The Realtor®’s Critical Role in the Real
Estate Transaction.
Why Was This List
Prepared?
Surveys show that many homeowners and
homebuyers are not aware of the true value a Realtor® provides
during the course of a real estate transaction. At the same time,
regrettably, Realtors® have generally assumed that the expertise,
professional knowledge and just plain hard work that go into
bringing about a successful transaction were understood and
appreciated.
Many of the most important services and steps are performed
behind the scenes by either the Realtor® or the brokerage staff and
traditionally have been viewed simply as part of their professional
responsibilities to the client.
But, without them the transaction
could be placed in jeopardy.
Listed on the following pages
are nearly 200 typical actions, research steps, processes, and
review stages necessary for a successful residential real estate
transaction and normally provided by a full service real estate
brokerage and for which they are entitled to fair
compensation.
Comprehensiveness
The list is by no means an attempt to set forth a complete list
of services as these may vary within each brokerage and each market.
Many Realtors® routinely provide a wide variety of additional
services that are as varied as the nature of each transaction.
By the same token, some transactions may not require some of
these steps to be equally successful; however, most would agree that
given the unexpected complications that can arise, it’s far better
to know about a step and make an intelligent, informed decision to
skip it, than to not know the possibility even existed. The Realtor®
Commitment Through it all, the Realtor’s® personal and professional
commitment is to ensure that a seller and buyer are brought together
in an agreement that provides each with a “win” that is fair and
equitable.The Realtor’s® motivation is easy to understand. For most
full-service brokerages, they receive no compensation unless and
until the sale closes.
By contrast, there are firms that offer “limited services” in
exchange for an up-front flat fee, or perhaps offer a menu of
pay-as-you-go or “a la carte” options. Some even offer a sliding
scale ranging from limited to full service. In these cases, the
Realtor’s® compensation is based on these reduced service levels
with the seller bearing full responsibility for all the other steps
and procedures in the selling process. In short, the marketplace
truism is that “you get what you pay for.”
A Variety of Choices
It can truly be said that the variety of brokerage business
models in today’s real estate industry affords the homeowner a
greater range of options than ever before.
But no matter which option is chosen,
before signing a Listing Agreement or otherwise engaging the
services of a Realtor® and agreeing to compensate them, homeowners
should understand exactly what services will, or will not, be
provided.
Critical Role
Listed here are nearly 200 typical actions, research steps,
procedures, processes and review stages in a successful residential
real estate transaction that are normally provided by full service
real estate brokerages in return for their sales commission.
Depending on the transaction, some may take minutes, hours, or even
days to complete, while some may not be needed. More importantly,
they reflect the level of skill, knowledge and attention to detail
required in today’s real estate transaction, underscoring the
importance of having help and guidance from someone who fully
understands the process – a Realtor®.
And never forget that Realtors® are pledged to uphold the
stringent, enforceable tenets of the Realtor® Code of Ethics in
their professional dealings with the public. Not every real estate
licensee holds Realtor® membership. Make sure yours does!
Pre-Listing Activities
1. Make appointment with seller for listing
presentation.
2. Send seller a written or e-mail
confirmation of listing appointment and call to
confirm.
3. Review pre-appointment
questions.
4. Research all comparable currently
listed properties.
5. Research sales activity for
past 18 months from MLS and public records
databases.
6. Research “Average Days on Market” for
this property of this type, price range and
location.
7. Download and review property tax roll
information.
8. Prepare “Comparable Market Analysis”
(CMA) to establish fair market value.
9. Obtain copy
of subdivision plat/complex lay-out.
10. Research property’s
ownership and deed type.
11. Research property’s public record
information for lot size and dimensions.
12. Research and verify
legal description.
13. Research property’s land use coding and
deed restrictions.
14. Research property’s current use and
zoning.
15. Verify legal names of owner(s) in county’s public
property records.
16. Prepare listing presentation package with
above materials and listing™ information.
17. Perform exterior
“Curb Appeal Assessment” of subject property.
18. Compile and assemble formal file on
property.
19. Confirm current public schools and explain impact
of schools on market value.
20. Review listing appointment
checklist to ensure that all steps and actions have been
completed.
Listing Appointment
Presentation
21. Give seller an overview of current
market conditions and projections.
22. Review agent’s and
company’s credentials and accomplishments in the market.
23.
Present company’s profile and position or “niche” in the
marketplace.
24. Present CMA results to seller, including
comparables, solds, current listings and expireds.
25. Offer
pricing strategy based on professional judgment and interpretation
of current market conditions.
26. Discuss goals with seller to
market effectively.
27. Explain market power and benefits of
Multiple Listing Service.
28. Explain market power of
Realtor.com.
29. Explain the work the brokerage and agent do
“behind the scenes” and agent’s availability on weekends.
30.
Explain agent’s role in taking calls to screen for qualified buyers
and protect seller from curiosity seekers.
31. Present and
discuss strategic master marketing plan.
32. Explain different
agency relationships and determine seller’s preference.
33.
Review and explain all clauses in Listing Contract and Addendum and
obtain seller’s signature.
Once Property is Under Listing
Agreement
34. Review current title
information.
35. Measure overall and heated square
footage.
36. Measure interior room sizes.
37. Confirm lot size
via owner’s copy of certified survey, if available.
38. Note any
and all unrecorded property lines, agreements, easements.
39.
Obtain house plans, if applicable and available.
40. Review house
plans and make copy.
41. Order plat map for retention in
property’s listing file.
42. Prepare showing instructions for
buyers’ agents and agree on showing time window with seller.
43.
Obtain current mortgage loan(s) information: companies and loan
account numbers.
44. Verify current loan information with
lender(s).
45. Check assumability of loan(s) and any special
requirements.
46. Discuss possible buyer financing alternatives
and options with seller.
47. Review current appraisal, if
available.
48. Identify Home Owner Association manager, if
applicable.
49. Verify Home Owner Association fees with manager:
mandatory or optional and current annual fee .
50. Order copy of
Homeowner Association bylaws, if applicable.
51. Research
electricity availability and supplier’s name and phone
number.
52. Calculate average utility usage from last 12 months
of bills.
53. Research and verify city sewer/septic tank
system.
54. Water system: calculate average water fees or rates
from last 12 months of bills.
55. Well water: confirm well
status, depth and output from well report.
56. Natural gas:
research/verify availability and supplier’s name and phone
number.
57. Verify security system, current term of service and
whether owned or leased.
58. Verify if seller has transferable
Termite Bond.
59. Ascertain need for lead-based paint
disclosure.
60. Prepare detailed list of property amenities and
assess market impact.
61. Prepare detailed list of property’s
“Inclusions and Conveyances
with Sale.”
62. Compile list of completed repairs and
maintenance items.
63. Send “Vacancy Checklist” to seller if
property is vacant.
64. Explain benefits of home owner warranty
to seller.
65. Assist sellers with completion and submission of
home owner warranty application.
66. When received, place home
owner warranty in property file for conveyance at time of
sale.
67. Have extra key made for lockbox.
68. Verify if
property has rental units involved. And, if so:
69. ? make copies
of all leases for retention in listing file.
70. ? verify all
rents and deposits.
71. ? inform tenants of listing and discuss
how showings will be handled.
72. Arrange for installation of
yard sign.
73. Assist seller with completion of Seller’s
Disclosure form.
74. “New Listing Checklist” completed.
75.
Review results of curb appeal assessment with seller and provide
suggestions to improve salability.
76. Review results of interior
décor assessment and suggest changes to shorten time on
market.
77. Assign Information for sellers to check
progress.
Entering Property in Multiple Listing
Service Database
78. Prepare MLS Profile Sheet — agent is
responsible for “quality control” and accuracy of listing
data.
79. Enter property data from profile sheet into MLS listing
database.
80. Proofread MLS database listing for accuracy,
including proper placement in mapping function.
81. Add property
to company’s active listings list.
82. Provide seller with signed
copies of Listing Agreement and MLS Profile Sheet Data Form within
48hours.
83. Take additional photos for upload into MLS and use
in flyers. Discuss efficacy of panoramic
photography.
Marketing the Listing
84. Create print and Internet ads with seller’s
input.
85. Coordinate showings with owners, tenants,
and other Realtors® . Return all calls, weekends
included.
86. Install electronic lock box if
authorized by owner and program with agreed-upon showing time
windows.
87. Prepare mailing and contact
list.
88. Generate mail-merge letters to contact
list.
89. Order “Just Listed” labels and
reports.
90. Prepare flyers and feedback
faxes.
91. Review MLS listings regularly to ensure
property remains competitive in price, terms, conditions and
availability.
92. Prepare property marketing brochure
for seller’s review.
93. Arrange for printing or
copying of supply of marketing brochures or
fliers.
94. Place marketing brochures in all company
agent mail boxes.
95. Upload listing to company and
agent Internet site, if applicable.
96. Mail Out “Just
Listed” notice to all neighborhood residents.
97.
Advise network referral program of listing.
98.
Provide marketing data to buyers coming through international
relocation networks.
99. Provide marketing data to
buyers coming from referral network.
100. Provide “Special
Feature” cards for marketing, if applicable.
101. Submit ads to
company's participating Internet real estate sites.
102. Price
changes conveyed promptly to all Internet groups.
103.
Reprint/supply brochures promptly, as needed.
104. Loan information reviewed and updated in MLS as
required.
105. Feedback e-mails/faxes sent to buyers’ agents
after showings.
106. Review weekly Market Study.
107. Discuss
feedback from showing agents with seller to determine if changes
will accelerate the sale.
108. Place regular weekly update calls
to seller to discuss marketing and pricing.
109. Promptly enter
price changes in MLS listing database.
The Offer and
Contract
110. Receive and review all offer to
purchase contracts submitted by buyers or buyers' agents.
111.
Evaluate offer(s) and prepare a “net sheet” on each for the owner
for comparison purposes.
112. Counsel seller on offers. Explain
merits and weakness of each component of each offer.
113. Contact
buyers’ agents to review buyer’s qualifications and discuss
offer.
114. Fax/deliver Seller’s Disclosure to buyer’s agent or
buyer upon request and prior to offer if possible.
115. Confirm
buyer is pre-qualified by calling loan officer.
116. Obtain
pre-qualification letter on buyer from loan officer.
117.
Negotiate all offers on seller’s behalf, setting time limit for loan
approval and closing date.
118. Prepare and convey any
counteroffers, acceptance or amendments to buyer’s agent.
119.
Fax copies of contract and all addendums to closing attorney or
title company.
120. When an Offer to Purchase Contract is
accepted and signed by seller, deliver signed offer to buyer’s
agent.
121. Record and promptly deposit buyer’s earnest money in
escrow account.
122. Disseminate “Under-Contract Showing
Restrictions” as seller requests.
123. Deliver copies of fully
signed Offer to Purchase Contract to seller.
124. Fax/deliver
copies of Offer to Purchase Contract to selling agent.
125. Fax
copies of Offer to Purchase Contract to lender.
126. Provide
copies of signed Offer to Purchase Contract for office file.
127.
Advise seller in handling additional offers to purchase submitted
between contract and closing.
128. Change status in MLS to “Sale
Pending.”
129. Update MLS to show “Sale Pending.”
130.
Review buyer’s credit report results — advise seller of worst and
best case scenarios.
131. Provide credit report information to
seller if property will be seller-financed.
132. Assist buyer
with obtaining financing, if applicable and follow-up as
necessary.
133. Coordinate with lender on Discount Points being
locked in with dates.
134. Deliver unrecorded property
information to buyer.
135. Order septic system inspection, if
applicable.
136. Receive and review septic system report and
assess any possible impact on sale.
137. Deliver copy of septic
system inspection report lender and buyer.
138. Deliver Well Flow
Test Report copies to lender and buyer and property listing
file.
139. Verify termite inspection ordered.
140. Verify mold
inspection ordered, if required.
Tracking the Loan Process
141. Confirm verifications of deposit and
buyer’s employment have been returned.
142. Follow loan
processing through to the underwriter.
143. Add lender and other
vendors to Information Sheet so agents, buyer and seller
can track progress of sale.
144. Contact lender weekly to ensure
processing is on track.
145. Relay final approval of buyer’s loan
application to seller. Home Inspection
146. Coordinate buyer’s
professional home inspection with seller.
147. Review home inspector’s report.
148. Enter
completion.
149. Explain seller’s responsibilities with respect
to loan limits and interpret any clauses in the contract.
150.
Ensure seller’s compliance with Home Inspection Clause
requirements.
151. Recommend or assist seller with identifying
and negotiating with trustworthy contractors to perform any
required repairs.
152. Negotiate payment and oversee
completion of all required repairs on seller’s behalf, if
needed.
The
Appraisal
153. Schedule appraisal.
154. Provide
comparable sales used in market pricing to appraiser.
155. Follow
up on appraisal.
156. Enter completion into Information
Worksheet
157. Assist seller in questioning appraisal report if
it seems too low.
Closing Preparations and
Duties
158. Contract is signed by all
parties.
159. Coordinate closing process with buyer’s agent and
lender.
160. Update closing forms and files.
161. Ensure all
parties have all forms and information needed to close the
sale.
162. Select location where closing will be held.
163.
Confirm closing date and time and notify all parties.
164. Assist
in solving any title problems (boundary disputes, easements, etc) or
in obtaining death certificates.
165. Work with buyer’s agent in
scheduling and conducting buyer’s final walk-thru prior to
closing.
166. Research all tax, HOA, utility and other applicable
prorations.
167. Request final closing figures from closing agent
(attorney or title company).
168. Receive and carefully review
closing figures to ensure accuracy of preparation.
169. Forward
verified closing figures to buyer’s agent.
170. Request copy of
closing documents from closing agent.
171. Confirm buyer and
buyer’s agent has received title insurance commitment.
172.
Provide Home Owners Warranty for availability at closing.
173.
Reviews all closing documents carefully for errors.
174. Forward
closing documents to absentee seller, as requested.
175. Review
documents with closing agent.
176. Provide earnest money deposit
check from escrow account to closing agent.
177. Coordinate this
closing with seller's next purchase and resolve any timing
problems.
178. Have a “no surprises” closing and present seller a
net proceeds check at closing.
179. Refer sellers to one of the
best agents at their destination, if applicable.
180. Change MLS
listing status to Sold. Enter sale date and price, selling broker
and agent’s ID numbers,etc.
181. Close out listing.
Follow Up After Closing
182. Answer questions about filing claims
with Home Owner Warranty company, if requested.
183. Attempt to
clarify and resolve any conflicts about repairs if buyer is not
satisfied.
184. Respond to any follow-up calls and provide any
additional information required from office files.
Are You ready to do ALL of this
Yourself?? | 
