Can a real estate agent really help me in buying and selling?

Do you have the time, energy, sources of information, and contacts to do the job yourself? If you were one of the 'do-it-yourself' people, would the results be as good or better than they would be if you had professional assistance? Would it have gone smoother? Would it have given you more personal time? Would you have purchased for less, or sold for more, if a real estate agent was involved?

Read the following information and learn how a real estate agent can help you understand everything you need to know about a real estate transaction.

The Buying Process

Finding
Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your needs. This is the time to choose a real estate licensee. When picking a real estate agent look for one who is also a REALTOR®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS®, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics. A REALTOR® has many resources to assist you in that 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.

Selecting
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent 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?

Negotiating
There are a myriad of 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 also 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.

Due Diligence
With a negotiated agreement in hand, it is time to complete 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 agent 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 agent, title company or attorney can help you resolve issues that might cause problems at a later date.

Financing
As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding different financing options and in identifying qualified lenders.

Closing or Settlement
Finally, there is the closing, or settlement, as it is known in different parts of the country. Every area has its own unique customs. In some areas, the title or escrow company will handle this process. In other parts of the country, an attorney does it all. Again, your real estate agent can guide you through this process and make sure everything flows together smoothly.

Selling Real Estate

Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of 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 agent 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.

Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in some areas, newspaper advertising generates phone calls to the real estate office but statistically has minimum effectiveness in selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller is desperate. Your real estate agent 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 and family, and personal contacts.

Security
When the property is marketed with the agent help, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating
The negotiation process deals with much the same issues for both buyers and sellers, as noted above under the buying process. Your agent 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 agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, Renegotiating and Closing
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 agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

How Do Real Estate Agents Get Paid?

Why A REALTOR®?

Using a REALTOR®

It is important that your Realtor direct you to the best mortgage lender -- one who can assess your special needs and fit the best program to those needs.

Mortgage loan programs differ in their interest rates, length of term, amount of money required for a down payment, "ratio" percentages allowed for qualification and miscellaneous loan charges and closing costs. Since each buyer is unique, the mortgage loan must be a "perfect fit."

John Lotito and Associates work with Jerome Niedorf at Republic Mortgage here in Las Vegas. Jerome is the Vice President and Branch Manager at Republic Mortgage, and has been involved in the mortgage and finance business for 25 years. Jerome is the past President of the Nevada Mortgage Bankers Association and has been John Lotito and Associates preferred lender for the past eight years. Jerome and his staff have the expertise and knowledge of the lending business needed to bring the best loan product and service to our buyers.

Jerome and his staff specialize in various types of loan programs, including:

• FHA LOANS
• VA (NO MONEY DOWN) LOANS
• CONVENTIONAL LOANS
• FIRST TIME HOMEBUYERS PROGRAMS
• NO ASSET/NO INCOME VERIFICATION LOANS
• LOW DOCUMENTATION LOANS
• SELF-EMPLOYED SPECIAL PROGRAMS
• SECOND HOME LOANS
• LAND/CONSTRUCTION LOANS
• "LESS THAN PERFECT CREDIT" LOANS

There are many buyers with special needs -- who have faced divorce, bankruptcy, credit challenges and other special situations -- and Jerome has been able to provide mortgages for these clients.

It is a good idea to talk with a mortgage broker prior to selecting your "dream" property. Republic Mortgage can provide you with a PRE-APPROVAL in advance of your looking at property, making your negotiating position more favorable, and allowing you to find your home knowing that your financing will be in place and completed within the necessary period of time. By completing the preliminary loan work in advance, John Lotito can know exactly which price range to show you when you look at property and can negotiate better on your behalf with the owner of property, as you are an approved buyer who is ready to close escrow on your transaction without any obstacles. Jerome can explain various options to buyers, such as "gift" funds, VA "$1 down" loans, co-borrower programs, mortgage insurance requirements, etc.

Republic Mortgage can offer you a variety of mortgage options, including:

• FIXED RATE
• ADJUSTABLE RATE
• FIXED RATE WITH A BALLOON
• 30 YEAR LOAN
• 15 YEAR LOAN

VA LOANS
These loans are designed to help Veterans (Active Duty or Reservist) with purchases up to $203,000. The main benefit is that the Veteran can, in many cases, purchase this property with no money down.

Rates and terms are changing daily. Call Jerome for current rates and terms!

The VA Funding Fee, which is the cost of obtaining this type of loan, is : 2% for loans with 5% or lower down payment; 1.5% for loans with 5% - 10% down payment; 1.25% for loans with 10% or more down payment; .50% for rate reduction refinance loans (all for first time VA loan users): The VA Funding Fee for Veterans who have previously used their VA entitlement; call us for those fees. For Reservists the Funding Fee is .75% higher than that of the fees noted above.
A Veteran with a service connected disability who is monetarily compensated for the disability will not have to pay a VA Funding Fee.

FHA Loans
FHA loans are offered for buyers with smaller amounts of available cash for a down payment -- who might have income that is less than that required for a conventional loan to qualify for a purchase. The buyer can finance some of his closing costs, and all of the down payment can be obtained by a gift from a relative. Non-occupant co-borrowers are acceptable. Call Jerome for more information about maximum loan amounts and current rates and costs.

Conventional Loans
Conventional loans are offered with minimum of 3-5% down and vary greatly with regard to interest rate and length of term.

The key to a successful real estate purchase is being able to find the special mortgage loan program that fits your needs. Jerome Niedorf and Republic Mortgage can tailor a loan program for you. And SERVICE is their business! The team will work with you regardless of where you are currently located, regardless of what price range you are working with. And they will process and complete the financing of your new property FAST and EASILY!

For more information, feel free to conatact Jerome Niedorf at Republic Mortgage directly at:

• 702 952-5000
• 702 952-5001 fax