limit once or twice doesn't necessarily mean you don't have good credit--particularly if you can reasonably explain why. But if you show a repeated pattern of not paying accounts as agreed, it will affect your credit history. A good credit history tells the lender that you pay your obligations on time and use credit wisely-- important information for a lender to know when you want to take out a mortgage loan.

If you answer no:

An unfavorable credit profile may mean you do not pay your bills on time or you currently have more credit obligations than you have been able to handle. Information that may be considered negative includes late payments, repossessions, accounts turned over to a collection agency, judgments, liens, and bankruptcies. Negative information in your credit file may lead creditors, such as mortgage lenders, to deny you credit. If your credit report shows that you do not have a good credit history, and the report is accurate, now may not be the best time to apply for a mortgage loan. Instead, you should try to improve your credit profile. Bring your payments up to date; pay off some of your debts; and work on paying your bills on time. Over time, you can build a profile that shows you are a good candidate for a loan, even if you have had serious credit problems in the past. For example, a foreclosure on an earlier mortgage does not mean you can never get a mortgage for another home. But most lenders prefer that three years go by before they will consider you for a new mortgage, and will want to know why there was a foreclosure. Similarly, if you have declared bankruptcy, most lenders won't let you assume a mortgage debt until at least two years after discharge of the bankruptcy.

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3. Have you saved the money for a down payment and closing costs?

Nearly all home buyers require a mortgage loan from a financial institution. However, few loans are for the full purchase price of a house. Instead, a lender will insist you contribute some portion of your own funds (the down payment) as part of the deal. Today, buyers can pay as little as 5 percent down. (In fact, some programs such as the Fannie 97® mortgage, require as little as 3 percent down). There are also a number of government-sponsored loan programs, including Federal Housing Administration (FHA), Veterans Administration (VA), and Rural Housing Service (RHS) loans, that require little or no down payment for qualified borrowers. Typically, however, most lenders require some form of down payment. For a $100,000 home, a 5 percent down payment requirement would be $5,000. You also will need to pay a number of additional costs, called closing costs, that cover the legal transference of a property to your name and other costs associated with your taking out a mortgage. Closing costs generally range from 3 percent to 6 percent of the sales price of the home. So, if you were to buy a $100,000 house with a 5 percent ($5,000) down payment, you could expect to pay between $3,000 and $6,000 in closing costs. Think about how much houses cost in your area and the type of mortgage down payment your loan will require. Then calculate the funds you have available to you for a down payment and closing costs.

If you answer yes:

Congratulations! Saving sufficient funds for closing costs and a down payment is usually one of the hardest parts of being ready to buy a home. If you believe you have sufficient funds, you are in a good position to shop for a mortgage and get pre-qualified by a lender, so that you know how much you can borrow based on your income and existing debt. When you do apply for a loan, your lender will verify that you have the funds you say you do, so be sure to be truthful about the amount you really do have available.

If you answer no:

If you do not now have at least a part of the money saved, you may be able to enlist the aid of a relative or a government or nonprofit agency that might give or loan you the money. Local housing agencies often offer loan terms that include no down payments. (Check with your state or local housing authority. The phone numbers usually can be found in the government "blue pages" of the phone book.) However, if this type of down payment and closing cost assistance is not available and you have not already saved the money for at least part of those expenses, this probably isn't the right time for you to buy a house. Instead, you should begin to budget some money from every pay check that you can put into a savings account. The more consistently you save money, the better your chances to apply for a mortgage in the future.

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4. Can you afford monthly mortgage payments for the house you want?

Generally, the amount of your monthly mortgage payment is limited to 28 percent of your gross monthly income. The amount of your total monthly debt is limited to 36 percent of your gross monthly income. Staying within these lender guidelines will give you a certain range of monthly mortgage payments you can afford. The amount of these payments will depend on current interest rates.

If you answer yes:

If you calculate that your income and your current debts are sufficient to allow you to afford monthly mortgage payments for a home at a certain sales price and at a certain interest rate, then your next step may be to get to know what types of homes are available to you in the price range you can afford. You may wish to visit open houses advertised in the real estate section of your local newspaper, or contact a REALTOR® who can show you homes in your price range. You may also want to get pre-qualified by a mortgage lender, who can help verify that the calculations of your buying power are in the ball park of the amount of the money the lender will provide you for a mortgage.

If you answer no:

If after investigating various types of mortgages, you are not happy with the mortgage amount you will qualify for, you may need to lower your sights and simply recognize that you'll have to buy a less expensive "starter home" or continue to rent. You may decide to wait to apply for a mortgage until your income increases. For example, is it possible for you to put in extra hours on the job to build up your income? Or do you or your co-borrower, if there is one, expect a raise in the near future? If so, you may wait a bit to buy a house so that you can qualify for a higher mortgage amount. In addition, if your existing debt is too high in relation to your income, you may be able to qualify for a larger mortgage by paying off some of this debt.

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5. As a buyer, what questions should I ask?

When you're in the market for a home, it seems as if there are millions of questions to ask -- and no doubt plenty more. As buyers we become so wrapped up in the physical aspects of the house -- the rooms, amenities, and structure -- that we give less attention to quiet issues which may strongly impact our ability to enjoy a home.

What kinds of factors will affect your quality of life? The obvious ones are the first to come to mind: the distance to work, the special programs available through the local school system, and neighborhood shopping and recreation.

Those factors, while important, may not touch the issues specific to your situation. Consider the thousands of families who have an aging parent residing with them. The average age of our population has grown older, meaning we are living longer lives, spending longer periods as widows and widowers, and increasingly choosing to take up residence with our children. In such situations, the distance from our homes to the nearest hospital is vitally important.

Public transportation is also something we tend to overlook in a nation of drivers. As more of us get older, many elect not to drive, thus nearby public transportation becomes important --especially if buses stop frequently.

Public safety is a major issue, and proximity to police stations, emergency medical services and fire houses is important. Community groups-- including homeowner associations, PTAs, and a neighborhood crime-watch-- are also important.

No one wants to hassle with parking issues, so what is the parking situation? What if you have guests. Take note of any parking restrictions, which could result in a visitor's car -- or your car -- being towed from in front of your house.

What about trash pick-ups? Okay, this isn't a glorious subject, but consider the alternative. In rural areas there are often communal dumpster zones to which residents haul trash. If the community will pick-up from you, great. If they recycle, better. Check for pick-up dates, if Mondays ask how holidays are handled.

Is the area impacted by local conservation efforts? For example, what about water supplies in the summer? Electric power?

If you're moving to a new community you might look forward to such recreational facilities as clubhouses, playgrounds, exercise rooms and other offerings. Before you sign on the dotted line, check out the "fine print" details. Is use free or an additional cost? Are there plans to build a playground or other amenity next to the property you want to purchase? Do you regard a playground as a convenience or noisy problem?

What about that nice stand of trees behind the lot where you want to build--is that land being preserved or will a zoning change allow it to become a gas station next year?

Another issue concerns property taxes: You know what the owners pay today, but is that what you will pay tomorrow? Property tax rules may allow special benefits for older citizens, veterans, or long-time residents--benefits which may not apply to you.

Here's one more: That nice condo or homeowner association you're thinking about. You know about their assessments now, but are they planning a "special" assessment soon? If yes, you could be out big money (or you could make an offer which is discounted to reflect the cost of the special assessment).

Are there more questions to ask? You bet. But the ones above are a good place to start.

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6. Who represents you when you are buying a house?

One of the hot topics facing the world of real estate right now is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that nothing much has changed. But they are wrong.

The topic of agency is important to you because it answers the most basic and fundamental question that can be asked of any real estate professional: Who do you represent in this transaction?

Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have somebody going to bat for you in this transaction. Well, the issue of agency is important because without it, we can never be sure who represents whom.

Here's the scenario: You meet a really nice agent at an open house named Bonnie. Even though Bonnie's house is not right for you, she tells you she has others to show you that fit your needs exactly. You spend an hour or so with Bonnie looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Bonnie directly how much cash you have and how high will you go? What does Bonnie say?

Here's the answer: Unless you have signed a "Buyer Agency Agreement" with Bonnie making her your buyer agent, she is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, she has a fiduciary obligation to the seller to disclose to him any information she has that might "promote or protect his interest" in the transaction. Guess what? Bonnie has that information.

The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want. Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller's agent?

1. Make sure that the agent you are working with has agreed, in writing, to represent you as a "Buyer's Agent." This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even home owners selling their own homes, without involving your buyer's agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.

2. Never say anything to anybody unless you would be willing to have that information repeated into a seller's ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.

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7. How Much Home Can I Afford?

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.)

Like other rules of thumb, this one is handy and can give you a general idea of how large a mortgage you can afford.

But, because it is so simple, it doesn't take into account all the information that will help you feel comfortable with your mortgage payments.

If you are buying a house with someone else (spouse, parent, adult child, partner/companion, brother or sister or other relative), you should consider your co-purchaser's earnings and existing debts as well. Remember, if you apply for a loan with somebody else, you and your co-borrower are both legally responsible for repayment of the mortgage.

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.

Your down payment

If you are a first-time home buyer, the price you can afford to pay for a house may well be limited by your ability to come up with the required down payment and closing costs. If you haven't accumulated much savings, you may want to set aside funds for a down payment on a regular basis from your paycheck. Monies in your checking and savings accounts, mutual funds, stocks and bonds, the cash value of your life insurance policy, and gifts from parents or other relatives may all be suitable sources for a down payment.

The biggest hurdle for most home buyers is saving enough money for the down payment. This can be particularly hard for first-time buyers. Many times it takes years of careful budgeting of their spending for first-time buyers to save enough for the required down payment.

Depending on the lender and loan type, you may be able to get a mortgage with as little as 3 percent or 5 percent down. However, putting less than 20 percent down often means you will be required to purchase private mortgage insurance. Private mortgage insurance (PMI) helps protect the lending institution in case you fail to make payments on your mortgage.

Typically, these costs will be added to your monthly mortgage payments and to your closing costs. In helping you decide how much money you feel comfortable paying as a down payment, you should think about the many other expenses that go along with buying a home. There will be moving expenses and maybe home decorating costs. You may be about to face other expenses such as buying a new car.

You should try to avoid moving into the home of your dreams with a savings account on empty. In many cases, your lender will want you to have two months of mortgage payments saved up as a cash reserve when you apply for your mortgage.

Your closing costs

In addition to the down payment, you will also need to consider closing costs. The closing is the final step during which ownership of the house is transferred to you. The purpose of the closing is to make sure the property is ready and able to be transferred from the seller to you.

Closing costs generally range from 3 percent to 6 percent of the amount of the mortgage. So, if you were to buy a $100,000 house with a 5 percent ($5,000) down payment, you could expect to pay between $2,850 and $5,700 on your $95,000 mortgage. Sometimes, you can negotiate with the seller of a property to pay some of your closing costs, which will reduce the amount of money you will need to bring to closing.

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8. How much will a financial institution lend you?

Apart from having available funds for a down payment and closing costs, the other major factor limiting how expensive a house you can buy will be how much you can borrow.

When you apply for a mortgage, the lender will consider both your earnings and your existing debts in determining the size of your loan. Lenders generally use the following two qualifying guidelines to determine what size mortgage you are eligible for:

The amount of money you owe for mortgage payments, property taxes, insurance, and condominium or co-op fee, if applicable, should total no more than 28 percent of your monthly gross (before-tax) income. This is called the housing expense ratio.

The amount of money you owe for the above items plus other long-term debts should total no more than 36 percent of your monthly gross income. This is called the total debt-to-income ratio.

Basically, lenders are saying that a household should spend no more than about one-fourth of its income (28 percent) on housing and no more than about one-third of its income (36 percent) on total indebtedness (housing plus other debts). Lenders feel that if they follow these guidelines, homeowners will be able to pay off their mortgages fairly comfortably.

These lender ratios are flexible guidelines. If you have a consistent record of paying rent that is very close in amount to your proposed monthly mortgage payments or if you make a large down payment, you may be able to use somewhat higher ratios. Some lenders offer special loans for low- and moderate-income home buyers that allow them to use as much as 33 percent of their gross monthly income for housing expenses and 38 percent for total debt.

When you go to apply for a mortgage, the lender will use all the relevant data -- your income, your existing debts, the purchase price of the house, your down payment, the interest rate on the loan, and the cost of property taxes and insurance -- and calculate whether you qualify to borrow the amount of money you need to buy the house.

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9. What can help make house-hunting a positive and rewarding experience?

1. Location counts. You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it's in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years.

2. Make a list. Do you (and your spouse, if you're married) really know what you need and want in your home? You'll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don't want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn't suit your needs. Tip: Start compiling your wish list by thinking about what you like and dislike about your current home.

3. Do your homework. Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Bay East website and throughout the web . Go surfing. Get educated. Become empowered.

4. Get pre-approved for a mortgage. Your top-dollar home price is a function of your household income, your credit worthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think.

5. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home.

6. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you're relocating to a distant community and want to see a dozen homes in one day. There's no sense in torturing your feet unnecessarily.

7. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you'll know what decisions you'll face when you make an offer.

8. Relax. Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.

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10. How should I select a REALTOR® when buying a home?

Not all agents or brokers are REALTORS® -- there is a difference.

As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world's largest professional trade association. They can then call themselves REALTORS®.

The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR® who belongs to an MLS will give you access to the greatest number of homes.

Using an agent and the obligations that are owed to you

An agent is bound by certain legal obligations. Traditionally, these common-law obligations are to: Put the client's interests above anyone else's; Keep the client's information confidential; Obey the client's lawful instructions; Report to the client anything that would be useful; and Account to the client for any money involved.

NOTE: A REALTOR® is held to an even higher standard of conduct under the NAR’s Code of Ethics. In recent years, state laws have been passed setting up various duties for different types of agents. As you start working with a REALTOR®, ask for a clear explanation of your state's current regulations, so that you will know where you stand on these important matters.

The difference between a buyer's and a seller's broker

Suppose you sign an offer to buy a home for $150,000. You really want the property and there's a chance other offers are coming in, so you tell the broker that "We'll go up to $160,000 if we have to. But of course don't tell that to the seller." If you're dealing with a seller's agent, he or she may be duty-bound to tell the seller that important fact. In most states, the seller's agent doesn't have any duty of confidentiality toward you. Honest treatment might require that the agent warn you that "I must convey to the seller anything that would be useful so don't tell me anything you wouldn't tell the seller."

TIP: If you're dealing with seller's agents, it’s a good idea to keep confidential information to yourself. These days many home buyers prefer instead to hire a buyer's broker, one who owes the full range of duties, including confidentiality and obedience, to the buyer. A buyer's broker is often paid by the seller, regardless of the agency relationship.

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11. How should I evaluate an agent?

In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent. The first question you should ask is whether the agent is a REALTOR® . You should then ask:

Does the agent have an active real estate license in good standing? To find this information, you can check with your state’s governing agency.

Does the agent belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service? Multiple Listing Services are cooperative information networks of REALTORS® that provide descriptions of most of the houses for sale in a particular region.

Is real estate their full-time career?

What real estate designations does the agent hold?

Which party is he or she representing--you or the seller? This discussion is supposed to occur early on, at "first serious contact" with you. The agent should discuss your state's particular definitions of agency, so you'll know where you stand.

In exchange for your commitment, how will the agent help you accomplish your goals? Show you homes that meet your requirements and provide you with a list of the properties he or she is showing you?

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12. How should I select a REALTOR® when selling my home?

Once you've decide to sell your home, finding a REALTOR® is the next step in the process. In making this important decision you should understand:

Who is a REALTOR®

How to evaluate an agent

What a REALTOR® will do for you

Selling on your own

If you’re not in a "must sell" situation (job transfer, career opportunity, family upheaval, financial hardship), but rather in an "elective" one, you may want to consider adding on to your current home (if you need more space) or refinancing to lower monthly mortgage costs (if finances are a concern).

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13. Who is a REALTOR®?

The terms agent, broker and REALTOR® are often used interchangeably, but have very different meanings. For example, not all agents (also called salespersons) or brokers are REALTORS®. Learn who is a REALTOR® and the reasons why you should use one. As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world's largest professional trade association. They can then call themselves REALTORS®. The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR® who belongs to an MLS will give you access to the greatest number of homes.

How to evaluate an agent

Without any obligation, you can invite local REALTORS® to visit your home and give you a "listing presentation" about why they're the best ones to market it for you. Two to three presentations will probably give you a good opportunity for choice. A listing presentation includes having the REALTOR® review with you the reasons why you should list with that particular individual, and providing you with information that will assist you in making initial decisions about selling your home.

Recent laws in every state have defined the duties of someone specifically retained as a real estate agent. Most states require a real estate agent to explain his or her role at the outset of any conversation. A professional agent will promptly provide this such a disclosure. Look for an agent who:

Is a member of the local board or association of REALTORS®

Explains and discloses agency relationships (the role of the agent, i.e., who they are representing--the buyer or the seller) early on in the process, at "serious first contact"

Advises you on how to prepare your home for the market

Shows some enthusiasm for your property, listens attentively, instills confidence, operates in a professional manner, and has a complementary personality style to yours

Has already researched your property in the public records and the MLS

Brings data on nearby homes that have sold (or failed to sell) recently

The following are important questions to ask a potential agent:

Are you a REALTOR®?

Do you have an active real estate license in good standing. To find this information, you can check with your state’s governing agency.

Do you belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service? Multiple Listing Services are cooperative information networks of REALTORS® that provide descriptions of most of the houses for sale in a particular region.

If there's no nearby MLS, how often do you cooperate with other local brokers on a sale?

What have you listed or sold in this neighborhood lately?

Do you cooperate with buyers' brokers?

What share of the commission will you offer a cooperating broker who finds the buyer?

And in addition to the criteria mentioned above, there are number of very important reasons you will typically prefer to work with a REALTOR®. Among them are the fact that they adhere to the NAR’s highest standards of ethical conduct and professional training.

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14. What will a REALTOR® do for you?

There are many important reasons to use a REALTOR®. Some of the duties your REALTOR® will perform for you include:

Walking through the process of selling your home from beginning to end

Providing comparable information about the prices for which other properties have sold and analyzing data for you to gain a true comparison

Supplying information regarding local customs and regulations you may want to consider

Sharing information about your home through the Multiple Listing Service and on the Internet

Placing advertisements for your home

Fielding phone calls

"Qualifying" potential buyers to make sure they would be financially able to buy your property

Negotiating the sales contract

Alerting you to potential risks

Complying with the disclosures required by law

Providing you with an estimate of the closing costs you will incur

Helping you prepare for a smooth closing of the transaction.

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