Realtor Value- Florida Real Estate

     REALTOR® Value

If you see the REALTOR® “R,” you know you’re working with a professional who does business by a code of ethics, is highly trained, and is committed to helping you realize the dream of home ownership. 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. Listed in this document 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. 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. 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” thatis fair and equitable.

The 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 compensation of the REALTOR® 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."   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.

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 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 recods
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 agents 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 web marketing, 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, and 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
77            Load listing into transaction management software program

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. 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 mailboxes
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

110          Receive and review all Offer to Purchase contracts submitted by buyers or buyers'
                agents.
                Evaluate offer(s) and area 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 Offer to Purchase Contract is accepted and signed by seller, deliver 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. 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 transaction management program 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 transaction management program 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 transaction management tracking software program
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
152          Follow-Up On Appraisal
153          Enter completion into transaction management program
154          Assist seller in questioning appraisal report if it seems too low
155          Provide comparable sales used in market pricing to Appraiser

Closing Preparations and Duties

156          Contract Is Signed By All Parties. Coordinate closing process with buyer's agent and
                 lender
157          Update closing forms & files
158          Ensure all parties have all forms and information needed to close the sale
159          Select location where closing will be held
160          Confirm closing date and time and notify all parties
161          Assist in solving any title problems (boundary disputes, easements, etc) or in
                 obtaining Death Certificates
162          Work with buyer's agent in scheduling and conducting buyer's Final Walk-Thru prior
                 to closing
163          Research all tax, HOA, utility and other applicable prorations
164          Request final closing figures from closing agent (attorney or title company)
165          Receive & carefully review closing figures to ensure accuracy of preparation
166          Forward verified closing figures to buyer's agent
167          Request copy of closing documents from closing agent
168          Confirm buyer and buyer's agent have received title insurance commitment
169          Provide "Home Owners Warranty" for availability at closing
170          Review all closing documents carefully for errors. Forward closing documents to
                 absentee seller as requested
171          Review documents with closing agent (attorney)
172          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 so that seller receives a net proceeds check at closing
175          Refer sellers to one of the best agents at their destination, if applicable
176          Change MLS status to Sold. Enter sale date, price, selling broker and agent's ID
                 numbers, etc.
177          Close out listing in transaction management program

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.

                Source: Orlando Association of REALTORS®