Critical Role of a REALTOR®
A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home.
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full-service real estate brokerages perform this work for you. Depending on the transaction, some steps may take minutes, hours or even days to complete, while some may not be needed at all.
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More importantly, this list reflects the level of skill, knowledge and attention to detail required in today´s real estate transaction, while underscoring the importance of having help and guidance from someone who fully understands the process - a REALTOR®.
A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:
You are being provided with a list of nearly 200 typical actions, research steps, procedures, processes and review stages involved in a successful residential real estate transaction. In return for their sales commission.
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 properties of this type, price range and location
7. Download and review property tax roll information
8. Prepare "Competetive Market Position Analysis" (CPMA) 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
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 CPMA 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 web marketing, IDX
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 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
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
Reviewing Information
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 HOA manager if applicable
49. Verify HOA fees with manager - mandatory or optional and current annual fee
50. Order copy of HOA 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 homeowner warranty to seller
65. Assist sellers with completion and submission of homeowner warranty application
66. When received, place homeowner 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 retentions 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
77. Load listing into transaction management software program
Entering Property in Multiple Listing Service Database
Once Property is Under Listing Agreement
78. Prepare MLS Profile Sheet - Agents are 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 list of active listings
82. Provide seller with signed copies of listing agreement and MLS Profile Data Sheet Form within 48 hours
83. Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography
Marketing the Listing
84. Pays for all marketing and advertising costs.
85. Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more.
86. Handles all showings.
87. Brings a network of known, trusted real estate professionals. If your agent doesn't have the answer, he or she likely knows someone who does.
88. Always has your interests in mind so you always have someone on your side.
89. Can handle and advise on all price and contract negotiations.
90. Provides you with all the possible options and opportunities without holding back.
91. Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
92. Has the knowledge to help you ask the right questions.
93. Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering.
94. This objective viewpoint will help you make the necessary changes to get your home sold.
95. Your time is valuable. A real estate agent allows you to spend your time how you want
96. Create print and Internet ads with seller's input
97. Coordinate showings with owners, tenants, and other REALTORS®. Return all calls - weekends included.
98.. Install electronic lock box if authorized by owner. Program with agreed-upon showing time windows
99. Prepare mailing and contact list
100. Generate mail-merge letters to contact list
101. Order "Just Listed" labels and reports
102. Prepare flyers and feedback faxes
103. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability
104. Prepare property marketing brochure for seller's review
105. Arrange for printing or copying of supply of marketing brochures or fliers
106. Place marketing brochures in all company agent mail boxes
107. Upload listing to company and agent Internet site, if applicable
108. Mail "Just Listed" notices to all neighborhood residents
109. Advise Network Referral Program of listing
110. Provide marketing data to buyers coming through international relocation networks
111. Provide marketing data to buyers coming from referral network
112. Provide "Special Feature" cards for marketing, if applicable
113. Submit ads to company's participating Internet real estate sites
114. Promptly convey price changes to all Internet groups
115. Reprint/supply brochures promptly as needed
116. Loan information reviewed and updated in MLS as required
117. Feedback e-mails/faxes sent to buyers' agents after showings
118. Review weekly market study
119. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
120. Place regular weekly update calls to seller to discuss marketing and pricing
121. Promptly enter price changes in MLS listing database
122. Receive and review all "Offer to Purchase" contracts submitted by buyers or buyers' agents.
123. Evaluate offer(s) and prepare a "net sheet" on each for the owner for comparison purposes
124. Counsel seller on offers. Explain merits and weakness of each component of each offer
125. Contact buyers' agents to review buyer's qualifications and discuss offer
126. Fax/deliver Seller's Disclosure to buyer's agent or buyer upon request and prior to offer if possible
127. Confirm buyer is pre-qualified by calling loan officer
128. Obtain pre-qualification letter on buyer from loan officer
129. Negotiate all offers on seller's behalf, setting time limit for loan approval and closing date
130. Prepare and convey any counteroffers, acceptance or amendments to buyer's agent
131. Fax copies of contract and all addendums to closing attorney or title company
132. When "Offer to Purchase" contract is accepted and signed by seller, deliver to buyer's agent
133. Record and promptly deposit buyer's earnest money in escrow account
134. Disseminate "Under-Contract Showing Restrictions" as seller requests
135. Deliver copies of fully signed "Offer to Purchase" contract to seller
136. Fax/deliver copies of "Offer to Purchase" contract to selling agent
137. Fax copies of Offer to Purchase contract to lender
138. Provide copies of signed Offer to Purchase contract for office file
139. Advise seller in handling additional offers to purchase submitted between contract and closing
140. Change status in MLS to "Sale Pending"
129. Update transaction management program 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
141. Assist buyer with obtaining financing if applicable and follow-up as necessary
142. Coordinate with lender on discount points being locked in with dates
143. Deliver unrecorded property information to buyer
144. Order septic system inspection, if applicable
145. Receive and review septic system report and assess any possible impact on sale
146. Deliver copy of septic system inspection report to lender and buyer
147. Deliver copies of well-flow test report copies to lender and buyer and property listing file
148. Verify termite inspection ordered
149. Verify mold inspection ordered, if required
Tracking the Loan Process
The Offer and Contract
150. Confirm that "Verifications Of Deposit" and buyer's employment have been returned
151. Follow loan processing through to the underwriter
152. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale
153. Contact lender weekly to ensure processing is on track
154. Relay final approval of buyer's loan application to seller
Home Inspection
155. Coordinate buyer's professional home inspection with seller
156. Review home inspector's report
157. Enter completion into transaction management tracking software program
158. Explain seller's responsibilities with respect to loan limits and interpret any clauses in the contract
159. Ensure seller's compliance with "Home Inspection Clause" requirements
160. Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
161. Negotiate payment and oversee completion of all required repairs on seller's behalf, if needed
The Appraisal
162. Schedule appraisal
163. Provide comparable sales used in market pricing to appraiser
164. Follow-up on appraisal
165. Enter completion into transaction management program
166. Assist seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
167. Contract is signed by all parties
168. Coordinate closing process with buyer's agent and lender
169. Update closing forms and files
170. Ensure all parties have all forms and information needed to close the sale
171. Verify time and location of closing
172. Confirm closing date and time - notify all parties
173. Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining death certificates
174. Work with buyer's agent in scheduling and conducting buyer's final walk-thru prior to closing
175. Research all tax, HOA, utility and other applicable prorations
176. Request final closing figures from closing agent (attorney or title company)
177. Receive and carefully review closing figures to ensure accuracy of preparation
178. Forward verified closing figures to buyer's agent
179. Request copy of closing documents from closing agent
180. Confirm buyer and buyer's agent have received title insurance commitment
181. Provide homeowner warranty for availability at closing
182. Review all closing documents carefully for errors
183. Forward closing documents to absentee seller as requested
184. Review documents with closing agent (attorney)
185. Provide earnest money deposit check from escrow account to closing agent
186. Coordinate this closing with seller's next purchase and resolve any timing problems
187. Have a "no surprises" closing so that seller receives a net proceeds check at closing
188. Refer sellers to one of the best agents at their destination, if applicable
189. Change MLS status to Sold. Enter sale date, price, selling broker and agent's ID numbers, etc.
190. Close out listing in transaction management program
Follow Up After Closing
191. Answer questions about filing claims with home-owner warranty company if requested
192. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
193. Respond to any follow-up calls and provide any additional information required from office files
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.
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 to make an intelligent, informed decision to skip it, than to not know the possibility even existed.
A Variety of Choices
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.
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