There are a lot of misconceptions among buyers regarding the real estate purchase process. Hopefully this information can clear a few of these up.
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Are all real estate agents REALTORS®? |
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No. REALTOR® refers to an agent that is a member of the National Association of REALTORS® and has agreed to abide by their code of ethics that protects their customers, clients, as well as the public and gives the consumer someone to turn to when they feel the REALTOR® has not acted properly. In addition, REALTORS® pledge that they will uphold, and abide by, Fair Housing Laws.
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Are all the available properties for sale advertised in the Multiple Listing Service (MLS) |
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No. Some properties such as "For Sale By Owner" (FSBO) properties, estates, and foreclosures are not listed in the Multiple Listing Service However, an experienced agent will have knowledge of, and access to, many of these "non-MLS" properties. |
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Does the agent showing the buyer property represent the buyer or seller? |
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The answer is "It depends". For you to be trully (and legally) represented, you and your agent must enter into an agreement establishing your agent as your "Buyer's Agent". Missouri state law requires that the buyers agency agreement be in writing. If you have not entered into such an agreement, then again under Missouri law, the default relationship between you and the agent will be that of a transaction agent which means they can assist you not advise or represent you. The other option is when an agent, representing the Seller (such as the listing agent) shows you the property absent an agreement to the contrary they are representing the seller and you are not represented. In this situation you must be careful what information you relay to the agent (such as the price you are willing to go up to) because their obligation is to convey this to the seller. |
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Can I get a better deal buying directly from the seller or builder? |
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Maybe. Maybe not. Often a buyer ends up paying more for the property because of a lack of knowledge of market conditions, area prices, or ineffective negotiations. There are many factors that go into whether a buyer gets a good deal or not. Price is just one of them. Terms of the contract, repairs that need to be made, and other factors affect this. A good buyers agent is able to represent your best interests. |
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Are foreclosures always good deals? |
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Absolutely not. Foreclosures are just like every other real estate trasaction in that there are many factors to take into consideration when deciding whether the deal is "good" or not. They must be bought at a price that considers the overall market, the condition of the property, remembering that, unlike a normal sale where you are usually provided a written seller's disclosure as to condition of the house from the party that has usually occupied the house, you won't usually receive a seller's disclosure alerting you to potential problems.. Often foreclosures were overpriced to begin with and the seller was unable to sell the property at a price to cover the mortgage. Unfortunately some buyers have purchased foreclosures without doing their homework and have found they paid too much. |
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Will homebuilders work with agents? |
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Yes. In the past, there have been occasions where home-builders would not work with real estate agents, or more accurately, wouldn't agree to pay a commission to an oustide company to sell their new homes. Well, today that is not the case at all. Builders need to get their homes sold and are more than accomodating to real estate agents. |
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Can agents from one company show another companies listings? |
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Absolutely, it happens every day! In St. Louis REALTORS® are members of the local MLS giving them access to all property listing in the MLS by all the other REALTORS®. |
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Can agents show "for sale by owner" and other unlisted property? |
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Absolutely. Your buyer's agent can show you FSBO property and other unlisted property. Most for sale by owners appreciate working with buyer's agent who have qualified buyers for their property. The buyer's agent must only receive written authorization from the owners of the property before showing the home. |
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