|
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
they receive in the services 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 have been traditionally
viewed simply as part of their professional responsibilities to their client.
But, without them, the transaction could be placed in jeopardy.
This
publication seeks to close that gap. 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.
Completeness of the List
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 the steps to be 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 that it is not needed, 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 of them a "win" that is fair and
equitable. Their motivation is easy to understand. For most full-service
brokerages, there is no compensation unless and until the sale closes. By
contrast, there are firms that offer "limited-services" in exchange for either
an upfront flat fee or perhaps offer a menu of pay-as-you-go or "a la' carte"
services. Some even offer a sliding scale from limited to full service. In these
cases, the REALTOR'S® compensation is based on the level of service they
provide. In short, it's the age-old market adage that "you get what you pay
for."
A
Variety of Choices
It
can truly be said 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 homeowners choose, before signing a Listing
Agreement or otherwise engaging the services of a REALTOR®
and agreeing to compensate them, they should understand exactly what specific
services will, or will not, be provided.
Why Use A REALTOR®?
First,
not every real estate agent or broker is a REALTOR®.
That term and the familiar Block "R" logo are trademarked by the National
Association of REALTORS® and can only be used by those are REALTOR® members
through their local association of REALTORS®. While all REALTORS® are
state-issued licenses as agents or brokers, the major difference between a "real
estate licensee" and a REALTOR® is that REALTORS® have taken an oath to
subscribe to a stringent, enforceable Code of Ethics with Standards of Practice
that promote the fair, ethical and honest treatment of all parties in a
transaction. Non-member licensees have taken no such oath and are not morally
bound to the ethical practices and principles set for in the REALTOR® Code. For
that extra measure of peace of mind, ensure the individual seeking to represent
you is both a real estate licensee and a REALTOR®.
The REALTOR'S®
Critical Role in the Transaction
Listed
here are the 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 & deed type
11 Research
property's public record information for lot size & 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 HomeTrack™ 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 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 & 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 View-MLS-Homes.com, EXITRealty.com and Homeseekers.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 all 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 & 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 & 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 & 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
Entering Property in Multiple Listing Service Database
77 Prepare
MLS Property Profile Sheet -- Agents is responsible for "quality control" and
accuracy of listing data
78 Enter
property data from Profile Sheet into MLS Listing Database
79 Proofread
MLS database listing for accuracy - including proper placement in mapping
function
80 Add
property to company's Active Listings list
81 Provide
seller with signed copies of Listing Agreement and MLS Profile Sheet Data Entry
Form within 48 hours
82
Take photos for upload into MLS and use in flyers.
83
Take numerous panoramic photos to create a Visual Tour of the interior &
exterior of the property & promote on
www.TourInterior.com
Marketing The Listing
84 Create
print and Internet ads with seller's input
85
Coordinate showings with owners, tenants, and other Realtors®.
86 Return
all calls - weekends included
87 Install
electronic lock box if authorized by owner and program with agreed-upon showing
time windows
88 Prepare
mailing and contact list
89 Generate
mail-merge letters to contact list
90 Order
"Just Listed" labels & reports
91 Prepare
flyers & feedback faxes
92 Review
comparable MLS listings regularly to ensure property remains competitive in
price, terms, conditions and availability
93 Prepare
property marketing brochure for seller's review
94 Arrange
for printing or copying of supply of marketing brochures or fliers
95 Place
marketing brochures in all company agent mail boxes
96 Upload
listing to company and agent Internet site, if applicable
97 Mail Out
"Just Listed" notice to all neighborhood residents
98 Advise
Network Referral Program of listing
99 Provide
marketing data to buyers coming through international relocation networks
100 Provide
marketing data to buyers coming from referral network
101 Provide
"Special Feature" cards for marketing, if applicable
102 Submit
ads to company's participating Internet real estate sites
103 Price
changes conveyed promptly to all Internet groups
104
Reprint/supply brochures promptly as needed
105 Loan
information reviewed and updated in MLS as required
106 Feedback
e-mails/faxes sent to buyers' agents after showings
107 Review
weekly Market Study
108
Discuss feedback from showing agents with seller to determine if changes will
accelerate the sale
109 Place
regular weekly update calls to seller to discuss marketing & pricing
110 Promptly
enter price changes in MLS listing database
The Offer and Contract
111
Receive and review all Offer to Purchase contracts submitted by buyers or
buyer's agents.
112
Evaluate offer(s) and prepare a "net sheet" on each for the owner for comparison
purposes
113 Counsel
seller on offers. Explain merits and weakness of each component of each offer
114 Contact
buyers' agents to review buyer's qualifications and discuss offer
115 Fax or
deliver Seller's Disclosure form to buyer's agent or buyer (upon request and
prior to offer being made if possible)
116 Confirm
buyer is pre-qualified by calling Loan Officer
117 Obtain
pre-qualification letter on buyer from Loan Officer
118
Negotiate all offers on seller's behalf, setting time limit for loan approval
and closing date
119 Prepare
and convey any counteroffers, acceptance or amendments to buyer's agent
120 Fax
copies of contract and all addendums to closing attorney or title company
121 When
an Offer to Purchase Contract is accepted and signed by seller, deliver signed
offer to buyer's agent
122 Record
and promptly deposit buyer's earnest money in escrow account.
123
Disseminate "Under-Contract Showing Restrictions" as seller requests
124 Deliver
copies of fully signed Offer to Purchase contract to seller
125
Fax/deliver copies of Offer to Purchase contract to Selling Agent
126 Fax
copies of Offer to Purchase contract to lender
127 Provide
copies of signed Offer to Purchase contract for office file
128 Advise
seller in handling any additional offers to purchase that may be submitted
between contract and closing
129 Change
status in MLS to "Sale Pending"
130 Update
HomeTrack™ to show "Sale Pending"
131 Review
buyer's credit report results -- Advise seller of worst and best case scenarios
132 Provide
credit report information to seller if property will be seller-financed
133 Assist
buyer with obtaining financing, if applicable and follow-up as necessary
134
Coordinate with lender on Discount Points being locked in with dates
135 Deliver
unrecorded property information to buyer
136 Order
septic system inspection, if applicable
137 Receive
and review septic system report and assess any possible impact on sale
138 Deliver
copy of septic system inspection report lender & buyer
139 Deliver
Well Flow Test Report copies to lender & buyer and property listing file
140 Verify
termite inspection ordered
141 Verify
mold inspection ordered, if required
Tracking the Loan Process
142 Confirm
Verifications Of Deposit & Buyer's Employment Have Been Returned
143 Follow Loan
Processing Through To The Underwriter
144 Add lender and
other service vendors to HomeTrack™ so agents, buyer and seller can track
progress of sale
145 Contact lender
weekly to ensure processing is on track
146 Relay final
approval of buyer's loan application to seller
Home Inspection
147
Coordinate buyer's professional home inspection with seller
148 Review
home inspector's report
149 Enter
completion into HomeTrack™
150
Explain seller's responsibilities with respect to loan limits and interpret any
clauses in the contract
151 Ensure
seller's compliance with Home Inspection Clause requirements
152
Recommend or assist seller with identifying and negotiating with trustworthy
contractors to perform any required repairs
153
Negotiate payment and oversee completion of all required repairs on seller's
behalf, if needed
The Appraisal
154 Schedule
Appraisal
155 Provide
comparable sales used in market pricing to Appraiser
156
Follow-Up On Appraisal
157 Enter
completion into HomeTrack™
158 Assist
seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
159 Contract
Is Signed By All Parties
160
Coordinate closing process with buyer's agent and lender
161 Update
closing forms & files
162 Ensure
all parties have all forms and information needed to close the sale
163 Select
location where closing will be held
164 Confirm
closing date and time and notify all parties
165 Assist
in solving any title problems (boundary disputes, easements, etc) or in
obtaining Death Certificates
166 Work
with buyer's agent in scheduling and conducting buyer's
Final Walk-Thru prior to closing
167 Research
all tax, HOA, utility and other applicable prorations
168 Request
final closing figures from closing agent (attorney or title company)
169 Receive
& carefully review closing figures to ensure accuracy of preparation
170 Forward
verified closing figures to buyer's agent
171 Request
copy of closing documents from closing agent
172 Confirm
buyer and buyer's agent have received title insurance commitment
173 Provide
"Home Owners Warranty" for availability at closing
174 Reviews
all closing documents carefully for errors
175 Forward
closing documents to absentee seller as requested
176 Review
documents with closing agent (attorney)
177 Provide
earnest money deposit check from escrow account to closing agent
178
Coordinate this closing with seller's next purchase and resolve any timing
prpblems
179 Have a
"no surprises" closing and present seller a net proceeds check at closing
180 Refer
sellers to one of the best agents at their destination, if applicable
181 Change
MLS listing status to Sold. Enter sale date and price, selling broker and
agent's ID numbers, etc.
182 Close
out listing in HomeTrack™
Follow Up After Closing
183 Answer
questions about filing claims with Home Owner Warranty company if requested
184 Attempt
to clarify and resolve any conflicts about repairs if buyer is not satisfied
185
Respond to any follow-on calls and provide any additional information required
from office files.
Compliments of Paula
Bean,
REALTOR, C-CREC, GREC, e-PRO
| |
Copyright 2003-2008 View-MLS-Homes.com All rights reserved
View-MLS-Homes.com is not a multiple listing service
The site's owner is a member of Midwest Real Estate Data (MRED)
By submitting your contact information including name, telephone number,
address and/or e-mail address on any form on this site, you are consenting to be contacted.
|
|