ARIZONA
REALTY EXPERTS
DAVE & KATHY ERWIN
CRS, E-PRO, GRI, LTG, PMN
602-882-2000
What Does A REALTOR Do For You?
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, knowledge and just plain hard work that go into bringing about a successful transition 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 simply a part of their professional responsibilities to the client. But, without them, the transaction could be placed in jeopardy.
Listed on the following pages are 150 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.
This is by no means and attempt to set forth a comprehensive 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 not to know the possibility even existed.
The REALTORS® 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” that is fair and equitable. The motivation is easy to understand. The REALTOR® receives no compensation unless and until the sale closes.
The critical role of the REALTOR®
Listed here are nearly 200 typical actions, research steps, procedures, processes and review stages in a successful residential real estate transaction.
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 6 to 12 months from MLS and public records databases
Research “Average Days on Market” for a property of this type, price range location and square
footage
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 and deed type
11. Research property’s public record information for lot size and dimensions
12. Research and verify property’s legal description is correct
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. Compile and assemble formal file on property
18. Confirm current public schools and explain impact of schools on market value
19. Review listed appointment checklist to ensure all steps and actions have been completed
Listing Appointment Presentation
20. Give seller an overview of current market conditions and projections
21. Review agent’s credentials and accomplishments in the market
22. Present CMA results to seller, including comparable, solds, currents and expired properties
Offer pricing strategy based on professional judgement and interpretation of current market
conditions
24. Discuss goals with seller to market effectively
25. Explain market power and benefits of Multiple Listing Service (MLS) and REALTOR.com
Explain agent’s commitment and availability, i.e.; on weekends and evenings - to show property or answer questions
Explain agent’s role in taking calls to screen qualified buyers and protect seller from curiosity
seekers
28. Present and discuss strategic master marketing plan
29. Explain different agency relationships and determine seller’s preference
30. Review and explain all clauses in Listing Contracts and Addendum and obtain seller’s signature
After Property is Under Listing agreement
31. Review current title information
32. Measure overall and heated and cooled square footage measure interior room sizes
33. Confirm lot size via owner’s copy of certified survey, if available
34. Note any and all unrecorded property lines, agreements and easements
35. Obtain house plans, if applicable and available
36. Review house plans and make copy for listing file
37. Order plat map for retention in property’s listing file
38. Prepare showing instructions for buyer’s agents and agree on showing time window with seller
39. Obtain current mortgage loan(s) information: companies and loan account numbers
40. Verify current loan information with lender(s)
41. Check assumability of loan(s) and any special requirements
42. Discuss possible buyer financing alternatives and options with seller
43. Review current appraisal, if available
44. Identify Home Owner Association (HOA) manager, if applicable
45. Verify HOA fees with manager - mandatory or optional and annual fee
46. Order copy of HOA Bylaws, if applicable
47. Research electricity availability and supplier’s name and phone number
48. Calculate average utility usage from last 12 months of bills
49. Research and verify city sewer/septic tank system
50. Calculate average water usage and fees or rates from last 12 months of bills
51. Confirm well status, if applicable - depth and output from Well Report
52. Research/verify Natural Gas availability ad supplier’s name and phone number
Verify security system, current terms of service and whether owned or leased. Verify if seller has transferable Termite Bond
54. Ascertain need for lead-based paint disclosure
55. Prepare detailed list of property amenities and assess market impact
56. Send a Vacancy Checklist to the seller if property is vacant
57. Explain benefits of Home Owner Warranty to seller
58. Assist seller with completion and submission of Home Owner Warranty application
59. When received, place a copy of the Home Owner Warranty in property file for time of sale
Have extra keys made for lockbox
Verify if property has rental units involved. And, if so: Make copies of lease for file; Verify all rents and deposits; Inform tenants of listing and inform them of how showings will be handled
62. Arrange for installation of yard sign
63. Assist seller with completion of Seller’s Disclosure Form
64. New Listing Checklist Completed
65. Review results of Curb Appeal Assessment with seller and suggest ways to improve salability
66. Review results of Interior Décor Assessment with seller and suggest ways to improve salability
67. Load listing into transaction management software program
Enter Property in Multiple Listing Service Database
68. Prepare MLS Profile Sheet - Enter into MLS Listing Database
69. Proofread MLS listing for accuracy
70. Add property to agents Active Listing roster
71. Provide seller with copies of Listing Agreement and MLS Profile Sheet. Have seller verify accuracy
72. Take additional photos for MLS Listing and flyers - Discuss Virtual Tour, if applicable
Marketing the Listing
73. Create internet and print ads
74. Coordinate showings with sellers, tenants (if applicable) and other Realtors. Return all calls promptly - even on weekends
75. Install electronic lockbox, if authorized by seller
76. Prepare Flyers and install holders on Yard Signs
Review comparable MLS listings regularly to ensure property remains competitive in price and
terms
78. Review and update loan information in MLS listing as required
79. Discuss feedback from showing agents with seller to determine changes that will accelerate the sale
80. Make weekly update all to seller to discuss remaining competitive in the market
81. List any selling price changes in MLS database
The Offer and Contracts
Receive and review all offers of purchase contracts submitted by prospective buyers’ or their
agents
83. Evaluate offer(s) and prepare net sheet on each for the seller for comparison purposes
84. Counsel seller on offer(s). Explain merits and weaknesses of each
85. Contact prospective buyers’ agent to review buyer’s qualifications and to discuss offer
86. Present buyer’s agent with Seller’s Disclosure
87. Confirm buyer is pre-qualified by calling loan officer
88. Negotiate all offers on seller’s behalf, setting time limits for loan approval and closing date
89. Prepare and convey any counteroffers , acceptance or amendments to buyer’s agent
90. Present copies of contract and all addendums to title company
91. Deliver Purchase Contract to buyer’s agent, when signed by seller
92. Record and promptly deposit buyer’s earnest money in escrow account
93. Deliver copies of fully signed Offer of Purchase contract to seller
95. Deliver copies of fully signed Offer of Purchase contract to buyer’s agent
96. Deliver copies of fully signed Offer of Purchase contract to lender
97. Place copies of fully signed Offer of Purchase contract in property file
98. Change status in MLS database to “Sale Pending”
99. Review buyer’s credit report results and advise seller of possible scenarios
100. Assist buyer with financing, if applicable and follow up as necessary
101. Coordinate with lender on Discount Points being locked in with dates
102. Deliver unrecorded property information to buyer
103. Deliver Well Flow Report to lender and buyer, if applicable
104. Verify termite inspection ordered
105. Verify mold inspection ordered, if required
Tracking the Loan Process
106. Confirm verification of deposit and buyer’s employment, have been returned
107. Follow loan processing through to the underwriter
108. Contact lender weekly to ensure process is on track
Relay final approval of buyer’s loan application to seller
Home Inspection
110. Coordinate buyer’s professional home inspection with seller
111. Review home inspector’s report
112. Explain seller’s responsibilities with respect to loan limits and interpret any clauses in the contract
113. Ensure seller’s compliance with Home Inspection Clause requirements
114. Recommend or assist seller with selection of contractors to perform and required repairs
115. Negotiate payment and oversee completion of all required repairs on sellers behalf, if needed
The Appraisal
116. Schedule appraisal
117. Provide comparable sales used in market pricing to appraiser
118. Follow-up on appraisal
119. Assist seller in questioning appraisal report if it seems out of line
Closing Preparations and Duties
120. Contract is signed by all parties
121. Coordinate closing process with buyer’s agent and lender
122. Update closing form and files
123. Ensure all parties have all forms and information needed to close the sale
124. Select location where closing will be held
125. Confirm closing date and time. Notify all parties
126. Assist in solving any title problems
127. Work with buyer’s agent in scheduling and conducting buyer’s final walk-through prior to closing
128. Research all tax, HOA, utility and other applicable prorations
129. Request final closing figures from closing agent (attorney or title company)
130. Review final closing figures for accuracy
131. Give verified closing figures to buyer’s agent
132. Request copy of closing documents from closing agent
133. Confirm buyer and buyer’s agent have received title insurance commitment
134. Provide Home Owners Warranty for availability at closing
135. Review all closing documents for errors
136. Forward closing documents to absentee seller, if applicable
137. Review documents with closing agent
138. Provide earnest money deposit check for escrow account to closing agent
139. Coordinate this closing with seller’s next purchase
140. Insure a “no surprises” closing so that seller receives a net proceeds check at closing
141. Refer sellers to a top agent at their destination, or start looking for their new home with them
142. Change MLS status to “SOLD” Enter sale date, price, selling broker and agent’s ID numbers, etc.
143. Close property folder and file
Follow Up after Closing
144. Answer questions about filing claims with Home Owner Warranty company, if needed
145. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
Respond to any follow-up calls and provide additional information requested from property folder files
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