Realtors Role - Rich & Karen Ayers

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 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 traditionally have been viewed simply as part of their professional responsibilities to the 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.

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 REALTOR^®´S personal and professional commitment 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 REALTOR^®´S 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 "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 REALTOR^®´S compensation is based on these reduced service levels with the 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.

But no matter which option is chosen, before signing a Listing Agreement or otherwise engaging the services of a REALTOR^® and agreeing to compensate them, homeowners should understand exactly what services will, or will not, be provided.

Why Use A REALTOR^®?

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^®.

The REALTOR^®´s Critical Role

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. That is 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 and HomeTrack™ information
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 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 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 Sale"
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 Staging Assessment and suggest changes to shorten time on market
77	Assign ConnectMLS login and password for sellers to check progress

	Entering Property in Multiple Listing Service Database
78	Prepare MLS Profile Sheet -- Agents is 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 within 48 hours
83	Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography

	Marketing The Listing
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 electronic lock box if authorized by owner and program with agreed-upon showing time windows
87	Prepare mailing and contact list
88	Generate mail-merge letters to contact list
89	Order "Just Listed" labels & reports
90	Prepare flyers & feedback faxes
91	Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability
92	Prepare property marketing brochure for seller's review
93	Arrange for printing or copying of supply of marketing brochures or fliers
94	Place marketing brochures in all company agent mail boxes
95	Upload listing to company and agent Internet site, if applicable
96	Mail Out "Just Listed" notice to all neighborhood residents
97	Advise Network Referral Program of listing
98	Provide marketing data to buyers coming through international relocation networks
99	Provide marketing data to buyers coming from referral network
100	Provide "Special Feature" cards for marketing, if applicable
101	Submit ads to company's participating Internet real estate sites
102	Price changes conveyed promptly to all Internet groups
103	Reprint/supply brochures promptly as needed
104	Loan information reviewed and updated in MLS as required
105	Feedback e-mails/faxes sent to buyers' agents after showings
106	Review weekly Market Study
107	Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
108	Place regular weekly update calls to seller to discuss marketing & pricing
109	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 an Offer to Purchase Contract is accepted and signed by seller, deliver signed offer 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 ConnectMLS 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
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 ConnectMLS 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 ConnectMLS
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 ConnectMLS
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	Reviews 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 and present seller a net proceeds check at closing
175	Refer sellers to one of the best agents at their destination, if applicable
176	Change MLS listing status to Sold. Enter sale date and price, selling broker and agent's ID numbers, etc.
177	Close out listing in ConnectMLS

	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.

This information has been re-printed (with minor modifications due to regional differences) with the express permission of the Orlando Regional Realtor^® Association. They can be contacted at http://www.orlrealtor.com .

The Realtor's Critical Role in the Real Estate Transaction

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