The Critical Role of the Realtor® in a Transaction

Survey have shown that many homeowners and house buyers 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 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 in jeopardy.

 

This article seeks to help close the gap.

Listed below are 136 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.

 

1. Make an appointment with the seller for the listing presentation
2. Send the seller a written or e-mail confirmation of the listing appointment and call to confirm.
3. Review pre-appointment questions
4. Research all comparable currently listed properties
5. Research sales activity in the area from the MLS® database
6. Research days-on-the-market for similar properties, locations, and price
7. Review property tax roll information
8. Prepare “Comparative Market Analysis” (CMA) to establish fair market value
9. Research property’s ownership and how it is held (deed)
10. Check Municipal tax records for lot size
11. Verify the legal description from public records
12. Check the Planning Department of Municipal Offices for current zoning
13. Check for land use restrictions or special zoning
14. Verify legal names in the Registry Office (or deed)
15. Prepare a listing presentation with researched materials
16. Drive by the property to assess the Curb Appeal, and compare it with the neighborhood
17. Start formal office file on the property
18. Confirm school district and the effect of schools on the property value
19. Determine whether the property is subject to a shoreline road allowance (if applicable)
20. Review all pertinent information to ensure that it’s complete
21. Critical Role of the REALTOR® Page 4 of 7 Listing Appointment Presentation
22. Explain the various agency relationships using the Working With a Realtor® pamphlet and get acknowledgment that this has been reviewed with the seller
23. Give the seller an overview of current market conditions and projections
24. Review sales representative and brokerage credentials and accomplishments.
25. Review and confirm all legal descriptions and ownership details
26. Measure the exterior and establish the square footage above grade
27. Confirm lot size from owner’s survey - if no survey is available, make a note on the listing
28. Note any lot line fencing, easements, and variances
29. Discuss with the seller the possibility of seller takeback (STB) and other options
30. Review any appraisal that may have been made
31. Present CMA to the Seller including Comparable sold properties, Current listings, and Expired listings
32. Offer pricing strategy based on experience and current market conditions
33. Discuss a Marketing Plan to meet the goals of the seller
34. Explain the advantages and power of Multiple Listing Service
35. Explain the use and power of web marketing, IDX, and mls.ca
36. Explain the work both the salesperson and brokerage do behind the scenes and availability at night and on weekends
37. Explain the sales professional’s role in taking calls and screening for qualified buyers and curiosity seekers
38. Present and explain the strategic master marketing plan
39. Review and explain the Listing Agreement and obtain the signature of the seller - give the seller(s) copies.

Once the Property is Listed

1. Measure and record all room dimensions
2. Obtain house plans if available
3. Make a copy of any house plans
4. Copy the survey and retain in the listing file
5. Advise seller of how showing appointments will be made
6. Prepare instructions for salespeople showing the property and confirm with the seller the best times to show to prospective buyers
7. Have Mortgage Verification Forms signed and submitted to mortgagee
8. Verify with the lender any penalties, terms, and current rates and if the mortgage can be discharged
9. Check on whether the existing mortgage can be assumed and under what terms.
10. Confirm any Condominium Fees or Homeowner Association fees currently in effect
11. Get a copy of the Condominium bylaws, if applicable
12. Confirm the  supplier of Hydro or any other provider of this utility
13. Calculate the utility usage for the past 12 months from the seller’s records
14. Verify the availability of any septic bed layout or permits at the time of installation
15. Water – if Municipal check on rates for the past 12 months
16. Well, Water – confirm well status and have Health Unit test so remedial steps can be taken if required. Also, advise of any abandoned wells on the property and put on the listing
17. Determine the natural gas, heating oil, or propane supplier’s name and telephone number
18. Note on listing any rented appliances i.e. hot water tank, furnace, etc.
19. Verify security system- owned, rented, terms, and service terms
20. Ascertain if any lead-based paint, asbestos insulation, UFF,I or other latent defect needs to be disclosed
21. Prepare a list of property features such as pool, sauna, whirlpool, landscape pools and special plants
22. Prepare a list of chattels included or excluded from the sale of the property
23. Compile a list of recent improvements, repairs, or maintenance
24. Send a letter to the Seller if the  property is vacant to advise the  insurance company
25. Explain the advantages of a lock box and have extra keys made
26. Verify if the property has rental units. If so:
27. Arrange for the installation of For Sale sign
28. Assist seller to fill in the Seller Property Information Statement
29. Give the seller a blank copy of the Agreement of Purchase and Sale and discuss it with them
30. Explain the offer presentation process and the possibility of multiple offers
31. Discuss the type of conditions that will likely be included in an offer to purchase
32. Discuss results of the Curb Appeal Assessment, and Interior Décor Assessment and discuss ways to improve appearances for showings.
33. Arrange for Office Tour/MLS® Tour and report comments back to the seller
34. Load listing into a personal database for transaction management

Entering Property in Multiple Listing Service® Database

1. Prepare and check the MLS® data input sheet
2. Upload to Real Estate Board – MLS® Data Input
3. Proofread the listing as it appears in mls.ca
4. Take additional photos for uploading to MLS® and for use in Flyer. Talk to the seller about virtual tour possibilities

Marketing The Listing

1. Create both print and Internet Ads with the seller’s input
2. Coordinate showings with the owner, tenants, and other REALTORS®. Return all calls - weekends included
3. Install lockbox if authorized by the owner
4. Prepare personal mailing and contact list
5. Generate mail merge letters to the contact list
6. Order “Just Listed” cards and handouts
7. Prepare flyers and feedback faxes
8. Constantly review MLS® listings to ensure property remains competitive in price
9. Prepare property marketing brochure for seller’s approval
10. Arrange for printing of approved brochure and distribution
11. Distribute property brochure to all company salespeople
12. Mail out “Just Listed” notices to the immediate neighborhood residents
13. Advise company Network Referral Program of the listing
14. Provide marketing data to buyers coming through international relocation
15. Provide marketing data to buyers coming from referral network
16. Submit ads to the company’s internet site
17. Price changes promptly conveyed to all databases and internet groups
18. Reprint supply of brochures as required
19. Update Mortgage information as available to all marketing facilities
20. Follow-up feedback e-mails and faxes were sent to representatives who have shown the property
21. Discuss feedback from showing representatives with the seller to determine if changes are required to accelerate the sale
22. Place regular weekly update calls to the seller to discuss marketing activity and results
23. Receive and review all Offers to Purchase submitted by buyers and buyers’ representatives
24. Evaluate offer and prepare a “net sheet” on each for owner comparison
25. Counsel owners on each offer – explaining the merits and weaknesses of each
26. Contact the buyer’s representative to discuss the qualifications and motivations of their client
27. Fax/Deliver S.P.I.S. to the buyer’s representative or buyer prior to the offer if possible
28. Confirm that the buyer is qualified by the Mortgage Officer
29. Obtain a pre-qualification letter from the Mortgage Officer
30. Negotiate all offers on the seller’s behalf, setting condition time limits and closing date
31. Prepare and convey all counter offers, acceptance, and/or amendments to the  buyer’s representative
32. Fax copies and mail originals of all documents to the lawyer for the seller
33. When the Offer to Purchase is settled and finalized by the seller, deliver to the buyer’s representative leaving a true copy with the owner
34. Deliver deposit to Trust Account as soon as practicable.
35. Provide a copy of the executed agreement to the office for filing in the deal file
36. Advise and counsel the owner on the handling of offers while the original transaction is pending i.e. days to meet conditions in the first offer and procedures
37. Update personal transaction program indicating Sale Pending
38. Assist the buyer in applying for financing, if applicable
39. Arrange for an appraiser to inspect the property and give any information including comparables, survey copy, etc.
40. If STB – get the Credit Report of the buyer for the seller and review it with him/her
41. Order Septic Tank inspection, if applicable
42. Deliver water test results from the Health Unit to the mortgage company
43. Arrange other inspections as required by the Financial Institution and/or insurance company i.e. mold, termite WETT inspection, etc.

Mortgage Tracking

1. Contact lender regarding mortgage application progress
2. Prepare/obtain waiver or condition removal documents and deliver them to the lawyer for the seller
   Home Inspection
3. Co-ordinate buyer’s professional home inspection
4. Review the inspection report
5. If repairs are required, assist the seller in obtaining a trustworthy contractor to perform the required repairs

The Appraisal

1. Schedule appraisal appointment
2. Provide approach iser with comparables used to set the list price
3. Assist seller in questioning appraisal report if it seems too low

Closing Preparations and Duties

1. Work with the buyer’s representative to arrange any visits prior to closing as agreed in the Agreement of Purchase and Sale
2. Arrange for trust deposit monies, if in excess of the commission due, to be given to the lawyer for the seller
3. Be available for any concerns/questions from the seller
4. Advise MLS® that property is Sold and supply details as to price, date of sale, selling brokerage

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.

 

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” that is fair and equitable.

 

This list is adapted from the list prepared by the Orlando Regional REALTOR® Association.