Real Estate Tips: The Value Your Realtor Brings

With the latest N.A.R. settlement, Realtors have been given the opportunity to share with their clients all of the tremendous value they offer with their services. For a high level overview, take a look at the below resource list created by the National Association of Realtors, which outlines ways in which a Realtor earns their compensation ten fold.

Working with Buyers

Building a Relationship

1 Inform the buyer of working relationship options based on state law, the REALTOR® Code of Ethics, MLS requirements and the broker’s business policies

2 Learn buyer’s wants and non-negotiable needs

3 Understand buyer’s budget and financial concerns

4 Provide quality lender resources

5 Match buyer’s needs with available property

6 Explain how compensation is paid, who pays it and what buyer’s options are

7 Explain federal and state fair housing laws

8 Explain what to look for in applicable property disclosures

9 Inform buyer that you will always disclose all known material defects

10 After ensuring buyer understands what is done for them, how it is done, and the benefit to them, obtain signatures on the buyer representation agreement

11 Reassure buyer that personal information will remain confidential

12 In accordance with state law, provide information on checking the sex-offender registry and crime statistics for the neighborhood

13 Educate buyer about executing a buyer representation agreement

14 Reiterate working relationship based on state law, the REALTOR® Code of Ethics, and the broker’s business policies

15 Discuss available resources that buyer can check to learn more about prospective neighborhoods

Preparing the Buyer

16 Explain timeline for house hunting, mortgage approval and closing

17 Explain local market and how it impacts the buyer

18 Show statistics on what percentage of list price sellers in the area are currently receiving

19 Inform buyer of what home features are popular

20 Identify current average days on market

21 Share dangers of using price-per-square-foot to determine home values

22 Explain the concept of absorption rate and how it impacts the buying process

23 Indicate current listing months of market inventory

24 Share estimated potential out-of-pocket costs to complete the transaction

25 Assist buyer in analyzing the loan estimates

26 Verify buyer’s ability to purchase by ensuring they’ve prequalified

27 Help buyer account for the complete costs of homeownership

28 Prepare lender for listing agent calls

29 Help buyer select for viewing only those homes that fit their needs

30 Review sample sales contract so buyer is prepared when it comes time to make an offer

Showing Properties

31 Schedule showings and provide access to all MLS-listed properties

32 Educate buyer on the immediacy of new listings appear in MLS and the lag time for them to appear on some websites

33 Collaborate with buyer on properties they may have learned about through their sphere of contacts

34 Research and assist on all unlisted properties the buyer wishes to see

35 Preview properties prior to showing if needed

36 Network with other agents to source properties not yet in MLS

37 Contact homeowners in focus areas to see if they are considering selling

38 Set up automated email alert system through MLS that notifies buyer of potential properties

39 Arrange tour of targeted market areas

40 Provide resources containing neighborhood information on municipal services, schools and other local services

41 Inform buyer of aspects such as nearby venues or operations that may result in issues that could impact value

42 Check applicable zoning and building restrictions

43 Help buyer decipher public property and tax information

44 Collect and share pertinent data on values, taxes, utility costs and other carrying costs

45 Help buyer identify top choices

Negotiating Offers

46 Prepare buyer to have the most attractive offer in the current marketplace

47 Prepare a comparative market analysis in advance of making an offer

48 Use hyperlocal expertise and strong communication skills to help bring the most successful offer

49 Explain common contract contingencies, and include approved protective clauses in the purchase offer

50 Ensure buyer receives and understands all state- and federally required disclosure forms

51 Prioritize contract negotiation goals with buyer

52 Prepare buyer for multiple-offer situation

53 Write offer that has a reasonable chance of being accepted

54 When approved by buyer, use strategies such as an escalation clause to maintain a competitive offer

55 Recommend optional contingencies and explain the pros and cons of using them

56 Negotiate buyer’s offers to arrive at the best price and terms

Facilitating Close

57 Provide options for home inspector, title company, appraiser and mortgage lender

58 Review and discuss home inspection concerns, and negotiate repair requests

59 Guide buyer on meeting all contract deadlines

60 Advise buyer to review the settlement statement

61 Inform buyer of need to transfer utilities to the new residence

62 Schedule final walkthrough and accompany buyer

63 Ensure appraisal has been ordered and notify buyer of date

64 Assist buyer in reviewing appraisal report

65 If appraisal report affects financing, discuss the possibility of requesting a reconsideration of value

66 Confirm clear-to-close with lender

67 Ensure all parties have all forms and information needed to close the sale

68 Confirm the closing location, date and time

69 Explain flood and title insurance to buyer

70 Order any surveys needed

71 Order title search

72 Confirm status of loan funding

73 Check addendums and alterations for agreed terms

74 Review buyer’s closing statement to ensure accuracy

75 Explain wire fraud risks and remind clients to verify all wiring instructions before transferring funds

76 Double-check property tax, homeowner association dues, utility and applicable prorations, if relevant

77 Request final closing figures from closing agent

78 Carefully review closing figures to ensure accuracy

79 Receive and carefully review title insurance commitment with buyer

80 Advise buyer on re-keying locks or installing smart locks

81 Help buyer consider a one-time cleaning service or landscaping before moving day

82 Review documents with closing agent

83 Support buyer in final closing activities

Working With Sellers

Pre-Listing

1 Confirm prospective seller’s needs and make appointment for a listing presentation

2 Research comparable properties

3 Research sales activity from MLS and public records data

4 Research average days on market for property of this type, price range and location

5 Download and review property tax roll/assessor info

6 Prepare preliminary comparative market analysis to establish fair market value

7 Obtain copy of subdivision plat/complex layout

8 Research property’s ownership, deed type, and public record information for lot size and dimensions

9 Research and verify legal description

10 Research property’s land use coding, zoning and deed restrictions

11 Verify legal names of owner(s) in county’s public property records

12 Prepare listing presentation package with above materials

13 Perform exterior curb appeal assessment of subject property

14 Compile a formal file on property

15 Review Obsolete Property Rehabilitation Act (OPRA) report from township for all permitted records

Listing Management

16 Give overview of market conditions and projections

17 Tour property

18 Present your company’s profile and niche in the market

19 Present preliminary CMA, including comparable properties, sold properties, and current and expired listings

20 Discuss marketing goals with seller

21 Explain market power and benefits of MLS marketplaces

22 Explain power of web marketing, IDX and realtor.com®

23 Offer pricing strategy with updates to CMA based on tour of home, upgrades, professional judgment and current market conditions

24 Explain the work you do behind the scenes and your availability on weekends

25 Explain your role in screening for qualified buyers and protecting seller from curiosity seekers

26 Explain transaction and agency brokerage relationship

27 Review and explain all clauses in listing contract and addendum and obtain seller’s signature once property is under listing agreement

28 Review current title information

29 Gather square footage and measure overall and heated square footage

30 Measure interior room sizes

31 Note all unrecorded property liens, agreements, or easements

32 Obtain house plans, if applicable and available

33 Confirm lot size via owner’s copy of certified survey, if available

34 Discuss showing times with seller and prepare showing instructions for buyer’s agents

35 Discuss possible buyer financing alternatives and options with seller

36 Review current appraisal if available

37 Identify homeowner association manager if applicable

38 Verify homeowner association fees—mandatory or optional

39 Order copy of homeowner association bylaws

40 Research electricity supplier’s name and phone number

41 Have utility companies provide average utility usage from last 12 months

42 Research and verify city sewer/septic tank system/well status

43 Research/verify natural gas availability, supplier’s name and phone number

44 Verify security system and current terms of service

45 Verify if seller has transferable termite bond

46 Ascertain need for lead-based paint disclosure

47 Detail property amenities and assess market impact

48 Prepare detailed list of property’s inclusions and conveyances

49 Compile list of completed repairs and maintenance items

50 Explain benefits of homeowner warranty

51 Assist sellers with completion and submission of homeowner warranty application

52 Place homeowner warranty in property file for conveyance at time of sale

53 Have extra keys made for lockbox

54 Verify if property has rental units involved

55 If the property does have rental units, make copies of all leases for retention in listing file

56 Verify all rents and deposits

57 Inform tenants of listing and discuss how showings will be handled

58 Arrange for installation of yard sign

59 Provide suggestions on curb appeal and decor to improve salability

60 Load listing into transaction management software program

61 Prepare profile sheets for MLSs and enter property data into local MLS databases

62 Proofread MLS database listings for accuracy, including proper placement in map

63 Add property to company’s active listings list

64 Provide seller copies of listing agreement and MLS profile sheets within 48 hours or within required time of MLS

65 Take additional photos for upload into MLS and use in marketing

66 Create print and internet marketing with seller’s input

67 Coordinate showings with owners, tenants and other agents

68 Install and program electronic lockbox if authorized

69 Prepare mailing and contact list, and generate mail-merge letters

70 Order "just listed" labels and reports

71 Prepare fliers and feedback reports

72 Review comparable listings regularly to ensure property remains competitive

73 Prepare property marketing brochure for seller’s review

74 Arrange for printing or copying of marketing brochures or fliers

75 Place marketing brochures in all company agent mailboxes

76 Upload listing to company and agent internet site, if applicable

77 Mail out "just listed" notice to neighborhood residents

78 Advise network referral program of listing

79 Provide marketing data to buyers coming from referral network

80 Provide special feature cards for marketing, if applicable

81 Submit ads to company’s participating internet real estate sites

82 Reprint/supply brochures promptly as needed

83 Send feedback emails to buyer’s agents after showings

84 Review weekly market study

85 Discuss showing feedback with sellers

86 Set up marketing reports on showing-time application and company website

87 Place regular weekly update calls to seller to discuss marketing and pricing

88 Promptly enter price changes in MLS

Offers

89 Receive and review all offer-to-purchase contracts

90 Explain merits and weaknesses of offers, being sure to factor out unconscious bias

91 Contact buyer’s agents to review buyer’s qualifications and discuss offer

92 Deliver seller’s disclosure upon request

93 Evaluate offer(s) and prepare net sheet for owner for comparison purposes

94 Confirm buyer is prequalified by calling loan officer

95 Obtain buyer’s prequalification letter from loan officer if not submitted with offer

96 Negotiate all offers per seller’s direction on seller’s behalf, and set time limit for loan approval and closing

97 Prepare counteroffers and amendments; convey to buyer’s agent

98 Create spreadsheets for easy review of multiple bids

99 Email or send contract and addendums to closing agent

100 When offer-to-purchase contract is accepted, deliver to buyer’s agent

Contracts

101 Record and promptly deposit buyer’s earnest money in escrow account

102 Disseminate under-contract showing restrictions as seller requests

103 Deliver copies of fully signed offer-to-purchase contract to seller and lender

104 Advise seller of additional offers submitted between contract and closing

105 Change MLS status to sale pending

106 Update transaction management program to show sale pending

107 Provide credit report information to seller if property will be seller-financed

108 Coordinate with lender on discount points being locked in with dates

109 Confirm verifications of deposit and buyer’s employment have been returned

110 Follow loan processing through to the underwriter

111 Add lender and other vendors to your management program so agents, buyer and seller can track progress of sale

112 Contact lender weekly to ensure processing is on track

113 Relay final approval of buyer’s loan application to seller

Home and Other Inspections

114 Coordinate with seller for buyer’s professional home inspection

115 Review home inspector’s report

116 Enter completion into transaction management tracking program

117 Ensure seller’s compliance with home inspection clause requirements

118 Help seller identify contractors to perform any required repairs

119 Oversee required repairs, if needed

120 Deliver unrecorded property information to buyer

121 Handle septic system and well flow reports, and assess any possible impact on sale

122 Verify termite inspection ordered

123 Verify mold inspection ordered, if required

Appraisal

124 Work with seller and lender to schedule appraisal

125 Provide appraiser any comparable sales used in market pricing

126 Assist seller in questioning appraisal report if it falls below the contract price

Processing for Closing

127 Enter completion into transaction management program

128 Ensure contract is signed by all parties

129 Coordinate closing date and time with buyer’s agent and lender

130 Update closing forms and files

131 Ensure all parties have all forms and information needed to close the sale

132 Assist in solving title problems or obtaining death certificates

133 Work with buyer’s agent in scheduling buyer’s final walk-through prior to closing

134 Double-check all tax, homeowners association dues, utility, and applicable prorations

135 Request final closing figures from closing agent

136 Review closing figures to ensure accuracy of preparation

137 Confirm buyer and buyer’s agent have received title insurance commitment

138 Provide homeowner warranty for availability at closing

139 Forward closing documents to absentee seller as requested

140 Review docs with closing agent

141 Ensure no surprises so seller receives net-proceeds check at closing

142 Refer seller to qualified agents at their destination

143 Change status to Sold in MLS, entering sale date, price, selling broker, and any other required information.

Follow-Up

144 Share the warranty paperwork for claims in the future

145 Attempt to clarify and resolve any conflicts about repairs

146 Respond to any calls and provide any information required from office files

147 If a rental, verify all deposits and prorated rents are reflected accurately on the closing statement

148 Close out listing in transaction management program