Frequently Asked Questions - The Chapel Hill Board of REALTORS

What is the difference between a REALTOR and a real estate agent?
"Real estate agent" is a general term that refers to a variety of real estate professionals, including salespeople, property management professionals, appraisers, and counselors . In North Carolina, real estate license laws require that any of these real estate professionals hold a real estate license. The term "REALTOR®" refers exclusively to real estate professionals who are members of the National Association of REALTORS® (NAR), the largest real estate trade organization in the United States. Why is this small distinction important? All REALTORS® must adhere to a strict code of ethics designed to protect the interests of consumers and to elevate the standards of the industry. While all real estate professionals must adhere to applicable laws, REALTORS® voluntarily agree to hold themselves to a higher standard.

Why use a REALTOR?
Based on an article from RealTimes, the online news service of the National Association of Realtors, here are answers to the question: What can a real estate agent bring to the sale of your home?

1. Increased appeal in the marketplace. Home sellers don't fully realize that clearly seeing a home through the eyes of a buyer dramatically increases the chances of the home selling quickly and at a higher price. Only a real estate agent's experience can guide a seller to properly show a home to its best advantage.
2. The right listing price. A real estate agent knows the marketplace and your neighborhood and is fully qualified to prepare a detailed market analysis. Plus, a broker knows the competition and what to expect from buyers.
3. The Multiple Listing Service. Your home is listed for all real estate agents to see?and sell! Now the MLS is part of an international database, so your buyer could come from anywhere in the world. A real estate agent is prepared.
4. A referral network. A real estate agent is in constant touch with a wide array of professionals and consumers?all of whom might send the right buyer to your door.
5. A professional yard sign. A sign can funnel buyers' calls right to the qualified real estate professional with the answers they need.
6. A flexible flyer. A flyer about your home can be distributed many different ways, to potential buyers as well as other brokers.
7. Financing expertise. There are many ways in which to financea home today, and a broker is prepared to discuss the options most advantageous for you, the seller.
8. Tours. Your broker can arrange tours of your home for top producing sales agents who would benefit from seeing your home first-hand.
9. Open houses?arranged by your broker for the public and other real estate professionals.
10. A direct mailer. This can be launched with "Just Listed" cards to your neighbors and nearby move-up and rental neighborhoods.
11. Classified ads. Ads might also be taken out for your home. Writing and placing these is an art in itself.
12. Ongoing information. Your broker will tell you about marketing conditions and the competition on a regular basis. This can keep you up-to-date with the market so you are prepared to make decisions.
13. Finding "quality" buyers. Your broker can help buyers find the best financing alternatives and quickly pre-qualify and pre-approve them for mortgages, giving sellers a high degree of security toward closing.
14. Sales skills. A real estate agent who knows his/her business and the local area is invaluable in taking action to show the buyer the neighborhood, competing properties, the special features of your home, the facts about the school system, shopping, etc.
15. Negotiation skills. Your real estate agent will negotiate the purchase agreement and, in doing so, represent your best interests. There may be situations in which dual agency applies.
16. Multiple offer expertise. If more than one buyer makes an offer on your home, it takes an immense amount of know-how and integrity to handle the deal properly.
17. Organization of closing details. From following up with the buyer's mortgage application, to ordering appraisals and inspections, to reviewing the settlement figures for accuracy....your real estate agent does it all.
18. Availability. Throughout the transaction, your broker was your partner. Last-minute contingencies concerning the contract or anything else not complete before closing, can smoothly be managed by your broker.
19. Closure. Your broker will be at your side at the closing table,
prepared for any eventuality and ready to shake your hand with congratulations.
20. Loyalty. Your broker won't forget you or your needs, and will be ready to again be of service to you or anyone you know.

What is the MLS?
MLS stands for Multiple Listing Service. The majority of all agencies in this area are all members of the Triangle area (Raleigh, Durham, and Chapel Hill) MLS. Whenever an member agent lists (offers for sale) a house, they are required to put information about that house into the MLS. This allows all other MLS member agents to view and show that property. Working together in this way allows sellers to show their homes to many more interested sellers and allows buyers access to many more available homes. REALTOR.COM is a popular search tool that I often suggest to clients. Through REALTOR.COM you are able to search almost any MLS listing in any state. This is a great way to find out more about possible areas and the price ranges of homes that interest you.

What is the difference between a Buyer's Agent and a Seller's Agent?
The North Carolina Real Estate Commission requires all real estate professionals, when working in the sale or purchase of a home, to disclose 'agency'. In layman's terms, this means that the real estate professional you are working with must tell you whether he or she is working on behalf of the buyer or on behalf of the seller.

Look at this scenario: Buyer A is driving down Any Street, NC and sees a wonderful two story home, with a wrap around porch-the house of her dreams. To get more information she calls the number of the agent on the real estate company sign. Agent1 answers the phone and tells Buyer A the price and other basic information about the home. Liking what she hears, Buyer A tell Agent1 that the home is in her price range and that she wants to buy the house ASAP even if it means she has to pay more.

What Buyer A didn't realize is that the person listed on the real estate company's sign in front of the house was actually a SELLER'S AGENT or the agent who's job is to help the seller sell their home as quickly and at the best price possible. In fact, it is Agent1's duty to tell their client, the SELLER everything that Buyer A said about wanting to move in quickly. Clearly, this puts Buyer A at a distinct disadvantage when she puts in an offer for the home.

What Buyer A needs is an agent of her own, or an agent whose sole job is to protect Buyer A and make sure she gets her dream house at the best price possible. In North Carolina, a portion of the commission the seller pays to their agent is set aside to pay for the Buyer (in this example, Buyer A) to have such an agent, otherwise known as the BUYER'S AGENT.

North Carolina law does allow for one agent to act on behalf of both the Buyer and the Seller, called a DUAL AGENT. But most people prefer to know that there is an agent looking out specifically for their best interests.

The North Carolina Real Estate Commission produces a brocure entitled: "Working with Real Estate Agents". This details agency in North Carolina, specifically the differences between Buyer's and Seller's Agents.

How do I choose a REALTOR?
There many wonderful REALTORS® available to assist you in the sale or purchase of your home, so locating a REALTOR® is not difficult. But how do you find the right REALTOR® for you?

Word of mouth or personal referrals are an excellent start to finding a great match. Try asking a friend or a co-worker for REALTOR® they would suggest.

Also, the internet is an excellent way to search and find out information about a REALTOR®. In today's market internet services and tools are an important part of any buyer's search or seller's sale of a home. Surfing the web is a great way to find a REALTOR® whose internet services will enhance your real estate transaction.

The best way to find a great REALTOR® is to actually sit down and meet with the REALTOR® one on one. This is the only way to see if you how comfortable you feel with the person you are trusting to guide you through what can be one of the biggest decisions of your life. Knowing that you can communicate openly and honestly with your REALTOR® helps ensure that your experience will go as smoothly as possible.

What's the difference between a condo and a townhome?
A person who owns a condo owns the inside of their unit. A person who owns a townhome owns the complete unit, including exterior surfaces and the land on which the unit sits.

Another way to think of this is to say that someone who owns a condo owns "the paint, but not the walls". So the walls and the structure of which the condo is made is not actually owned by the unit owner.

In a townhome, a unit owner owns everything, but shares some aspects of the sturcture such as shared walls and the roof or crawlspace.

Any common areas, such as pools, sidewalks, parking lots, etc. are managed by the development's HOA or Home Owners Association.

What are HOA dues? What does HOA mean?
HOA stands for HOME OWNERS ASSOCIATION. If you are purchasing or are living in a home with an HOA, more than likely you will be required to pay HOA dues.

HOA dues are funds collected by the Home Owners Association to help pay for different community costs that should be shared by community members.

For those living in a condo or townhome HOA dues pay for the management of 'common areas', like parking lots or sidewalks. Also, condo and townhome HOA dues will cover common areas insurance premiums and property taxes.

For those living in a detached home in a neighborhood with a Home Owners Association, any HOA dues are determined on the functions the HOA. For example, if a HOA only manages a large sign at an entrance to a neighborhood, the HOA should be relatively low. However, if your HOA manages a neighborhood pool or playground, you can expect to pay a bit more.

What is Earnest Money?
Earnest money is money given to the Seller from the Buyer to show the Buyer's good faith when making an offer to purchase the seller's property. Usually this money is held in by the Seller's agent in an escrow account.

The amount of escrow is agreed upon by the Buyer and the Seller. At closing, earnest money is usually applied towards the purchase price of the home or simply given back to the Buyer.

If your real estate agent is using the 'Standard Offer to Purchase and Contract' form provided by the NC Real Estate Commisions, the 'rules' regarding the earnest money are clearly stated. Ask your agent to go over with you in depth the circumstances of which earnest money is held. Or you can read the NC Real Estate Commission's brochure "Questions and Answers on Earnest Money Deposits" for more information.

How do I make an offer after I find the right property?
When you have found the property you would like to purchase, you should sit down with your REALTOR® to discuss how much you would like to offer to the seller. Once you decide on a price and/or specials terms for purchase, your REALTOR® will help you fill out the "Standard Offer to Purchase and Contract" form that has been approved by both the North Carolina Real Estate Commission as well as the North Carolina Bar Association.

The Standard Offer to Purchase and Contract was designed to protect both the Buyer and the Seller, making sure that provisions for many to the common 'problems' that can occur during a real estate transaction have been adressed.

Do I need a lawyer if I have a REALTOR?
Your REALTOR'S® job is to help guide you through the home buying and/or selling process.

Your lawyer's job is to protect your legal intrests in the property you would like to purchase. This can include items such as making sure there are no liens on the propery, creating deeds, and recording your new ownership in the proper government offices.

Like your REALTOR®, you want to choose a lawyer whom you can trust and communicate openly.

What is the difference between an appraisal and a home inspection?
An appraisal is when a licensed appraiser reviews a house in order to provide the buyer an unbiased opinion on the "worth" of the house. The appraiser gives a dollar amount that he or she feels the house should sell for, in that particular market.

A home inspection is when a licensed home inspector inspects a home, looking for any problems and gathering information about the quality of the house and all of its systems. Inspectors usually give a report to share all of his or her findings. This report is then used by the buyer to see if they would like the seller to make an repairs.

The costs of both the appraisal and the home inspection is charged to the buyer, as the information that both give are generally for the buyer's knowledge. A buyer can not arrange for an appraisal or home inspection until they are under contract with the seller.

"To be the leading resource and advocate for our real estate community, real property rights and ethical conduct.”

Greater Chapel Hill Association of REALTORS®
1709 Legion Road, Suite 117
Chapel Hill, NC 27517-2373
Phone: 919-929-4032
Fax: 919-929-1409
Email: theboard@chapelhillrealtors.com

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