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Seller Representation Services
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 up-front 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 Orlando Regional REALTOR® Association’s website, orlrealtor.com, for a searchable list of our REALTOR® members.
Wp/stratplan/valueofarealtor.doc
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 and fully skilled 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 REALTOR.com
29 Explain the work the brokerage and agent do "behind the scenes"
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
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 Décor Assessment and suggest changes
to shorten time on market
Entering Property in Multiple Listing Service Database
77 Prepare MLS Property Profile Sheet -- Agent is responsible for "quality control" and
accuracy of listing data- there are over 100 items on the profile form to proofread!
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
Entry Form.
82 Take additional photos for upload into MLS and use in flyers.
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.
85 Install electronic lock box if authorized by owner.
86 Prepare flyers
87 Review comparable MLS listings regularly to ensure property remains
competitive in price, terms, conditions and availability
88 Prepare property marketing brochure for seller's review
89 Arrange for printing or copying of supply of marketing brochures or fliers
90 Place marketing brochures on display in home.
91 Upload listing to company and agent Internet site, if applicable
92 Provide marketing data to buyers coming through
international relocation networks
93 Provide marketing data to buyers coming from referral network
94 Provide "Special Feature" cards for marketing, if applicable
95 Submit ads to company's participating Internet real estate sites
96 Price changes conveyed promptly to MLS
97 Reprint/supply brochures promptly as needed
98 Loan information reviewed and updated in MLS as required
99 Feedback calls to buyers' agents after showings
100 Prepare weekly communication log to seller
101 Discuss feedback from showing agents with seller to determine
if changes will accelerate the sale
102 Place calls to seller to discuss marketing & pricing as appropriate
103 Promptly enter price changes in MLS listing database
The Offer and Contract
104 Receive and review all Offer to Purchase contracts submitted by
buyers or buyer's agents.
105 Evaluate offer(s) and prepare a "net sheet" on each for the owner
for comparison purposes
106 Counsel seller on offers. Explain merits and weakness of each component of each offer
107 Contact buyers' agents to review buyer's qualifications and discuss offer
108 Fax or deliver Seller's Disclosure form to buyer's agent or buyer (upon request
and prior to offer being made if possible)
109 Confirm buyer is pre-qualified by calling Loan Officer
110 Obtain pre-qualification letter on buyer from Loan Officer
111 Negotiate all offers on seller's behalf, setting time limit
for loan approval and closing date
112 Prepare and convey any counteroffers, acceptance or amendments to buyer's agent
113 Fax copies of contract and all addendum’s to closing attorney or title company
114 When an Offer to Purchase Contract is accepted and signed by seller,
deliver signed offer to buyer's agent
115 Record and promptly deposit buyer's earnest money in escrow account.
116 Disseminate "Under-Contract Showing Restrictions" as seller requests
117 Deliver copies of fully signed Offer to Purchase contract to seller
118 Fax/deliver copies of Offer to Purchase contract to Selling Agent
119 Fax copies of Offer to Purchase contract to lender
120 Provide copies of signed Offer to Purchase contract for office file
121 Advise seller in handling any additional offers to purchase that may be
submitted between contract and closing
122 Change status in MLS to "Sale Pending"
123 Review buyer's credit report results -- Advise seller of worst and best case scenarios
124 Provide credit report information to seller if property will be seller-financed
125 Assist buyer with obtaining financing, if applicable and follow-up as necessary
126 Coordinate with lender on Discount Points being locked in with dates
127 Deliver unrecorded property information to buyer
128 Order septic system inspection, if applicable
129 Receive and review septic system report and assess any possible impact on sale
130 Deliver copy of septic system inspection report lender & buyer
131 Deliver Well Flow Test Report copies to lender & buyer and property listing file
132 Verify termite inspection ordered
133 Verify mold inspection ordered, if required
Tracking the Loan Process
134 Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
135 Follow Loan Processing Through To The Underwriter
136 Contact lender weekly to ensure processing is on track
137 Relay final approval of buyer's loan application to seller
Home Inspection
138 Coordinate buyer's professional home inspection with seller
139 Review home inspector's report
140 Explain seller's responsibilities with respect to loan limits
and interpret any clauses in the contract
141 Ensure seller's compliance with Home Inspection Clause requirements
142 Assist seller with identifying contractors to perform any required repairs
The Appraisal
143 Schedule Appraisal if not already completed
144 Provide comparable sales used in market pricing to Appraiser
145 Follow-Up On Appraisal
Closing Preparations and Duties
146 Verify contract Is Signed By All Parties
147 Coordinate closing process with buyer's agent and lender
148 Update closing forms & files
149 Ensure all parties have all forms and information needed to close the sale
150 Select location where closing will be held
151 Confirm closing date and time and notify all parties
152 Assist in solving any title problems (boundary disputes, easements, etc)
or in obtaining Death Certificates
153 Work with buyer's agent in scheduling and conducting buyer's
Final Walk-Thru prior to closing
154 Research all tax, HOA, utility and other applicable prorations
155 Request final closing figures from closing agent (attorney or title company)
156 Receive & carefully review closing figures to ensure accuracy of preparation
157 Forward verified closing figures to buyer's agent
158 Request copy of closing documents from closing agent
159 Confirm buyer and buyer's agent have received title insurance commitment
160 Provide "Home Owners Warranty" for availability at closing
161 Review all closing documents carefully for errors
162 Forward closing documents to absentee seller as requested
163 Review documents with closing agent (attorney)
164 Provide earnest money deposit check from escrow account to closing agent
165 Coordinate this closing with seller's next purchase and resolve any timing problems
166 Have a "no surprises" closing and present seller a net proceeds check at closing
167 Refer sellers to one of the best agents at their destination, if applicable
168 Change MLS listing status to Sold. Enter sale date and price,
selling broker and agent's ID numbers, etc.
Follow Up After Closing
169 Answer questions about filing claims with Home Owner Warranty company if requested
170 Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
171 Respond to any follow-on calls and provide any additional information required from office files.
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