The RealtorCritical 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.
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.
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.
Why Use A Realtor®?
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 who 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 forth 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®.
Visit the Orlando Regional Realtor® Association’s
website, orlRealtor.com, for a searchable list of our Realtor® members.
The Realtor’s® 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 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 that all steps and actions have been completed.
Listing Appointment Presentation
1
Give seller an
overview of current market conditions and projections.
2
Review agent’s
and company’s credentials and accomplishments in the market.
3
Present
company’s profile and position or “niche” in the marketplace.
4
Present CMA
results to seller, including comparables, solds, current listings and expireds.
5
Offer pricing
strategy based on professional judgment and interpretation of current market
conditions.
6
Discuss goals
with seller to market effectively.
7
Explain market
power and benefits of Multiple Listing Service.
8
Explain market
power of HomeTrack™, IDX, and Realtor.com.
9
Explain the
work the brokerage and agent do “behind the scenes” and agent’s availability on
weekends.
10
Explain agent’s
role in taking calls to screen for qualified buyers and protect seller from
curiosity seekers.
11
Present and
discuss strategic master marketing plan.
12
Explain
different agency relationships and determine seller’s preference.
13
Review and
explain all clauses in Listing Contract and Addendum and obtain seller’s
signature.
Once Property is Under Listing Agreement
1
Review current
title information.
2
Measure overall
and heated square footage.
3
Measure
interior room sizes.
4
Confirm lot
size via owner’s copy of certified survey, if available.
5
Note any and
all unrecorded property lines, agreements, easements.
6
Obtain house
plans, if applicable and available.
7
Review house
plans and make copy.
8
Order plat map
for retention in property’s listing file.
9
Prepare showing
instructions for buyers’ agents and agree on showing time window with seller.
10
Obtain current
mortgage loan(s) information: companies and loan account numbers.
11
Verify current
loan information with lender(s).
12
Check
assumability of loan(s) and any special requirements.
13
Discuss
possible buyer financing alternatives and options with seller.
14
Review current
appraisal, if available.
15
Identify Home
Owner Association manager, if applicable.
16
Verify Home
Owner Association fees with manager: mandatory or optional and current annual
fee.
17
Order copy of
Homeowner Association bylaws, if applicable.
18
Research
electricity availability and supplier’s name and phone number.
19
Calculate
average utility usage from last 12 months of bills.
20
Research and
verify city sewer/septic tank system.
21
Water system:
calculate average water fees or rates from last 12 months of bills.
22
Well water:
confirm well status, depth and output from well report.
23
Natural gas:
research/verify availability and supplier’s name and phone number.
24
Verify security
system, current term of service and whether owned or leased.
25
Verify if
seller has transferable Termite Bond.
26
Ascertain need
for lead-based paint disclosure.
27
Prepare
detailed list of property amenities and assess market impact.
28
Prepare
detailed list of property’s “Inclusions and Conveyances with Sale.”
29
Compile list of
completed repairs and maintenance items.
30
Send “Vacancy
Checklist” to seller if property is vacant.
31
Explain
benefits of home owner warranty to seller.
32
Assist sellers
with completion and submission of home owner warranty application.
33
When received,
place home owner warranty in property file for conveyance at time of sale.
34
Have extra key
made for lockbox.
35
Verify if
property has rental units involved. And, if so:
36
? make copies
of all leases for retention in listing file.
37
? verify all
rents and deposits.
38
? inform
tenants of listing and discuss how showings will be handled.
39
Arrange for
installation of yard sign.
40
Assist seller
with completion of Seller’s Disclosure form.
41
“New Listing
Checklist” completed.
42
Review results
of curb appeal assessment with seller and provide suggestions to improve
salability.
43
Review results
of interior décor assessment and suggest changes to shorten time on market.
44
Assign
HomeTrack™ login and password for sellers to check progress.
Entering Property in Multiple Listing Service
Database
1
Prepare MLS
Profile Sheet — agent is responsible for “quality control” and accuracy of
listing data.
2
Enter property
data from profile sheet into MLS listing database.
3
Proofread MLS
database listing for accuracy, including proper placement in mapping function.
4
Add property to
company’s active listings list.
5
Provide seller
with signed copies of Listing Agreement and MLS Profile Sheet Data Form within
48 hours.
6
Take additional
photos for upload into MLS and use in flyers. Discuss efficacy of panoramic
photography.
Marketing the Listing
1
Create print
and Internet ads with seller’s input.
2
Coordinate
showings with owners, tenants, and other Realtors®.
Return all calls, weekends included.
3
Install
electronic lock box if authorized by owner and program with agreed-upon showing
time windows.
4
Prepare mailing
and contact list.
5
Generate
mail-merge letters to contact list.
6
Order “Just
Listed” labels and reports.
7
Prepare flyers
and feedback faxes.
8
Review
comparable MLS listings regularly to ensure property remains competitive in
price, terms, conditions and availability.
9
Prepare
property marketing brochure for seller’s review.
10
Arrange for
printing or copying of supply of marketing brochures or fliers.
11
Place marketing
brochures in all company agent mail boxes.
12
Upload listing
to company and agent Internet site, if applicable.
13
Mail Out “Just
Listed” notice to all neighborhood residents.
14
Advise network
referral program of listing.
15
Provide
marketing data to buyers coming through international relocation networks.
16
Provide
marketing data to buyers coming from referral network.
17
Provide
“Special Feature” cards for marketing, if applicable.
18
Submit ads to
company's participating Internet real estate sites.
19
Price changes
conveyed promptly to all Internet groups.
20
Reprint/supply
brochures promptly, as needed.
21
Loan
information reviewed and updated in MLS as required.
22
Feedback
e-mails/faxes sent to buyers’ agents after showings.
23
Review weekly
Market Study.
24
Discuss
feedback from showing agents with seller to determine if changes will accelerate
the sale.
25
Place regular
weekly update calls to seller to discuss marketing and pricing.
26
Promptly enter
price changes in MLS listing database.
The Offer and Contract
1
Receive and
review all offer to purchase contracts submitted by buyers or buyers' agents.
2
Evaluate
offer(s) and prepare a “net sheet” on each for the owner for comparison
purposes.
3
Counsel seller
on offers. Explain merits and weakness of each component of each offer.
4
Contact buyers’
agents to review buyer’s qualifications and discuss offer.
5
Fax/deliver
Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if
possible.
6
Confirm buyer
is pre-qualified by calling loan officer.
7
Obtain
pre-qualification letter on buyer from loan officer.
8
Negotiate all
offers on seller’s behalf, setting time limit for loan approval and closing
date.
9
Prepare and
convey any counteroffers, acceptance or amendments to buyer’s agent.
10
Fax copies of
contract and all addendums to closing attorney or title company.
11
When an Offer
to Purchase Contract is accepted and signed by seller, deliver signed offer to
buyer’s agent.
12
Record and
promptly deposit buyer’s earnest money in escrow account.
13
Disseminate
“Under-Contract Showing Restrictions” as seller requests.
14
Deliver copies
of fully signed Offer to Purchase Contract to seller.
15
Fax/deliver
copies of Offer to Purchase Contract to selling agent.
16
Fax copies of
Offer to Purchase Contract to lender.
17
Provide copies
of signed Offer to Purchase Contract for office file.
18
Advise seller
in handling additional offers to purchase submitted between contract and
closing.
19
Change status
in MLS to “Sale Pending.”
20
Update
HomeTrack™ to show “Sale Pending.”
21
Review buyer’s
credit report results — advise seller of worst and best case scenarios.
22
Provide credit
report information to seller if property will be seller-financed.
23
Assist buyer
with obtaining financing, if applicable and follow-up as necessary.
24
Coordinate with
lender on Discount Points being locked in with dates.
25
Deliver
unrecorded property information to buyer.
26
Order septic
system inspection, if applicable.
27
Receive and
review septic system report and assess any possible impact on sale.
28
Deliver copy of
septic system inspection report lender and buyer.
29
Deliver Well
Flow Test Report copies to lender and buyer and property listing file.
30
Verify termite
inspection ordered.
31
Verify mold
inspection ordered, if required.
Tracking the Loan Process
1
Confirm
verifications of deposit and buyer’s employment have been returned.
2
Follow loan
processing through to the underwriter.
3
Add lender and
other vendors to HomeTrack™ so agents, buyer and seller can track progress of
sale.
4
Contact lender
weekly to ensure processing is on track.
5
Relay final
approval of buyer’s loan application to seller.
Home Inspection
1
Coordinate
buyer’s professional home inspection with seller.
2
Review home
inspector’s report.
3
Enter
completion into HomeTrack™.
4
Explain
seller’s responsibilities with respect to loan limits and interpret any clauses
in the contract.
5
Ensure seller’s
compliance with Home Inspection Clause requirements.
6
Recommend or
assist seller with identifying and negotiating with trustworthy contractors to
perform any required repairs.
7
Negotiate
payment and oversee completion of all required repairs on seller’s behalf, if
needed.
The Appraisal
1
Schedule
appraisal.
2
Provide
comparable sales used in market pricing to appraiser.
3
Follow up on
appraisal.
4
Enter
completion into HomeTrack™.
5
Assist seller
in questioning appraisal report if it seems too low.
Closing Preparations and Duties
1
Contract is
signed by all parties.
2
Coordinate
closing process with buyer’s agent and lender.
3
Update closing
forms and files.
4
Ensure all
parties have all forms and information needed to close the sale.
5
Select location
where closing will be held.
6
Confirm closing
date and time and notify all parties.
7
Assist in
solving any title problems (boundary disputes, easements, etc) or in obtaining
death certificates.
8
Work with
buyer’s agent in scheduling and conducting buyer’s final walk-thru prior to
closing.
9
Research all
tax, HOA, utility and other applicable prorations.
10
Request final
closing figures from closing agent (attorney or title company).
11
Receive and
carefully review closing figures to ensure accuracy of preparation.
12
Forward
verified closing figures to buyer’s agent.
13
Request copy of
closing documents from closing agent.
14
Confirm buyer
and buyer’s agent has received title insurance commitment.
15
Provide Home
Owners Warranty for availability at closing.
16
Reviews all
closing documents carefully for errors.
17
Forward closing
documents to absentee seller, as requested.
18
Review
documents with closing agent (attorney).
19
Provide earnest
money deposit check from escrow account to closing agent.
20
Coordinate this
closing with seller's next purchase and resolve any timing problems.
21
Have a “no
surprises” closing and present seller a net proceeds check at closing.
22
Refer sellers
to one of the best agents at their destination, if applicable.
23
Change MLS
listing status to Sold. Enter sale date and price, selling broker and agent’s ID
numbers, etc.
24
Close out
listing in HomeTrack™.
Follow Up After Closing
1
Answer
questions about filing claims with Home Owner Warranty company, if requested.
2
Attempt to
clarify and resolve any conflicts about repairs if buyer is not satisfied.
3
Respond to any
follow-up calls and provide any additional information required from office
files.
PaulaBean/ValueofaRealtor.doc
