The
REALTOR®’S Critical Role
in the Real Estate Transaction
Why
Was This List Prepared?
Surveys show that many homeowners
and homebuyers are not aware of the true value
they receive in the services 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 the brokerage staff
and have been traditionally viewed simply
as part of their professional
responsibilities to their client. But, without them, the
transaction could be placed in jeopardy.
This publication seeks to close that
gap.
Listed on the following pages are
nearly 200 typical actions, research steps, processes
and review stages necessary for a
successful residential real estate transaction and
normally provided by a full
service real estate
brokerage and for which they are entitled
to fair compensation.
Completeness
of the List
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 the steps to be
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
that it is not needed, than to not know
the possibility even existed.
The
REALTOR® Commitment
Through it all, the REALTOR®’S personal
and professional commitment is to ensure that
a seller and buyer are brought
together in an agreement that provides each of them a
“win” that
is fair and equitable.
Their motivation is easy to
understand. For most full-service brokerages, there is no
compensation unless and until the sale closes.
By contrast, there are firms that
offer “limited-services” in exchange for either an upfront
flat fee or perhaps offer a menu of
pay-as-you-go or “a la’ carte” services. Some
even offer a sliding scale from limited
to full service. In these cases, the REALTOR®’S
compensation is based on the level of service
they provide. In short, it’s the age-old
market adage that “you get what you pay
for.”
A
Variety of Choices
It can truly be said 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
homeowners choose, before signing a Listing Agreement or
otherwise engaging the services of a REALTOR®
and agreeing to compensate them,
they should understand exactly what
specific services will, or will not, be provided.
Why
Use A REALTOR®?
First, not every real estate agent
or broker is a REALTOR®. That term and the familiar
Block “R” logo are trademarked by
the National Association of REALTORS® and can
only be used by those are REALTOR®
members through their local association of
REALTORS®.
While all REALTORS® are state-issued
licenses as agents 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 not morally
bound to the ethical practices and
principles set for in the REALTOR® Code.
For that extra measure of peace of
mind, ensure the individual seeking to represent you
is both a real estate licensee and a
REALTOR®. Visit the
Association’s
website, orlrealtor.com, for a searchable list of our REALTOR® members.
The
REALTOR®’S Critical Role
in the Transaction
Listed here are the 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 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 CMA 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 Showcase Web Site, IDX 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
all calls to screen for qualified buyers and protect seller from curiosity
seekers
31 Present and discuss strategic
master marketing plan, including Guaranteed Highest Price Program©
32 Explain different agency
relationships and determine seller's preference
33 Review and explain all clauses in
Listing Contract & Addendum and obtain all seller's signatures
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 Obtain or 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 Obtain fax, email address, etc.
and method sellers prefer for
progress reports
78 Order photo shoot for Foto -Tour™
that will appear in Showcase Website
79 Order custom made "See it on
the Internet" sign with Sellers Showcase Website address
80 Order set up of Sellers Showcase
Website dedicated to only their home
81 Create text copy
that will appear in Showcase Website
Entering
Property in Multiple Listing Service Database
81 Prepare MLS Property Profile
Sheet -- Agents is responsible for "quality control" and accuracy of
listing data
82 Enter property data from Profile
Sheet into MLS Listing Database
83 Proofread MLS database listing
for accuracy
84 Check on line MLS listing for
proper placement in mapping function
85 Add property
to company's Active Listings list
86 Add property to other websites
that feature company's listings
87 Provide seller
with signed copies of Listing Agreement and MLS Profile Sheet Data Entry Form
within 48 hours
88 Take additional photos for upload
into MLS and use in flyers and brochures
89 Prepare photo tour computer disks
to be given to prospects at home along with color brochures
90 Pick up and install custom sign
at property
Marketing
The Listing
91 Create print and Internet ads
with seller's input
92 Coordinate
showings with owners, tenants, and other Realtors®.
93 Arrange to have all calls
responded to in expeditious manner - evenings and weekends included
94 Install electronic lock box if
authorized by owner
95 Prepare mailing and contact list
96 Notify brokers and agents on
email and fax permission lists
97 Generate mail-merge letters to
contact list
98 Order “Just Listed” cards &
reports
99 Prepare flyers & feedback
faxes
100 Review comparable MLS listings
regularly to ensure property remains competitive in price, terms, conditions
and availability
101 Prepare property marketing
brochure for seller's review
102 Arrange for printing or copying
of supply of marketing brochures or fliers
103 Place marketing brochures in all
company agent mail boxes
104 Upload listing to company and
agent Internet site, if applicable
105 Mail Out "Just Listed"
notices
106 Advise Network Referral Program
of listing
107 Provide marketing data to buyers
coming through international relocation networks
108 Provide marketing data to buyers
coming from state and national referral networks
109 Provide "Special
Feature" cards for marketing, if applicable
110 Submit ads to company's
participating Internet real estate sites
111Price changes conveyed promptly
to all Internet groups
112 Reprint/supply brochures
promptly as needed
113 Loan information reviewed and
updated in MLS as required
114 Feedback e-mails/faxes sent to
buyers' agents after showings
115 Review weekly Market Study
116 Discuss feedback
from showing agents with seller to determine if changes will accelerate the
sale
117 Place regular weekly update
calls to seller to discuss marketing & pricing
118 Promptly enter price changes in
MLS listing database
The
Offer and Contract
119 Receive and review all Offer to
Purchase contracts submitted by buyers or buyer's agents.
120 Evaluate offer(s) and prepare a
"net sheet" on each for the owner for comparison purposes
121 Counsel seller
on offers. Explain merits and weakness of each component of each offer
122 Explain Counter Offer procedures
and consequences to seller
123 Explain simultaneous multiple
offer protocols and options to seller
124 Contact buyers' agents to review
buyer's qualifications and discuss offer
125 Give all buyers and Buyer's
agents notice and opportunity to improve offers in multiple offer scenario
126 Prepare counter offers and
discuss with sellers
127 Prepare necessary addendums
128 Complete all blank items in
contract that were not completed by Buyer or Buyer's agent
129 Complete and deliver all
required disclosures
130 Fax or deliver Seller's
Disclosure form to buyer's agent or buyer (upon request and prior to offer
being made if possible)
131 Confirm buyer
is pre-qualified by calling Loan Officer
132 Verify whether Loan Officer has
verified credit, income, and debt yet.
133 Obtain pre-qualification or
pre-approval letter on buyer from Loan Officer
134 Negotiate all offers on seller's
behalf, setting time limit for loan approval and closing date
135 Explain to sellers the various
inspection types, limits, escape clauses
136 Convey any counteroffers,
acceptance or amendments to buyer's agent immediately
137 Fax copies of contract and all
addendums to closing attorney or title company
138 When an Offer to Purchase
Contract is accepted and signed by seller, deliver signed offer to buyer's
agent
139 Record and promptly deposit
buyer's earnest money in escrow account.
140 Disseminate "Under-Contract
Showing Restrictions" as seller requests
141 Explain MLS pending contract
regulations
142 Deliver copies of fully signed
Offer to Purchase contract to seller
143 Fax/deliver copies of Offer to
Purchase contract to Selling Agent
144 Fax copies of Offer to Purchase
contract to lender
145 Provide copies of signed Offer
to Purchase contract for office file
146 Advise seller
in handling any additional offers to purchase that may be submitted between
contract and closing
147 Change status
in MLS to "Sale Pending"
148 Update Showcase Website to show
"Sale Pending"
149 Review buyer's credit report
results -- Advise seller of worst and best case scenarios
150 Provide credit report
information to seller if property will be seller-financed
151 Assist buyer
with obtaining financing, if applicable and follow-up as necessary
152 Coordinate with lender on
Discount Points being locked in with dates
153 Deliver unrecorded property
information to buyer
154 Order septic system inspection,
if applicable
155 Receive and review septic system
report and assess any possible impact on sale
156 Deliver copy of septic system
inspection report lender if required & buyer
157 Deliver Well Flow Test Report
copies to lender if required & buyer and property listing file
158 Verify termite inspection ordered, if required
159 Obtain waiver
from buyer in writing of election not to have termite inspection
160 Verify mold inspection ordered,
if required
161 Have mold waiver signed, if
applicable
162 Verify that additional deposits
have been placed in escrow, if contract called for such
Tracking
the Loan Process
163 Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
164 Follow Loan
Processing Through To The Underwriter
165 Add lender and other service vendors
to permanent file so agents, and staff can track progress
166 Contact lender
weekly to ensure processing is on track
167 Relay final approval of buyer's
loan application to seller
Home
Inspection
168 Coordinate buyer's professional
home inspection with seller
169 Discuss whether seller should be
present or agent only
170 Review home inspector's report
with other agent and seller
171 Obtain written request from
buyer as to which items on report they want addressed by seller
172 Explain seller's responsibilities
with respect to loan limits and interpret any clauses in the contract
173 Ensure seller's compliance with
Home Inspection Clause requirements
174 Recommend or assist seller with
identifying and negotiating with trustworthy contractors to
perform any required repairs
175 Negotiate payment and oversee
completion of all required repairs on seller's behalf, if needed
The
Appraisal
176 Schedule Appraisal
177 Provide comparable sales used in
market pricing to Appraiser
178 Follow-Up On
Appraisal
179 Obtain copy of appraisal for
review, if possible
180 Assist seller
in questioning appraisal report if it seems too low
Closing
Preparations and Duties
181 Make sure survey has been
ordered far enough in advance of closing
182 Assist in solving any title
problems (boundary disputes, easements, etc) or in obtaining Death Certificates
183 Work with buyer's agent in
scheduling and conducting buyer's Final Walk-Thru prior to closing
184 Explain what documents will be
signed and delivered at closing
185 Coordinate closing process with
buyer's agent and lender
186 Update closing forms & files
187 Ensure all parties have all
forms and information needed to close the sale
188 Select location
where closing will be held
189 Make sure all parties have
directions and/ or maps to closing location
190 Confirm closing date and time
and notify all parties
191 Research all tax, HOA, utility
and other applicable prorations
192 Request final closing figures
from closing agent (attorney or title company)
193 Receive & carefully review
closing figures to ensure accuracy of preparation
194 Forward verified closing figures
to buyer's agent
195 Request copy
of closing documents from closing agent
196 Confirm buyer
and buyer's agent have received title insurance commitment
197 Make sure seller brings all keys
to closing
198 Make sure seller brings
sufficient identification to closing
199 Make sure buyer knows that
certified funds are required at closing
200 Make sure buyer brings
sufficient identification to closing
201 Explain in advance how some
lenders "fund" loans and determine what the sellers wishes are if
there is a delay in delivering checks due to a funding delay
202 Provide "Home Owners
Warranty" for availability at closing, complete buyer warranty application
203 Transmit buyer
information immediately after closing to Warranty Company
204 Reviews all closing documents
carefully for errors
205 Forward closing documents to
absentee seller as requested
206 Review documents with closing
agent (attorney)
207 Provide earnest money deposit
check from escrow account to closing agent
208 Coordinate this closing with
seller's next purchase and resolve any timing problems
209 Have a "no surprises"
closing and present seller a net proceeds check at closing
210 Refer sellers to one of the best
agents at their destination, if applicable
211 Change MLS listing status to
Sold. Enter sale date and price, selling broker and agent's ID numbers
212 Retrieve all remaining flyers,
lock boxes, signs, etc. from property
213 Close out listing in all
internet locations
214 Explain "homestead
exemption" to buyers and how to obtain
215 Explain loss of homestead
exemption to seller and counsel accordingly if closing is near Jan. 1
Follow
Up After Closing
216 Answer questions about filing
claims with Home Owner Warranty company if requested
217 Attempt to clarify and resolve
any conflicts about repairs if buyer is not satisfied
218 Respond to any follow-on calls
and provide any additional information required from office files.
219 Retain all records a minimum of
5 years
220 Provide, with authorization,
records to accountants, etc.
221 Look forward to receiving
testimonial letter from satisfied clients
Click to return to main navigation page