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What does a Realtor® actually do during the Real Estate Transaction?
The Critical Role of the REALTOR®
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 & deed type
11. Research property's public record information for lot size & dimensions
12. Research property's land use coding and deed restrictions
13. Research property's current use and zoning
14. Verify legal names of owner(s) in county's public property records
15. Prepare listing presentation package with above materials
16. Perform exterior "Curb Appeal Assessment" of subject property
17. Compile and assemble formal file on property
18. Confirm current public schools and explain impact of schools on market value
19. Review listing appointment checklist to ensure all steps and actions have been completed
Listing Appointment Presentation
20. Give seller an overview of current market conditions and projections
21. Review agent's and company's credentials and accomplishments in the market
22. Present company's profile and position or "niche" in the marketplace
23. Present CMA Results To Seller, including Comparables, Solds, Current Listings & Expireds
24. Offer pricing strategy based on professional judgment and interpretation of current market conditions
25. Discuss Goals With Seller To Market Effectively
26. Explain market power and benefits of Multiple Listing Service
27. Explain market power of web marketing, IDX and REALTOR.com
28. Explain the work the brokerage and agent do "behind the scenes" and agent's availability on weekends
29. Explain agent's role in taking calls to screen for qualified buyers and protect seller from curiosity seekers
30. Present and discuss strategic master marketing plan
31. Explain different agency relationships and determine seller's preference
32. Review and explain all clauses in Listing Contract & Addendum and obtain seller's signature
Once Property is Under Listing Agreement
33. Review current title information
34. Measure overall and heated square footage
35. Measure interior room sizes
36. Confirm lot size via owner's copy of certified survey, if available
37. Note any and all unrecorded property lines, agreements, easements
38. Obtain house plans, if applicable and available
39. Review house plans and make copy
40. Order plat map for retention in property's listing file
41. Prepare showing instructions for buyers' agents and agree on showing time window with seller
42. Obtain current mortgage loan(s) information: companies and & loan account numbers
43. Verify current loan information with lender(s)
44. Check assumability of loan(s) and any special requirements
45. Discuss possible buyer financing alternatives and options with seller
46. Review current appraisal if available
47. Identify Home Owner Association manager if applicable
48. Verify Home Owner Association Fees with manager - mandatory or optional and current annual fee
49. Order copy of Homeowner Association bylaws, if applicable
50. Research electricity availability and supplier's name and phone number
51. Calculate average utility usage from last 12 months of bills
52. Research and verify city sewer/septic tank system
53. Water System: Calculate average water fees or rates from last 12 months of bills.
54. Well Water: Confirm well status, depth and output from Well Report
55. Natural Gas: Research/verify availability and supplier's name and phone number
56. Verify security system, current term of service and whether owned or leased
57. Verify if seller has transferable Termite Bond
58. Ascertain need for lead-based paint disclosure
59. Prepare detailed list of property amenities and assess market impact
60. Prepare detailed list of property's "Inclusions & Conveyances with Sale"
61. Compile list of completed repairs and maintenance items
62. Send "Vacancy Checklist" to seller if property is vacant
63. Explain benefits of Home Owner Warranty to seller
64. Assist sellers with completion and submission of Home Owner Warranty Application
65. When received, place Home Owner Warranty in property file for conveyance at time of sale
66. Have extra key made for lockbox
67. Verify if property has rental units involved. And if so:
68. Make copies of all leases for retention in listing file
69. Verify all rents & deposits
70. Inform tenants of listing and discuss how showings will be handled
71. Arrange for installation of yard sign
72. Assist seller with completion of Seller's Disclosure form
73. "New Listing Checklist" Completed
74. Review results of Curb Appeal Assessment with seller and provide suggestions to improve salability
75. Review results of Interior Décor Assessment and suggest changes to shorten time on market
76. Load listing into transaction management software program
Entering Property in Multiple Listing Service Database
77. Prepare MLS 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 Form within 48 hours
82. Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography
Marketing The Listing
83. Create print and Internet ads with seller's input
84. Coordinate showings with owners, tenants, and other Realtors®. Return all calls – weekends included
85. Install electronic lock box if authorized by owner. Program with agreed-upon showing time windows
86. Prepare mailing and contact list
87. Generate mail-merge letters to contact list
88. Order “Just Listed” labels & reports
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, if applicable
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
99. 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
124. Fax copies of Offer to Purchase contract to lender
125. Provide copies of signed Offer to Purchase contract for office file
126. Advise seller in handling additional offers to purchase submitted between contract and closing
127. Change status in MLS to "Sale Pending"
128. Update transaction management program to show "Sale Pending"
129. Review buyer's credit report results -- Advise seller of worst and best case scenarios
130. Provide credit report information to seller if property will be seller-financed
131. Assist buyer with obtaining financing, if applicable and follow-up as necessary
132. Coordinate with lender on Discount Points being locked in with dates
133. Deliver unrecorded property information to buyer
134. Order septic system inspection, if applicable
135. Receive and review septic system report and assess any possible impact on sale
136. Deliver copy of septic system inspection report lender & buyer
137. Deliver Well Flow Test Report copies to lender & buyer and property listing file
138. Verify termite inspection ordered
139. Verify mold inspection ordered, if required
Tracking the Loan Process
140. Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
141. Follow Loan Processing Through To The Underwriter
142. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale
143. Contact lender weekly to ensure processing is on track
144. Relay final approval of buyer's loan application to seller
Home Inspection
145. Coordinate buyer's professional home inspection with seller
146. Review home inspector's report
147. Enter completion into transaction management tracking software program
148. Explain seller's responsibilities with respect to loan limits and interpret any clauses in the contract
149. Ensure seller's compliance with Home Inspection Clause requirements
150. Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
151. Negotiate payment and oversee completion of all required repairs on seller's behalf, if needed
The Appraisal
152. Schedule Appraisal
153. Provide comparable sales used in market pricing to Appraiser
154. Follow-Up On Appraisal
155. Enter completion into transaction management program
156. Assist seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
157. Contract Is Signed By All Parties
158. Coordinate closing process with buyer's agent and lender
159. Update closing forms & files
160. Ensure all parties have all forms and information needed to close the sale
161. Select location where closing will be held
162. Confirm closing date and time and notify all parties
163. Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death Certificates
164. Work with buyer's agent in scheduling and conducting buyer's Final Walk-Thru prior to closing
165. Research all tax, HOA, utility and other applicable prorations
166. Request final closing figures from closing agent (attorney or title company)
167. Receive & carefully review closing figures to ensure accuracy of preparation
168. Forward verified closing figures to buyer's agent
169. Request copy of closing documents from closing agent
170. Confirm buyer and buyer's agent have received title insurance commitment
171. Provide "Home Owners Warranty" for availability at closing
172. Review all closing documents carefully for errors
173. Forward closing documents to absentee seller as requested
174. Review documents with closing agent (attorney)
175. Provide earnest money deposit check from escrow account to closing agent
176. Coordinate this closing with seller's next purchase and resolve any timing problems
177. Have a "no surprises" closing so that seller receives a net proceeds check at closing
178. Refer sellers to one of the best agents at their destination, if applicable
179. Change MLS status to Sold. Enter sale date, price, selling broker and agent's ID numbers, etc.
180. Close out listing in transaction management program
Follow Up After Closing
181. Answer questions about filing claims with Home Owner Warranty company if requested
182. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
183. Respond to any follow-on calls and provide any additional information required from office files.
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.
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