The proliferation of information on the Internet and growth of real estate websites have made it easier for the typical home buyer to search for the ideal home. Studies show nearly 90 percent of prospective home buyers begin their home search on the web. In fact, most buyers search for a property on their own for six months before they contact a real estate agent.
Buying a home takes more than gathering facts and figures, according to David Tonna, president of the Silicon Valley Association of Realtors. With much information also comes misinformation. This is why it is essential that Realtors educate future buyers about the marketplace before even showing the first property, says Tonna.
"Homeownership is an investment in your future and offers immediate benefits and long-term value. Realtors are trusted resources for the most up-to-date, comprehensive and accurate real estate information because they know the communities, see many homes, and can help buyers successfully navigate the increasingly complex buying process," says Tonna.
A broker associate with Alain Pinel Realtors in Los Gatos, Tonna says location is of primary importance to the typical home buyer. "My clients work long hours, so they want to live close to work and family. They see a house they like, but they are from out of town and are not aware of the commute time in the Bay Area. A 45-minute drive to work can make a difference to them," explains Tonna.
Tonna says he spends no less than 90 minutes with a future buyer upon their first meeting. The meeting begins by having the buyers describe their ideal home, lifestyle, school needs, commute desires, community amenities. He then presents the buyers with a neatly bound manual that outlines the buying process, including the complexity of their home search, offer(s), escrow, contingencies and closing. Then they go over forms the buyers will encounter.
"This process takes the mystery out of home purchasing. We go through each paragraph of each page of the purchase agreement, sample disclosures, advisories, contingency removals, and walk through, so when the buyers make their offer, the forms will not be foreign to them, asking them to initial the disclosure will not come as a surprise, making the offer process proceed smoothly," says Tonna.
Educating today's buyer is more important now than ever because many buyers in the Bay Area are coming from out of state and other countries, where real estate is practiced very differently. "My last buyer, who came from the East Coast, was amazed that we do not employ attorneys to write the offer and perform the title search," relates Tonna.
He adds that many international buyers come from countries that do not have a multiple listing service (MLS). These buyers are accustomed to walking into a real estate office and asking for a list of their inventory, because agents don't share this data in their home country.
Tonna debunks the notion that real estate websites can replace the Realtor. "The process I describe illustrates that Realtors are not simply order takers for properties they found on the Internet and visited at an open house. It raises the level of our professionalism in our industry," says Tonna.
Tonna also reminds buyers about the difference between a real estate agent and a Realtor. He notes, "While both are licensed to sell real estate and bound by certain legal obligations, Realtors are members of the National Association of Realtors and held to an even higher standard of conduct than other real estate professionals because we must abide by a code of ethics, which is diligently enforced by our peers."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.