WHY USE A REALTOR®
First of all not all real
estate licensees in
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 their 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.
REALTORS® routinely
provide a wide variety of services that are as varied as the nature of each
transaction. Some transactions may
not require as many steps to be equally successful. However, most REALTORS® 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.
Through out a transaction,
the personal and professional commitment of the REALTOR® 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 motivation is easy to understand -
for most REALTORS® will receive no compensation unless and until the
transaction 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 compensation of the REALTOR®
is based on these reduced service levels with the seller bearing full
responsibility for all the other steps and procedures in the selling process. A
new Tennessee Law that became effective July 1, 2006 now requires a
“limited services” firm to make sure the seller understands and
agrees fully to the services they will and will not receive. In short, the marketplace truism is that
“you get what you pay for.”
Here are the typical
actions, research steps, processes and review stages necessary for a successful
residential real estate transaction and normally provided by a REALTOR®
for which
they are entitled to fair compensation.
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
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 agents 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 web marketing, the MLS IDX program and 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 & 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
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
77
Load listing into transaction management software program
Entering Property in the Multiple
Listing Service Database
78
Prepare MLS Profile Sheet – they 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 Active Listings list
82
Provide seller with signed copies of Listing Agreement and MLS Profile Sheet
Data Form
83
Take additional photos for upload into MLS and use in flyers.
Marketing The Property
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 an MLS electronic lock box if authorized by owner. Program with
agreed-upon showing time windows
87
Prepare mailing and contact list
88
Generate mail-merge letters to contact list
89
Prepare flyers & feedback faxes
90
Review comparable MLS listings regularly to ensure property remains competitive
in
Price, terms,
conditions and availability
91
Prepare property marketing brochure for seller's review
92
Arrange for printing or copying of supply of marketing brochures or fliers
93
Place marketing brochures in all company agent mail boxes
94
Upload listing to company and agent Internet site
95
Mail Out "Just Listed" notice to all neighborhood residents
96
Advise Network Referral Program of listing
97
Provide marketing data to buyers coming through international relocation
networks
98
Provide marketing data to buyers coming from referral network
90
Provide "Special Feature" cards for marketing, if applicable
100
Submit ads to company's participating Internet real estate sites
101
Price changes conveyed promptly to all Internet groups
102
Reprint/supply brochures promptly as needed
103
Loan information reviewed and updated in MLS as required
104
Feedback e-mails/faxes sent to buyers' agents after showings
105
Review weekly Market Study
106
Discuss feedback from showing agents with seller to determine if changes will
accelerate the sale
107
Place regular weekly update calls to seller to discuss marketing & pricing
108
Promptly enter price changes in MLS listing database
The Offer and Contract
109
Receive and review all Offer to Purchase contracts submitted by buyers or
buyers' agents.
110
Evaluate offer(s) and prepare a "net sheet" on each for the owner for
comparison purposes
111 Counsel seller on offers. Explain merits and
weakness of each component of each offer
112
Contact buyers' agents to review buyer's qualifications and discuss offer
113
Fax/deliver Seller's Disclosure to buyer's agent or buyer upon request and
prior to offer if possible
114
Confirm buyer is pre-qualified by calling Loan Officer
115
Obtain pre-qualification letter on buyer from Loan Officer
116
Negotiate all offers on seller's behalf, setting time limit for loan approval
and closing date
117
Prepare and convey any counteroffers, acceptance or amendments to buyer's agent
118
Fax copies of contract and all addendums to closing attorney or title company
119
When Offer to Purchase Contract is accepted and signed by seller, deliver to
buyer's agent
120
Record and promptly deposit buyer's earnest money in escrow account.
121
Disseminate "Under-Contract Showing Restrictions" as seller requests
122
Deliver copies of fully signed Offer to Purchase contract to seller
123
Fax/deliver copies of Offer to Purchase contract to Selling Agent
133
Fax copies of Offer to Purchase contract to lender
124
Provide copies of signed Offer to Purchase contract for office file
125
Advise seller in handling additional offers to purchase submitted between contract and closing
126
Change status in MLS to "Sale Pending"
127
Update transaction management program to show "Sale Pending"
128
Review buyer's credit report results -- Advise seller of worst and best case
scenarios
129
Provide credit report information to seller if property will be seller-financed
130
Assist buyer with obtaining financing, if applicable
and follow-up as necessary
131
Coordinate with lender on Discount Points being locked in with dates
132
Deliver unrecorded property information to buyer
133
Order septic system inspection, if applicable
134
Receive and review septic system report and assess any possible impact on sale
135
Deliver copy of septic system inspection report lender
& buyer
136
Deliver Well Flow Test Report copies to lender & buyer and property listing
file if required
137
Verify termite inspection ordered
138
Verify mold inspection ordered, if required
Tracking the Loan Process
139
Confirm Verifications Of Deposit & Buyer's Employment
Have Been Returned
140
Follow Loan Processing Through To The Underwriter
141
Add lender and other vendors to transaction management program so agents, buyer
and seller can track progress of sale
142
Contact lender weekly to ensure processing is on track
143
Relay final approval of buyer's loan application to seller
Home Inspection
144
Coordinate buyer's professional home inspection with seller
145
Review home inspector's report
146
Enter completion into transaction management tracking
software program
147
Explain seller's responsibilities with respect to loan limits and interpret any
clauses in
the contract
148
Ensure seller's compliance with Home Inspection Clause requirements
149
Recommend or assist seller with identifying and negotiating with trustworthy
contractors to perform
any
required repairs
150
Negotiate payment and oversee completion of all required repairs on seller's
behalf, if needed
The Appraisal
151
Schedule Appraisal
154
Provide comparable sales used in market pricing to Appraiser
152
Follow-Up on Appraisal
151
Enter completion into transaction management program
153
Assist seller in questioning appraisal report if it
seems too low
Closing Preparations and Duties
154
Contract Is Signed By All Parties
155
Coordinate closing process with buyer's agent and lender
156
Update closing forms & files
157
Ensure all parties have all forms and information needed to close the sale
158
Select location where closing will be held
159
Confirm closing date and time and notify all parties
160
Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death
Certificates
161
Work with buyer's agent in scheduling and conducting buyer's Final Walk-Thru
prior to closing
172
Research all tax, HOA, utility and other applicable prorations
162
Request final closing figures from closing agent (attorney or title company)
163
Receive & carefully review closing figures to ensure accuracy of
preparation
164
Forward verified closing figures to buyer's agent
165
Request copy of closing documents from closing agent
166
Confirm buyer and buyer's agent have received title
insurance commitment
167
Provide "Home Owners Warranty" for availability at closing
168
Review all closing documents carefully for errors
169
Forward closing documents to absentee seller as requested
170
Review documents with closing agent (attorney)
171
Provide earnest money deposit check from escrow account to closing agent
173
Coordinate this closing with seller's next purchase and resolve any timing
problems
174
Have a "no surprises" closing so that seller receives a net proceeds
check at closing
175
Refer sellers to one of the best agents at their destination, if applicable
176
Change MLS status to Sold. Enter sale date, price, selling broker and agent's
ID numbers
177
Close out listing in transaction management program
Follow Up After Closing
178
Answer questions about filing claims with Home Owner Warranty company if requested
179
Attempt to clarify and resolve any conflicts about repairs if buyer is not
satisfied
180
Respond to any follow-on calls and provide any additional information required
from office files.