Many business owners are working so hard at their business that they fail to enjoy the rewards of being the business owner. If you are letting the life of your business overrule the business of living your life, then it is time to begin turning the tides.Finding ways to make your business work harder for you and your family is the reason we all started our businesses in the first place. If your business is obstructing your efforts to enjoy life with friends and family, this is a problem. We all know a lot of work goes into building a successful business, but if it is consuming all your time, effort and energy… is it worth it?Why this coordination is important:Every time you find new ways to help your family benefit from the efforts of your business, your life balance and family life improves.If your business consumes your entire life and your family life suffers because of it, your spouse and children may actually resent the time that you spend there. Even if it provides a great deal of income, the value of family and social life may be sacrificed.Make your business help you, your family and your social life. You will be happier, healthier and live a longer more rewarding life.5 Ways To Consider:Consider paying children’s education expenses as wages for workMany small business owners make a good living and have higher than average incomes. This can cause their family to qualify for little to no college financial aid when their children are ready to attend college.If you are going to have to pay for it anyway, why not pay your children to help out at your small business. Pay them as an employee, contractor or consultant to do work for you and your business.If you pay them enough to cover their college costs, you will receive a tax deduction for the cost of their college education by deducting their income from your business. They will be responsible for helping out with your business and they may surprise you with how much value they add to the business. New ideas, new technology, a new and different viewpoint might be just what your business needs.Schedule family vacations around business travelWhen a family vacation is something you’re considering, think about coordinating it around a work trip. Do you need to go to conventions, trade shows, seminars or other training for work? If you drive to go to those business activities, your gas mileage is tax-deductible regardless of how many individuals you have in the car with you. Does this conference or training trip require you to stay in a hotel? Your hotel expenses for that night can also be deductible regardless of whether you have your family with you in the room.Scheduling family vacations around business travel can help make it more manageable. This allows you to enjoy time with your family or friends while also working on your business. Consult with your spouse or family to coordinate the two.Manage taxable income and year-end purchases to lower tax bracketOperating and owning a business requires seeing the big picture and planning for the future. Your business will likely need new or updated equipment, computers, other technologies etc. to operate smoothly and efficiently. Be able to forecast these needs.Here is where you coordinate your tax situation with these needs. If you know you are in need of new equipment, computers, etc. in the near future, look at your taxes. If you are looking at a higher tax bracket for the year you may want to make these necessary equipment purchases sooner than expected. Or you may want to wait until next year. This requires consulting with your business advisor to determine the best option.Use Retirement PlansConsider reducing your current income by using a Retirement Plan. Not only will this help you once again for tax purposes, but it’s also helping you and your families future. So many small business owners neglect to put retirement needs on their priority list. Often we hear “my business is my retirement plan.” Putting all of your eggs into one basket can be extremely risky and even dangerous for your future.You may want to consider adjusting your salary in order to account for contributing to a retirement plan. There are many ways to rearrange things to make it possible to contribute. The tax savings alone can help justify the redirecting of your income into a retirement plan. Be sure to look at all of the different options and scenarios as this will provide further clarity.Also if you choose to offer your employees a retirement plan, this will help attract quality employees, retain them and allow for an additional tax savings for any company match. You may even be able to take a few days off without worrying about the business functioning without you! Think of how that would allow you more family time. Consult with your financial advisor to clarify your options and the benefits to you, your business and your family.Consider adding or using a home office arrangementThere are many benefits of utilizing a home office arrangement for you, your business and especially your family. If you’re currently renting or paying for office space it may be feasible to create or use an office space at home. With technology today, working out of the house has become much more functional.If you’re solely stationed out of your home, this provides for another tax benefit. You are able to write off the portion of your mortgage that accounts for the square footage of your home office. Also any improvement expenses, internet expenses, utility expenses or taxes that are directly related to your home office may also be deductions. Finding ways to cut taxes is crucial for a small business owner.If your line of work makes it unable to be based completely out of your house, even just working a day or two from home will allow you to spend more time around your family and add some flexibility to your work schedule.Your Challenge:Here are 5 ways to help your business work hard for you and your family. Share your ideas with your spouse, children and business advisers. In every case that we have executed these strategies properly, the rewards were three-fold. Family life improved, your work-life balance improved, and the business also benefited.You’ve worked too hard to get your business to where it’s at… It’s time your business returned the favor!

OBJECTIVES OF WRITING THIS ARTICLE: Forensic accounting(F.A.) has come into limelight due to rapid increase in financial frauds and white-collar crimes. But it is largely untrodden area in India.The integration of accounting, auditing and investigative skills creates the speciality know as F.A.The opportunities for the Forensic Accountants are growing fast;they are being engaged in public practice and are being employed by insurance companies, banks, police forces, government agencies etc.This article seeks to examine the meaning and nature, activities and services rendered, core knowledge and personal skills required for forensic accounting as a specialized field in accountancy profession. Indeed there is a future in F.A. as a separate niche consulting.The lack of respect and belief in India’s law enforcement agencies and the rate at which white-collar crimes have increased has prompted the development of Forensic Accounting in India. The fraud detecting agencies seems to lack time and devotion needed for detecting and prevention of errors and fraud. According to a large global accounting firm, the market is sufficiently big enough to maintain an unit devoted entirely towards “forensic accounting”. Many large as well as small accounting firms as well as the tiny firms have inculcated or rather developed separate forensic accounting departments.We were of the belief that detection and prevention of frauds or white-collar crimes is part of conventional accounting function. It was thought that the frauds, both internal as well as external has be to detected by the auditors through their periodic audit. Now it is crystal clear that auditors can only check for the compliance of a company’s books to generally accepted accounting principles, auditing standards and company policies. Hence the need was felt to detect the frauds in companies that are suspected to be engaged in fraudulent transactions. This field of accounting is known as “forensic accounting”.The litmus test of investigation, first introduced by the ever great Sherlock-Homes(considered by many as the father of Forensic Accounting) is perhaps the first ever application of forensic accounting. Though, the contribution of the other few great historians to the field of forensic accounting cannot be overlooked. They used various tricks to investigate various crimes.F.A. is a specialized a area of accounting practice that describes engagements which result from actual or anticipated disputes or litigation. The word “forensic” means “suitable for use in court”. The forensic accountants have to keep in mind this statement while they have to work or chalk out their programme. The F.A. work is tailor made according to the situation and need. The gathering of information and evidences is done according to the need and situation. We can say, it is customized according to the situation. The forensic-accountants give expert evidence at the ultimate trial. All the modern medium-sized as well as the large-sized accounting firms have specialized forensic accounting departments. Within these firms there may be specialized forensic accounting departments. Within these groups their may be further sub-specializations. Various sub-specializations include insurance claims, personal injury claims, fraud detection, construction or royalty audits. Nearly 40 percent of the top 100 US accounting firms are expanding their forensic and fraud services, according to Accounting Today. Now if we consider this data as significant then we can say that the total contribution of forensic accounting to the total revenue of the C.A. firms would be highly significant in the years to come. Under rising instances of frauds and litigation and flourishing businesses these services are considered to be very significant as they are rendered at a very competitive price.The forensic accountants utilize the various information relating the business, utilizes financial reporting systems, various accounting and auditing standards and procedures, investigative techniques and litigation processes and procedure to perform their work. By acting as advisors to audit committees and assisting in investment analyst research, they are playing more “proactive” risk reduction roles.This is possible by designing and performing extended procedures as part of the statutory audit. The objectives of such an accounting include measurement of losses caused by an auditor due to his negligence, to look into the matter whether their has been any embezzlement of cash, the amount, necessity of criminal proceedings, computation of asset values in a divorced proceeding.The primary approach technique of forensic accounting is explanatory analysis(cause and effect)of the phenomena-including the discovery of deception(if any), and its effects -introduced into an accounting system field. The primary methodology employed by the forensic accountants is the verification of the objective. They are trained to deal with real world business and do have the sufficient expertise to look beyond(behind) the numbers. The scope of the forensic accountants are growing at a rapid pace. The increase in their work opportunities have been accelerated due to the fall of the Enron corporation and the collapse of the American Twin Towers.This has led to increase in the demand for American forensic accountants. So as far India is concerned, formation of Serious Fraud Investigation Office(SIFO) is a landmark creation so far as forensic accountants are concerned. Failure of regulators to track security scams, increasing cyber crimes, chain of cooperative banks bursting -all point to the ever increasing need for forensic accountants. Our understanding of the need for forensic accountants is immaterial here. In India due to the growing number of frauds the need for forensic accountants is ever increasing. The regulatory and administrative agencies will put pressure for greater demand of forensic practices. This has been initiated due to the changing nature of Indian and International accounting.Auditing and assurance standards also confirm this. A change in the curriculum can be initiated if the written exams and practical industrial training are boosted to show the “new knowledge base and skill-set” required by the professional accountants in the new era. It is therefore recommended that the “forensic accounting and auditing” be introduced as a paper in the various professional examinations conducted by the various accounting bodies in India. Unfortunately forensic accounting is largely an unexplored area as far as India is concerned. The chartered Accountants(CAs) deal with such cases in an irregular fashion. In the western counter-part(countries), the Lawyers, police, insurance companies, government and regulatory bodies, banks, courts and business communities are increasingly utilizing the services of the forensic accountants.The accountants and the auditors must have the skills and expertise to venture into the emerging field of forensic accounting.What Is Forensic Accounting? The growing needs of corporations has changed the definition of forensic accounting. As per Bologna and Indquist, “the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of rules of evidence.It is a new emerging field that encompasses financial expertise, fraud knowledge, and a sound knowledge and understanding of business reality and the working of the legal system.”It means that the forensic accounting should be skilled not only in financial accounting but also internal control systems, the legal matters, other institutional requirements, investigative blend of mind and interpersonal skills.According to AICPA: “Forensic accounting is the application of accounting principles, theories, and discipline to facts or hypotheses at issues in a legal dispute and encompasses every branch of accounting knowledge: ‘ Similarly, forensic accounting is defined by Horty as:
“The science that deals with the relation and application of finance, accounting, tax and auditing knowledge to analyze, investigate, inquire, test and examine matters in civil law, criminal law and jurisprudence in an attempt to obtain the truth from which to render an expert opinion.”
In simple words, forensic accounting includes the use of accounting, auditing as well as investigative skills to assist in legal matters.It comprises of two major components: litigation services, that recognizes the role of an accountant as an expert consultant and investigative services, that uses a forensic accountant, s skills and may require possible court-room testimony.
Investigation of theft and defalcation of corporate and individual assets are part of legal matters.They use their education as well as experience to discuss the facts, patterns of the theft or misappropriation.Business accounting systems are reviewed by the forensic accountants.They suggest ways and means to solve and improve the internal control and internal accounting system.This is adopted to prevent theft and fraud. Because of their expert knowledge and educational background and experience their(forensic accountants) work is elevated to a new height.Forensic accountants do not contest in cases.They act as fact finding devices, try trt to seek the real truth from the hidden facts.They conduct their work in an unbiased and objective manner.They need legal knowledge, expertise, training and experience to perform their work in an effective and real manner.Extensive knowledge in the field of commerce, legal, accounting as well an investigative blend of mind is needed to perform the work in a proper fashion.Expertise in litigation support and testimony in courts of law are also prerequisites of the forensic accountants.This is due to the fact that their work would many times be used in a court of law.The valuation of damages due to criminal and civil wrong-doings need to be done with perfection and for that reason knowledge of business valuation theory is the most essential.What exactly do the Forensic Accountants perform? Answer: They are trained to deal with real life business situations and are trained to look beyond the numbers.
Analysis, interpretation and summarization of complex financial and business related issues are prominent characteristics of this accounting/auditing profession. Familiarity with legal concepts and procedures is a must.Insurance companies, public practice, banks, police forces and government agencies are major employers of forensic accountants.
The various field of work encompassing the arena of a forensic accountant can be stated in points format as follows:1) Financial evidence investigation and analysis.
2) Development of computerized software to help in the analysis and presentation of financial evidence.
3) Sharing their findings in the form of reports, slide shows or exhibits and documents collected.
4) To support trial evidence they prepare visual slides, assist in legal proceedings, including testifying in courts as an expert witness.
If we want to say or rather point out the role performed by the forensic accountants in a nutshell, we can say as follows:Measurement or to quantify the impact of lost earnings. Such as construction delays, stolen trade secrets, insurance disputes, damage/loss estimates, malpractice claims, employee theft, loss of profit, financial solvency reports, disturbance damages, loss of goodwill, compensation losses suffered in expropriation determination, assessment of the potential business compensation costs and providing consultation on business defalcation minimization. Lease default damages, breach of contract, business interruptions, breaches of shareholders and partnership agreements, reconstruction of accounting records,
Investigation of misappropriation, assistance in establishing ownership and division of assets, commercial damages, professional negligence cases, partnership disputes, expert evidence, fair value or fair market value and personal injury damages are included in commercial damages. Tax advocacy, compliance and review of financial statements, tax reporting and tax planning in such areas as income as estate matters are included in tax matters. Analysis, interpretation, summarization, presentation of complex financial and issues relating to the business for investigation is the role of a forensic accountant.
They carry out investigative accounting and provide litigation support.The services rendered by the forensic accountants are in great demand in the following areas:1) Fraud detection where employees commit Fraud:
Where the employee indulges in fraudulent activities:
Where the employees are caught to have committed fraud the forensic accountant tries to locate any assets created by them out of the funds defalcated, then try interrogate them and try to find out the hidden truth.2)Criminal Investigation: Matters relating to financial implications the services of the forensic accountants are availed of. The report of the accountants are considered in preparing and presentation as evidence.3) Outgoing Partner’s settlement:
If the outgoing partner is not happy about his settlement he can employ a forensic accountant who will correctly assess his dues(assets) as well as his liabilities correctly.
4)Cases relating to professional negligence:
Professional negligence cases are taken up by the forensic accountants.
Non-conformation to Generally Accepted Accounting Standards(GAAS) or non compliance to auditing practices or ethical codes of any profession they are needed to measure the loss due to such professional negligence or shortage in services.5) Arbitration service: Forensic accountants render arbitration and mediation services for the business community, since they undergo special training in the area of alternative dispute resolution.6) Facilitating settlement regarding motor vehicle accident: As the forensic accountant is well acquainted with intricacies of laws relating to motor vehicles, and other relevant laws in force, his services become indispensable in measuring economic loss when a vehicle meets with an accident.7) Settlement of insurance claims: Insurance companies engage forensic accountants to have an accurate assessment of claims to be settled. Similarly, policyholders seek the help of a forensic accountant when they need to challenge the claim settlement as worked out by the insurance companies. A forensic accountant handles the claims relating to consequential loss policy, property loss due to various risks, fidelity insurance and other types of insurance claims.8) Dispute settlement: Business firms engage forensic accountants to handle contract disputes, construction claims, product liability claims, infringement of patent and trade marks cases, liability arising from breach of contracts and so on.9) Matrimonial dispute cases: Forensic accountants entertain cases pertaining to matrimonial disputes wherein their role is merely confined to tracing, locating and evaluating any form of asset involved.Core Knowledge Of Forensic Accountants:
A forensic accountant is expected to be a specialist in accounting and financial systems. Yet, as companies continue to grow in size and complexity, uncovering fraud requires a forensic accountant to become proficient in an ever- increasing number of professional skills and competencies. Here are some of the broad areas of useful expertise for a forensic accountant:” An in-depth knowledge of financial statements and the ability to critically analyse them. These skills help forensic accountants to uncover abnormal patterns in accounting information and recognise their source.
” A thorough understanding of fraud schemes, including but not limited to asset misappropriations, money laundering, bribery, and corruption.
” The ability to comprehend the internal control systems of corporations, and to set up a control system that assesses risks, achieves management objectives, informs employees of their control responsibilities, and monitors the quality of the programme so that corrections and changes can be made.
” Proficiency in computer and knowledge of network systems. These skills help forensic accountants to conduct investigations in the area of e-banking and computerised accounting systems.
” Knowledge of psychology in order to understand the impulses behind criminal behaviour and to set up fraud prevention programmes that motivate and encourage employees.
” Interpersonal and communication skills, which aid in disseminating information about the company’s ethical policies and help forensic accountants to conduct interviews and obtain crucially needed information.
” Thorough knowledge of company.s governance policies and the laws that regulate these policies.
” Command of criminal and civil law, as well as, of the legal system and court procedures.Personal Skills Required:
So what does it take to become a forensic accountant? In addition to the specialised knowledge about the techniques of finding out the frauds, one needs patience and an analytical mindset. One has to look beyond the numbers and grasp the substance of the situation. There is a need for the same basic accounting skills that it takes to become a good auditor plus the ability to pay attention to the smallest detail, analyse data thoroughly, think creatively, possess common business sense, be proficient with a computer, and have excellent communication skills. A “sixth”sense that can be used to reconstruct details of past accounting transactions is also beneficial. A photographic memory helps when trying to visualise and reconstruct these past events. The forensic accountant also needs the ability to maintain his composure when detailing these events on the witness stand. Finally, a forensic accountant should be insensitive to personal attacks on his professional credibility. A fraud accountant (as forensic accountants are sometimes called) should also observe and listen carefully. By this, you can improve your ability to detect lies whether they involve fraud or not. This is so because”not all liars are fraudsters, but all fraudsters are liars”(Wells).According to a forensic accounting expert, “the traits of a forensic accountant could be compared to a well-baked pizza. The base of forensic accounting is accounting knowledge. Size and the extent of baking decide the quality of the pizza. A middle layer is a dispersed knowledge of auditing, internal controls, risk assessment and fraud detection. It is like the spread of the cheese in pizza. The toppings of this pizza area basic understanding of the legal environment. The legal environment is essential in order to support the litigations. The cherry on the toppings of the pizza is a strong set of communication skills, both written and oral. It is just the beautification part. Perfect combination of the pizza base, cheese spread and good toppings makes the pizza delicious and the of company’s the laws that Forensic Auditor perfects. It is a combination that will be in demand for as long as human nature exists.”In addition to these personal characteristics, accountants must meet several additional requirements to become successful forensic accountants, say a Certification, acknowledging his competence. One can learn forensic accounting by obtaining a diploma given by Association of Certified Fraud Examiners (ACFE) in the US. Indian chapter of ACFE offers the course based on the white-collared crimes prevalent in US, based on their laws. However, there is no formal body that provides formal education of the frauds in India. Besides the formal certificate, one can deepen one’s knowledge and sharpen one’s skills in forensic accounting by undergoing training under an experienced forensic accountant, participating in various international conferences, reading relevant journals, books and other literature on forensic accounting.To combat the frauds effectively one needs the active support of government at every stage. There are three-four such agencies in India, which are dedicated to the mission of combating frauds. Serious Fraud Office looks into violations of Income Tax, FEMA, RBI Act, etc.; CBI (Economic Office Wing) deals with big financial frauds; Central Vigilance Commission deals with corruption. These are the major government agencies that combat frauds of different types. Unfortunately, there is no specialised education provided by any of the Universities in the country. Recently, TCS has also come out with software to combat money laundering and Subex Systems have designed software to combat the telecom frauds. Thus, combating the frauds with software has started picking up in India, with few big companies like ACL and IDEA, joining the race.The Need For Niche Consulting:
The CPA Vision Statement states: “The CPAs are trusted professionals who enable people and organisations to shape their future. Combining insight with integrity, CPAs deliver value by: (a) communicating the total picture with clarity and objectivity, (b) translating corn plex information into critical knowledge, (c) anticipating and creating opportunities, and (d) developing pathways that transform vision into reality1 It reflects the trend towards providing a broader range of assurance services. However, recent corporate accounting scandals and the resultant outcry for transparency and honesty in reporting have given rise to two disparate yet logical outcomes. First, forensic accounting skills have become crucial in untangling the complicated accounting manoeuvres that have obfuscated financial statements. Second, public demand for change and subsequent regulatory action has transformed corporate governance. Increasingly, company officers and directors are under ethical and legal scrutiny. Both trends have the common goal of responsibly addressing investors’ concerns about the financial reporting system. Indeed, there is a future in forensic accounting as a separate”niche” consulting area in India. The need to specialise, otherwise known as Niche Consulting, is imperative to practising accountants because the fast-paced developments in business thereby demand specialised knowledge and skills. While a majority of CAs have excellent analytical skills, they need to acknowledge that ‘forensic’ services require ‘specialised’ training as well as real-life ‘practical’ corporate experience. There is a need for specialised information, not just audit and tax service. What clients seem to want are people with unique sets of skills and experiences. With the maturing of the audit business, and the rapid development of technology that makes existing services low cost and cheap, it appears that it is the right time now to acquire those unique skills. To help practitioners move into ‘niche’ consulting, some professional organisations in the US have concluded that: “Future success for the profession depends, in part, on how the public perceives the ability of CPAs. New efforts in consulting, specialisation and understanding global business practices and strategies are considered crucial. We go out into the niche market, examining our strengths first. We go where the action is, only then we know we can adequately service our clients and make money doing it.” One area where ‘niche’ consulting is becoming the global trend is in “Forensic Accounting and Auditing’ But the major question facing the Indian accountancy profession is: Are we ready to plunge to where the challenging action is?Forensic Accounting In India:
It is in an infancy state in India.It is still an untrodden area in India.But due to ever increasing cases of bank & cyber-frauds its growing importance cannot be denied.
One immediate landmark creation is “Forensic Research Foundation”.They provide support for investigation of fraud.They publish one bi-monthly journal named as “White Crimes”.It relates to forensic and economic crimes. Another international organization named as KPNG has set up investigation detection centre in India.. Networks Limited, a Delhi based organization, working in the similar field, they are also trying to innovate ways and means to detect financial irregularities and crimes in India.Serious Investigation Fraud Offices(SIFO), has been established in India for the same reason, i.e. detection and prevention of economic irregularities and crimes. The need for such bodies and the importance of Forensic Accountants have been highlighted by L.N.Roy Committee.Lenin Parekh Committee has also expressed the view that one “fraud detection committee”need to be established. The main aim of such boards should be to prevent the interest of the stakeholders.Conclusion:
Forensic accounting in India has come to limelight only recently due to rapid increase in white-collar crimes and the belief that our law enforcement agencies do not have sufficient expertise or the time needed to uncover frauds. A large global accounting firm believes the market is sufficiently large to support an independent unit devoted strictly to ‘forensic’ accounting. All of the larger accounting firms, as well as, many medium-sized and boutique firms have recently created forensic accounting departments.Forensic accounting, in fact, integrates accounting, auditing, and investigative skills to conduct an examination into a company’s financial statements. Broad-based knowledge (within the themes listed above) is crucial to the success of entry-level forensic accountants. Because forensic accounting is relatively a new area of study, a series of working definitions and sharing of corporate experiences should be undertaken and encouraged to ensure a common understanding. Indeed, there is great future in forensic accounting as a separate”niche” consulting.While the forensic accounting and auditing practice had commenced in the US as early as ’1995, the seed of this specialisation has yet to take off in India. Forensic accountants are only dealing with financial implications of the cases entrusted to them and not engaging in auditing exercise. On account of global competition, the accounting profession must convince the marketplace that it has the “best-equipped” professionals to perform such services.Forensic accountants are also increasingly playing more ‘proactive’ risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisors to audit committees, and assisting in investment analyst research.While majority of CAs have excellent analytical skills, they need to acknowledge that ‘forensic’ services require ‘specialised’ training as well as real-life ‘practical’ corporate experience.
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References: -
1)Journal Of Forensic Accounting: Editor-In Chief: Crumbley D. Larry, Publisher: Inc.Edwards. R.T.
2)Journal Of The Chartered Accountant 2007, Pages: 1000-1010.Dr. Madan Bhasin, The Author is Head, Accounting Department, Mazoon College, Muscat, Sultanate Of Oman.
3)Referential Notes Of Prof. Dutta Kr. Uttam, Reader Deaprtment Of Commerce, Reader, University Of Burdwan.
4)Website access: http://www.wikipedia.com, accessed on 4th, February, 2008.

Allison was looking to buy a condo. She found one that she really wanted. The seller would provide owner financing. He said she could get the best deal if she did not use a real estate agent. Allison really wanted it and they signed a contract. She completed the down payment, and closed on the condo. Everything was going well. But about 2 years later she was notified of a lay off from her job. Allison immediately made the seller aware of the situation. Then was absolutely shocked when he said she could lose the condo to him once her payments reached 30 days behind. What Allison did not realize is that the contract she signed to purchase the condo was a land contract which does not transfer legal title to her until the full sale price amount is paid.Marc and June were looking for a bigger and saw one June really wanted. However they need to sell their current home first. They made a decision to not use a realtor. After 3 months their house was still up for sale with no offers. The totals of the cost from newspaper ads, and keeping the house up on a very popular home website was really starting to add up. Also adding to this, they were taking a hit in their pay every time one of them had to leave work, to show the home. Then the house June wanted was sold. That really discouraged her. She did not want to keep trying to sell, and would cut the lost. They took the house off everything. They may try to sell again later.Scenarios like these happen all the time each year in the U.S. These stories are the reason for this article. The objective of this information is to give an overview of the many advantages and benefits of using a real estate professional when buying, or selling a home.Right from the start… it would be dishonest if we did not say that lots of people do successfully buy a home, or sell their home without a real estate agent. However the statistics are pretty clear that the overwhelming majority are not successful. Added to this, feedback statistics indicate people really regret not being represented by a realtor.In the case of Allison… the bottom line is any brand new agent, just out of real estate school, would have immediately seen this was a land contract. There is nothing illegal about it, and it gives the buyer all of the rights of ownership except the most important one which is legal title. And a realtor would have quickly notice the extremely severe late payment penalty. Any agent would have cautioned Allison, of not begged Allison, to really think about whether or not this would be a good deal for her.In Marc and June’s case… They would not have spent a cent on advertising. They would not have needed to take time away from work. They would not have to deal with showing the home. And though no one can make absolute guarantees, they would have had a way better chance of quickly selling their home. They would have gotten that house June wanted.Selling, or buying, a house is an extremely big money investment. It is ranked as one of the biggest events in life. The experience, knowledge, and expertise of a real estate agent are a valuable asset.FOR HOME BUYERS: A significant reason why many avoid realtors is that most sales related jobs have negative stereotypes. From car salesmen, to insurance sales, to the lady behind the fragrance counter in a department store. Many sales men & women are thought of as rude, pushy, overbearing, untruthful, will pressure you, will say anything to get a commission, etc.But realtors are not just salespeople. They are independent agents, working for the home buyer, acting on their behalf as their representative providing assistance with the home purchase. Real estate agents do not sell the home. The home owner is the person selling it.Real estate agents are advocates, consultants, representatives, advisers, mediators, social workers, guidance counselors, credit repair specialist, or anything that a home buyer needs to accomplish their goal of owning a home. The real estate agent will literally take you by the hand, and lead you from beginning, to closing, if necessary.These are just a few of the benefits of using a real estate agent when buying a home:* MARKET KNOWLEDGE: Realtors will answer all questions about the current market, prices, interest rates and other home buying concerns. The agent can also refer you to other specialists who are necessary, including a home inspector or a lender* AVAILABLE HOMES: Agents use the Real Estate Information Network (REIN) also still known as the MLS. It is a database that contains every single house listed for sale. It is still the source for the most current and reliable information on listed homes. All the other popular home websites is either directly, or indirectly, receiving their data from this source. Internet searches, open houses, and newspaper ads just will not have all of the homes that are for sale.* FINANCING THE HOME: There has to be a plan on out how are you going to pay for the house! The realtor helps you determine what you can afford. A real estate agent can advise you on home loan programs, and sources for down payments you otherwise could not have known about. And educate on how to qualify for purchasing a home. Realtors can recommend home mortgage companies or banks, and work with loan companies on your behalf throughout the entire process.* VIEWING HOMES: Real estate professionals have the expertise to assist you in narrowing your home search. Seeking only on the homes that match your features, interest, and price range. This can be an invaluable time saver by eliminated homes that do not meet your criteria. The realtor is the source of important information about the home and the neighborhood itself: how long the home has been for sale, the school system, and the home’s best features and so on. Rather than going through properties of all types, your agent can help you focus on the homes that match what you are specifically looking for.* CONTRACTS & NEGOTIATIONS: You and the realtor have been working together and you found the home you want… now what? Your realtor will now help you in making a written offer of purchase. They will explain each paragraph in the offer to you. Nest they will present your offer to the seller, and negotiate as your advocate. They help you determine exactly what to offer, not only the amount but also in other important factors. Such as contingencies, various inspections, appliances, seller’s assistance with required closing costs, and other very important issues.* FINANLIZING THE SALE: After everyone agrees to the contract and it is accepted, there is still a lot of work to do. Your agent continues to help you through this process. The realtor makes sure the necessary steps are taken, such as finalizing the loan, appraisals, home inspections, moisture inspections, termite inspections, performing a title search, final walk through, deed preparation, closing, etcFOR HOME SELLERS: When it comes to home sellers the reasons why avoid realtors is fairly simple. They believe they will benefit from not having to pay the commission.However there is also the simple reality that every seller has a target, or a net amount, they want to reach on the sale of their home and leave closing with. An experienced real estate agent can show how you can achieve this goal, and, leave from the closing with your net amount, even with the commission calculated in.If you have a consultation with a realtor who then shows you how you can accomplish your goal… would it not make sense to use them?Every year in the country, over 80% of all homes are sold with the assistance of a real estate professional. Even people that start out attempting to sell on their own eventually turn to a real estate professional. They learn that they need the realtor’s knowledge, experience, and expertise.These are just some of the benefits of using a real estate agent when selling a home:* PRICING: On the free consultation meeting, the first thing a realtor does is to present a competitive market analysis (CMA). The CMA is based on recent homes that have sold in your area that are similar to your home, and current market trends. A CMA is completed with data which only a realtor, or appraiser, have access to. This is the basis for the correct recommended asking price. The correct price right is crucial in home sales. A too high price will drive buyers away. Your property will then sit unsold. In addition, when it comes to price, the statistics are clear that sellers who list with a realtor receive on average 20% more for their homes than for sale by owners.* NIEGHBORHOOD KNOWLEDGE: Regardless of all the daily headlines, and national news that you hear, real estate is a very much a local business. Perspective buyers will know your local housing market, especially if they are working with a realtor. Which means it is important that you also know your local residential market. A realtor that lives, and works, in your area will know your local market. Real estate agents always have access to the most current data, for each neighborhood. These are the things buyer’s care about: property taxes, schools, zoning laws, demographics, proposed projects which may affect your neighborhood, noise levels, shopping, environmental factors, and more. For the home seller, these things are equally significant, because they will affect value, and the marketability, of your home. It is part of what the real estate professional will assist you with.* MARKETING: Today selling a home will simply take more than putting a For Sale sign in the front yard and taking out an ad in the newspaper. In addition to the CMA, the real estate agent will present sellers with a marketing and advertising plan. It will describe step-by-step what they will do to sell your home. It is important to point out here that marketing and advertising expenses can quickly add up. Depending on the advertising plan, and the home, the totals could easily add up the hundreds and thousands. But it is the real estate company that pays this expense when you list with them. Even if the home does not sell, or you need to remove the home from the market, you still will not be responsible for any advertising cost. The realtor’s advertising plan can include coordinating open houses, or writing and placing ads in various media. This could be print, TV advertising, radio commercials, internet websites, distributing brochures, and more. And of course, there is presenting your house to possible buyers.* MLS and REALTOR CONTACTS: Despite the fact that here have been an explosion of numerous homes websites out there, the Multiple Listing Service (MLS), also known as Real Estate Information Network (REIN) still is the ultimate source for accurate and current information on every listed home that is currently for sale. Actually, all of those websites obtain their data either directly, or indirectly, from the MLS. Real estate professionals are the only ones that have access to the MLS. This is also the method used to advertise to other real estate agents who have buyer clients. The moment a home is listed, the information about it can be accessed by all the agents in the area and matched to their buyers. There is a viral effect which means that your home is not just being promoted by your realtor… your home is being seen by every real estate agent in that MLS network. Your realtor may also conduct an open house just for other real estate agents. Then, these realtors recommend your home to their buyers. Studies by the National Association of REALTORS documents that 82% of homes are sold through an agent’s contacts.* EFFICIENCY: Time is a extremely valuable commodity. Real estate agent do not waste precious time showing your house to just anybody who responds to the ad. Any perspective buyers are screened to ensure they are actually capable of buying your home. Realtors weed out, and eliminate, those are not in a position to purchase your home and would clearly be a waste of time. The other agents in the MLS network working with their buyers will also benefit the seller also, by only showing the house to qualified buyers.* NEGOTIATIONS: Locating a buyer is only the end of the marketing phase. Now the process advances to the next phase where the seller and the buyer must agree to price, terms, and many contingencies. The realtor will help you draft the written contracts and counter offers. They know the additional legal documents that may be required in your state. Your agent can also advise you on what stipulations you should make in the contract — items that should remain in the house at closing, for example.* ONGOING ASSISTANCE UNTIL CLOSING: It also does not end after a contract is signed. Once an offer has been accepted everything progresses to another phase, here the buyer’s financing will need to be finalized. The real estate agent coordinates the home inspection, appraisal, moisture inspections, termite inspections, a title search, a real estate lawyer, preparation of the deed, as well as ensures that all repairs and stipulations in the contract are complete. Also each individual mortgage company or other lending institution may require a variety of different things before they give final loan approval to a buyer.After all been scheduled, coordinated, and completed, the day of closing finally arrives. The real estate agent then makes sure that is accomplished correctly. You will only have to review the documents and sign the deed. It is not even a requirement for you to be at closing.This article was an overview of the many benefits to having a realtor represent you. We hope this information has been a benefit to you, and has answered some questions.As stated earlier… there is much more to selling a home then putting a sign in the yard and running a newspaper ad. And… there is much more to buying a home then internet searches and riding around looking for For Sale signs.Real estate agents do exist for a reason. A home transaction involve one of the biggest financial investments most people will ever make in their lives. And the consequences, if not done correctly, can last a lifetime.If the commission really is the issue. Then you show know that the majority of home sellers are able to accomplish their financial goals even with the commission computed in numbers. And, in the overwhelming majority of home purchases, the commission does not come from the buyer. This means there really is no reason for a home buyer to not use a real estate agent. Especially the first time home buyer.Everyday, Realtors helps buyers and sellers, save time, prevent problems, and avoid the mistakes that could cost thousands.