Today, Namir George from the Michigan Institute of Real Estate joins me to discuss
how much Realtors go through to become professionals and why consumers should value their efforts.
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Real estate agents have to undergo a lot of education to become proficient in their field, and many consumers don’t fully understand what it takes for an agent to get to the point of being a licensed professional. Today Namir George from the Michigan Institute of Real Estate is here to shed some insight into what exactly agents go through to become real estate agents.
The real estate industry is regulated by the state of Michigan, and as part of their regulations, they have a straightforward set of rules that a Realtor has to abide by. They have to attend classes and ongoing courses in order to know the latest developments within the industry.
To consumers who are trying to buy or sell real estate, it sounds easy, but determining the price of a home and putting it on the market is only 40% or 50% of the work that’s involved with putting a transaction together. If the Realtor is going to represent a seller legally, they’re obligated to put clauses and contingencies into your contract that will serve the seller. When a buyer’s agent represents a client, they have to structure the transaction to serve the best interests of the client.
On top of the state’s rules, Realtors also have to abide by the Code of Ethics, which is even tougher than the state. If you act unethically as a Realtor, you’ll have to pay a fine to the Association of Realtors. Just today, George spent hours in class going through legal issues that could have been avoided had the parties involved had full disclosure and communicated effectively.
“
Determining the price of a home and putting it on the market
is only 40% or 50% of the work that’s involved
with putting a transaction together.
”
We run into so many issues during transactions. For example, For Sale By Owner (FSBO) sellers who don’t even know what a seller’s disclosure is or provide one to the buyer before they sign the purchase agreement. The buyer then would have to withdraw from the transaction and the seller has to refund their deposit.
That’s why it’s so important that consumers take advantage of the services we provide. According to a survey from the National Association of Realtors, when a FSBO sells a property, they get 10% to 12% less than the market value of their home. They might think they got a good price for it, but they didn’t. A Realtor usually charges you less than that, they’ll get you the full price of your home, and even with the commission fee, you’re still ahead of the game. They do all the work for you.
George is always contributing to the industry and is a valued member of my community. If you have any questions for him, visit his website here.
If you know someone who wants to buy, sell, invest, or work in real estate, give us a call. We can help you align with the right real estate agent anywhere in the world.