THE REALTOR®

The Critical Role of a Licensed Real Estate Agent in Successful Transactions.

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 performed behind the scenes by either the REALTOR® or the brokerage staff have been traditionally viewed as part of their professional responsibilities to the client or customer. These actions are usually the extra work that hold transactions together to the benefit of everyone involved.

A FULL SERVICE real estate brokerage performs the more than 200 actions listed below to accomplish a successful real estate transaction 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 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-win” that is fair and equitable.

The 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 sellers “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 unlicensed 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

The variety of brokerage business models in today’s real estate industry affords the homeowner a greater range of options than ever before.

No matter which option is chosen, homeowners should understand exactly what services will or will not be provided before signing a listing agreement or otherwise engaging the services of a REALTOR® and agreeing to compensate them.  See more important information at http://www.volusiapropertyshowcase.com/theMHsystem.

Why use a REALTOR®?  

Not every real estate agent or broker is a REALTOR®. That term and the familiar block “R” logo are trademarks of the National Association of REALTORS® and can only be used by those who are members through their local and state association of REALTORS®.

While all REALTORS® are state-licensed as associates 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 neither morally bound nor financially accountable to the ethical practices and principles set forth in the REALTOR® code.

For that extra measure of peace of mind, homeowners should ensure that they are being represented by a salesperson who is a real estate licensee and a REALTOR®.

The Critical Role of a REALTOR®

Pre-Listing Activities

1 Make appointment with seller for listing presentation

2 Send seller a written or e-mail confirmation and call to confirm

3 Review pre-appointment questions

4 Review all comparable currently listed properties

5 Research recent sales activity from MLS and public records (FSBOs)

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 “CMA” Competitive Market Analysis to establish fair market value

9 Obtain copy of subdivision plat/complex layout

10 Research property’s ownership and deed type

11 Research property’s public record information including 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 public records

16 Prepare listing presentation package with above materials

17 Take exterior photo of subject property if applicable

18 Perform exterior “Curb Appeal Assessment” of subject property

19 Perform Interior Decorations Assessment of subject property

20 Compile and assemble formal file on property

21 Confirm current public schools and explain impact of schools on market value

22 Review listing appointment checklist to ensure all steps and actions are completed

Listing Appointment Presentation

23 Give seller an overview of current market conditions and projections

24 Review agent’s and company’s credentials and accomplishments in the market

25 Present company’s profile and position in marketplace

26 Present CMA results to seller including comparable sold, listed, and pending properties

27 Offer pricing strategy based on professional judgment and interpretation of market

28 Discuss goals with seller to market effectively

29 Explain market power and benefits of the MLS or multiple Listing service

30 Explain market power of internet marketing, IDX and Realtor.com

31 Explain the work the brokerage and agent do “behind the scenes” and availability

32 Explain agent’s role in taking calls to qualify and screen buyers to protect seller

33 Present and discuss strategic marketing plan

34 Explain different agency relationships and determine seller’s preference

35 Evaluate sellers home for positive and negative attributes for value

36 Review and explain all clauses in Listing contract and addenda and obtain signature

Once Property is Under Listing Agreement

37 Review current title information

38 Measure overall and heated square footage

39 Measure interior room sizes

40 Confirm lot size via owner’s certified survey if available

41 Note any and all unrecorded property lines, encroachments and easements

42 Obtain House plans, if applicable and available

43 Review house plans and make copies

44 Order plat map for retention in property’s listing file

45 Prepare showing instructions for buyers agents and agree on showing time windows

46 Obtain current mortgage loan(s) information

47 Verify current loan information with lenders

48 Check assumability of loan(s) and other requirements

49 Discuss possible buyer financing options with seller

50 Review current appraisal if available

51 Identify Home Owner Association manager and contact information

52 Verify HOA Fees with manager-mandatory or optional and current assessments

53 Order copy of Homeowner Association Bylaws, if applicable

54 Research electricity available and suppliers name and phone number

55 Calculate average utility usage from last twelve months of bills

56 Research and verify city sewer/septic tank system

57 Water system: Calculate average water fees or rates from last twelve months

58 Well Water: Confirm well status, depth and output from well report

59 Natural Gas: Research/verify availability and suppliers name and phone number

60 Verify security system, leased or owned and current terms of service

61 Verify if seller has transferable termite bond on home

62 Ascertain need for Lead Based Paint Disclosure

63 Prepare detailed list of property amenities and assess market impact

64 Prepare detailed list of property’s “Inclusions and Conveyances with Sale”

65 Compile list of completed repairs and maintenance items

66 Send vacancy checklist to seller if property is vacant

67 Explain benefits of Home Warranty to seller

68 Assist sellers with completion and submission of Home Warranty application

69 When received, place Home Warranty in property file for conveyance at closing

70 Have extra key copy made for lock box

71 Verify if property has rental units involved. And if so:

72 –Make copies of all leases for retention in listing file or sellers affidavit

73 –Verify all rents and deposits

74 –Inform tenants of listing and discuss how showings will be handled

75 Arrange for installation of Yard Sign

76 Have seller complete a seller’s Disclosure Form

77 New Listing Checklist completed

78 Review results of Curb Appeal Assessment and suggest improvements

79 Review results of Interior Decorations Assessment and suggest improvements

80 Load listing into transaction management software programs

81 Provide seller with signed copies of Listing agreement and other necessary documents

82 Install electronic lock box if authorized by owner

83 Retrieve current information updates on changes in HOA fees or assessments

84 Maintain current information on the community as it changes

Entering Property in Multiple Listing Service Database

85 Prepare MLS Profile sheet-agent is responsible for “quality control” and accuracy

86 Enter property data from Profile sheet into MLS Database

87 Proofread MLS Database listing for accuracy-including proper placement in mapping

88 Add property to company’s Database of active listings

89 Take additional photos for upload into MLS and use in flyers

90 Discuss efficacy of panoramic photography and virtual tours

Marketing the Listing

91 Create print ads and internet ads with sellers input

92 Coordinate showings with owners, tenants and other Realtors®

93 Return all calls in a timely manner, weekends included

94 Prepare mailing list for targeted marketing

95 Generate mail-merge letters for contact list

96 Order “Just Listed” labels and reports

97 Prepare flyers and feedback forms

98 Schedule and conduct office preview/tour/caravan

99 Review comparable MLS listings regularly to ensure property remains competitive

100 Prepare property marketing brochure for seller’s review

101 Arrange for printing or copying of supply of marketing brochures and flyers

102 Place marketing brochures in all company agent mailboxes

103 Schedule and conduct Brokers Open Houses for associates and affiliates

104 Schedule and conduct public Open House(s)

105 Upload listing to company internet site

106 Upload listing to agents personal website and affiliate sites

107 Verify accuracy of information on Realtor.com and other affiliated sites

108 Enhance/showcase listings on Realtor.com

109 Mail out “Just Listed” notice to all neighboring residents

110 Promote at weekly Office Meeting

111 Promote at monthly Board Meetings

112 Advise network Referral Program of listing

113 Provide marketing data to buyers coming through international relocation networks

114 Provide marketing data to buyers coming from referral network

115 Provide “Special Features” cards for marketing, if applicable

116 Submit ads to company’s participating internet real estate sites

117 Price changes conveyed promptly to all internet groups

118 Reprint/supply brochures regularly and promptly as needed

119 Loan information reviewed and updated in MLS as required

120 Feedback emails/faxes sent to buyers’ agents after showings

121 Review weekly or monthly Market study

122 Discuss feedback from showing agents with seller and make recommendations

123 Make regular update calls to seller to discuss market and pricing adjustments

124 Promptly enter price changes in MLS database and office computers

The Offer and Contract

125 Receive and review ALL Offer to Purchase Contracts submitted by buyers or agents

126 Evaluate offer(s) and prepare a “Net proceeds sheet” for review

127 Counsel seller on offers. Explain merits and weakness of each component

128 Contact buyer/buyer’s agent to discuss buyer qualification and discuss offer

129 Fax/deliver seller’s disclosure statement to buyer/agent upon request

130 Confirm buyer is pre-approved by calling loan officer

131 Obtain pre-qualification/preapproval letter on buyer from agent or loan officer

132 Negotiate all offers, setting time limits for loan approval and closing dates

133 Prepare and convey any counteroffers, acceptance or addenda to buyer/agent

134 Fax copies of contract and addenda to title company or closing attorney

135 When offer is accepted, and signed by seller, deliver to buyer/agent

136 Record and promptly deposit buyer’s earnest money in appropriate account

137 Disseminate “Pending Showing Restrictions/instructions” as seller requests

138 Deliver copies of fully executed contract to seller

139 Fax/deliver copies of fully executed contract to buyer/selling agent

140 Fax/deliver copies of fully executed contract to loan officer/lender

141 Provide copies of signed contract for office file

142 Advise seller in handling additional offers between contract and closing

143 Change status in MLS to “pending sale”

144 Update transaction management program with new status

145 Provide credit report information to seller if property will be seller financed

146 Review buyer’s credit report results-advise seller of best and worse case scenarios

147 Assist buyer with obtaining financing, if applicable and follow-up as necessary

148 Coordinate with lender on discount points being locked in with dates

149 Deliver unrecorded property information to buyer

150 Order septic system inspection, if applicable

151 Receive and review septic system report and assess any impact on sale

152 Deliver, if required, copies of septic system report to buyer and lender

153 Order well-flow test Report, if applicable

154 Deliver well-flow test report copies to buyer, lender and property listing file

155 Order Wood Destroying Organism Report, if applicable

156 Deliver WDO Report copies to buyer, lender and file as required

157 Order Home Inspection, if applicable

158 Deliver Home Inspection Report copies to buyer and others as necessary

159 Order Mold Inspection, if required

160 Verify mold inspection results delivered to appropriate parties

Home Inspections

161 Coordinate buyer’s professional home inspection with seller

162 Review home inspection report

163 Enter completion into transaction management software

164 Explain seller’s responsibilities/interpret contract with respect to repair limits

165 Ensure seller’s compliance home inspection clause requirements

166 Recommend or assist seller in obtaining trustworthy contractors for repairs

167 Negotiate payment and oversee completion of all required repairs for seller, as needed

The Appraisal

168 Schedule appraisal

169 Be present for appraisal at home

170 Provide comparable sales used in market pricing for appraiser

171 Follow-up on appraisal

172 Enter completion into transaction management software

173 Assist seller in questioning appraisal report if is too low

174 Coordinate with buyer/agent and seller if discrepancy exists between price and appraisal

Tracking the Loan Process

175 Ensure buyer has made application by date specified

176 Confirm verification of deposit & buyers employment have been returned

177 Follow-up on loan processing through to underwriter

178 Add lender and other vendors to transaction management software for better tracking

179 Contact lender weekly/daily to ensure processing/underwriting is on track

180 Request final loan approval in writing from buyer/agent by specified date

181 Fax/deliver final loan approval for buyer to seller

Closing Preparations and Duties

182 Verify contract is signed and initialed by all parties in correct places

183 Coordinate closing process with buyer/agent, loan officer, lender and closing agent

184 Update closing forms and files as needed

185 Ensure all parties have all forms and information needed to close the sale

186 Select location where closing will be held

187 Confirm closing date and time and notify all parties

188 Assist in solving any title problems (boundary disputes, easements, etc)

189 Work with buyer/agent in scheduling a “final walk-through” prior to closing

190 Research all tax, HOA, utility and other applicable prorations

191 Request final closing figures from closing agent

192 Carefully review closing figures to ensure accuracy and “no last minute” items

193 Forward verified closing figures to buyer/agent and seller

194 Request copy of closing documents from closing agent

195 Ensure Title Insurance Commitment has been received by buyer/agent

196 Provide Home Warranty paperwork, if applicable, at closing

197 Review all closing documents carefully for errors

198 Forward all documents to absentee sellers as requested

199 Review all documents with closing agent

200 Provide earnest money deposit check from escrow account to closing agent

201 Coordinate this closing with seller’s next purchase and resolve timing problems

202 Double-check everything for a “no surprises” closing

203 Refer seller to one of the best agents at their next destination, if applicable

204 Provide information on relocation assistance packages and companies involved

Follow Up After Closing

205 Change MLS status to “sold”. Enter sale date, price, selling broker and agents’ ID #s, etc.

206 Close out listing in transaction management software

207 Close out file and turn in for storage/archiving

208 Answer any questions about the Home Warranty company and filing claims

209 Resolve any conflicts about repairs if buyer is not satisfied

210 Respond to any follow-on calls and provide any additional information required from file