Why Use a Realtor?

First of all not all real estate licensees in Tennessee are REALTORS®. REALTORS® are real estate licensees who have made a professional decision to become members of the National Association of REALTORS ® through the Knoxville Area Association of REALTORS® and adhere to a strict Code of Ethics with Standards of Practice that promote the fair, ethical and honest treatment of all parties in a transaction in addition to the Real Estate Laws of Tennessee. The term REALTOR® and the familiar Block "R" logo are trademarked by the National Association of REALTORS® and can only be used by REALTORS®. REALTORS® improve their professionalism through education and designation programs.

Many homeowners and home-buyers 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

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    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

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    1. Give seller an overview of current market conditions and projections
    2. Review agents 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 web marketing, the MLS IDX program 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 & Addendum and obtain seller's signature
     

  • Once Property is Under Listing Agreement

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    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 & 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 & 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. Load listing into transaction management software program
     

  • Entering Property in the Multiple Listing Service Database

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    1. Prepare MLS Profile Sheet – they are 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
    6. Take additional photos for upload into MLS and use in flyers.
     

  • Marketing The Property

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    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 an MLS electronic lock box if authorized by owner. Program with agreed-upon showing time windows
    4. Prepare mailing and contact list
    5. Generate mail-merge letters to contact list
    6. Prepare flyers & feedback faxes
    7. Review comparable MLS listings regularly to ensure property remains competitive in Price, terms, conditions and availability
    8. Prepare property marketing brochure for seller's review
    9. Arrange for printing or copying of supply of marketing brochures or fliers
    10. Place marketing brochures in all company agent mail boxes
    11. Upload listing to company and agent Internet site
    12. Mail Out "Just Listed" notice to all neighborhood residents
    13. Advise Network Referral Program of listing
    14. Provide marketing data to buyers coming through international relocation networks
    15. Provide marketing data to buyers coming from referral network
    16. Provide "Special Feature" cards for marketing, if applicable
    17. Submit ads to company's participating Internet real estate sites
    18. Price changes conveyed promptly to all Internet groups
    19. Reprint/supply brochures promptly as needed
    20. Loan information reviewed and updated in MLS as required
    21. Feedback e-mails/faxes sent to buyers' agents after showings
    22. Review weekly Market Study
    23. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
    24. Place regular weekly update calls to seller to discuss marketing & pricing
    25. Promptly enter price changes in MLS listing database
     

  • The Offer and Contract

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    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 Offer to Purchase Contract is accepted and signed by seller, deliver 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 transaction management program 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 & buyer
    29. Deliver Well Flow Test Report copies to lender & buyer and property listing file if required
    30. Verify termite inspection ordered
    31. Verify mold inspection ordered, if required
     

  • Tracking the Loan Process

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    1. Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
    2. Follow Loan Processing Through To The Underwriter
    3. Add lender and other vendors to transaction management program 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

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    1. Coordinate buyer's professional home inspection with seller
    2. Review home inspector's report
    3. Enter completion into transaction management tracking software program
    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

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    1. Schedule Appraisal
    2. Provide comparable sales used in market pricing to Appraiser
    3. Follow-Up on Appraisal
    4. Enter completion into transaction management program
    5. Assist seller in questioning appraisal report if it seems too low
     

  • Closing Preparations and Duties

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    1. Contract Is Signed By All Parties
    2. Coordinate closing process with buyer's agent and lender
    3. Update closing forms & 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 & 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 have received title insurance commitment
    15. Provide "Home Owners Warranty" for availability at closing
    16. Review 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 so that seller receives a net proceeds check at closing
    22. Refer sellers to one of the best agents at their destination, if applicable
    23. Change MLS status to Sold. Enter sale date, price, selling broker and agent's ID numbers
    24. Close out listing in transaction management program
     

  • Follow Up After Closing

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    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-on calls and provide any additional information required from office files.