Using a Realtor for their “Market Knowledge”

The home buying experience can be a complex process, which will often require you to solicit the help of market experts.  Most realtors are considered to be market experts and should be able to prove their value to you as you begin your journey through the real estate transaction process.  Your journey normally begins by navigate through the vast amounts of information provided to you about the homes and the amenities offered in a specific market.  There are a number of different resources you can use to generate information about the market, however not all the information generated for you will prove to be beneficial.   This is why a Realtor can be a great resource to you.  They will have an in- depth understanding of the forces currently driving the real estate market you are searching in, and the will have access to data about that market, which will guide you in making good buying decisions. 

Having accurate information about an area is crucial when attempting to negotiate the best possible terms on your future home.  Obviously, when you work with a realtor they will be responsible for generate this information for you.  Realtors will utilize a variety of tools to ensure that the information they provide is as accurate as possible.  For example, they will be able to give you up to date information on; average home prices, current sales activities, and increased home value projections, all of which will be helpful to you in the negotiation process.  Increasing your market knowledge will increase your ability to make good decisions throughout your real estate transaction.    

Real estate decisions should not only be about the raw structures themselves.  You should also consider what types of amenities are being offered in the market you are currently searching in.  For example, you and your realtor should research any relevant information related to schools, recreational activities, local employers, and entertainment options.  Knowing what types of amenities are being offered in an area, and how important those amenities are to you, should play a pivotal role when making your final home buying decision.  A good realtor will have an ability to make you aware of these considerations and any other considerations that you may have overlooked, before it is too late.            

One of the most important ingredients needed when looking for a home to buy, is knowing what homes are up for sale.  Having this form of “Market Knowledge” is the single most important component in the real estate transaction process.  For this reason real estate markets have developed a system that allows a prospective seller to list their property for sale on a universally used database.  This data base can be used by you or anyone else attempting to buy a home to help them identify the homes up for sale that meet their current search criteria.    Obviously if you are unaware of what homes are up for sale, then buying a home becomes a very difficult task.  We refer to this tool as the MLS, which stands for Multiple Listing Service.

The MLS is a database used to display homes currently on the market for sale. The real estate commission board has mandated that only licensed real estate agents can have access to the MLS, which gives us another good reason to have a realtor working for you.  Realtors will be there to help you navigate through the vast amounts of information found on the MLS.  By using this database you and your realtor will be able to compile a list of homes that will best satisfy your needs.  Once you have made the decision that these are the homes you want to see, you should ask your realtor to print out any data sheets that might be available for these homes.  These printed data sheets will give you a comprehensive description of any and all features found on a specific home, before you actually go out to view the home in person.  As you can see, the MLS is a powerful tool and anyone looking to increase their market knowledge will need to have access to the MLS. 

You will always hear that two heads are better then one, and as you begin to walk down that path to home ownership, you should try to incorporate as many people into the mix as you can.  People will share their experiences and their knowledge about a certain situation and the more you know about real estate the better you will be in negotiating the best possible terms for you and your family.  This is why we encourage our clients to use a realtor.  Realtor’s should possess the market knowledge you need to help guide you in the right direction.  Ultimately, you will know what is right for you and your family.  If you follow your instincts, relying on what you already know, you should come out of this process just fine.