Selling your home involves more than just putting some pictures and a description on the MLS. When you hire a full service REALTOR® to sell your home, you create a fiduciary relationship between yourself and the agent. This is a legal relationship in which one party (the fiduciary) is bound by law to act in the best interest of another party (the beneficiary). The fiduciary has a duty of loyalty and care to the beneficiary and must always act in their best interests. This is the same relationship one has with their lawyer. In each of these cases, the fiduciary is expected to act in the best interest of their client, avoid conflicts of interest, and maintain confidentiality. Your agent also becomes part of your investment/financial management team, helping you manage of your most valuable assets.
Once you’ve chosen an agent and signed a listing agreement, the agent’s duties break down into the following general categories:
- Conducting a comparative market analysis to determine the market value of the property.
- Advising the homeowner on the appropriate asking price for the property.
- Developing a marketing plan to promote the property to potential buyers.
- Listing the property on multiple listing services (MLS) and other online platforms.
- Arranging for open houses and property viewings.
- Negotiating with potential buyers and their agents.
- Drafting and reviewing contracts and other legal documents.
- Coordinating with other professionals involved in the sale, such as appraisers, inspectors, and escrow officers.
- Providing regular updates to the homeowner on the status of the sale.
- Facilitating the closing of the sale and transfer of ownership.
Those 10 areas areas are made up of at least 182 typical actions that an agent has to do to complete a successful real estate transaction. And agents do not get paid for any of it until (and unless) the transaction closes and funds.
Pre-Listing Activities:
- Make appointment with seller for listing conversation/presentation
- Send seller e-mail confirmation of listing conversation and call to confirm
- Review pre-appointment questions
- Research all comparable currently listed properties in local neighborhood
- Research sales activity for past 6 months from MLS and public records databases
- Research “Average Days on Market” for this property of this type, price range and location
- Download and review property tax roll information
- Prepare “Competitive Market Analysis” (CMA) to establish price range of solds
- Obtain copy of subdivision plat/complex lay-out
- Research property’s ownership & deed type
- Research property’s public record information for lot size & dimensions
- Research and verify legal description
- Research property’s land use coding and deed restrictions
- Research property’s current use and zoning
- Verify legal names of owner(s) in county’s public property records
- Prepare listing conversation with above materials
- Perform exterior “Curb Appeal Assessment” of subject property
- Compile and assemble formal file on property
- Confirm current public schools and explain impact of schools on market value
- Review listing appointment checklist to ensure all steps and actions have been completed
Listing Appointment Conversation:
- Give seller an overview of current market conditions and projections
- Review our credentials and accomplishments in the market
- Present our company profile and position in the marketplace
- Present CMA results to seller, including comparables, solds, current listings & expireds
- Offer pricing strategy based on professional judgment and of current market conditions
- Discuss goals with Seller to market the house effectively
- Explain market power and benefits of Multiple Listing Service (MLS)
- Explain market power of web marketing, IDX and REALTOR.com
- Explain the work the Realtor® does “behind the scenes” and Realtor’s availability on weekends
- Explain Realtor taking calls to screen for qualified buyers and protect seller from curiosity seekers
- Present and discuss strategic master marketing plan
- Explain different agency relationships, company policies and determine seller’s preference and obtain signature on IBS.
- Review and explain all clauses in Listing Contract & Addenda (if any) and obtain seller’s signature
Once Property is Under Listing Agreement
- Review current title information
- Take photos and video of house
- Obtain owner’s copy of certified survey, if available and T-47 (has to be notarized)
- Note any and all unrecorded property lines, agreements, easements
- Obtain house plans, if applicable and available
- Review house plans and make copy
- If new construction ask if owner has a copy of the plat map when they purchased
- Prepare showing instructions for buyers’ agents and agree on showing time window with seller
- Obtain current mortgage loan(s) information: companies and & loan account numbers
- Verify current loan information with lender(s) via seller
- Check assume ability of loan(s) and any special requirements (FHA & VA are qualifying assumable)
- Discuss possible buyer financing alternatives and options with seller
- Review current appraisal if available
- Identify Home Owner Association manager if applicable
- Verify Home Owner Association Fees with manager – mandatory or optional
- Order copy of Homeowner Association bylaws, if applicable
- Research electricity availability and supplier’s name and phone number
- Calculate average utility usage from last 12 months of bills
- Research and verify city sewer/septic tank system
- Water System: Calculate average water fees or rates from last 12 months of bills )
- Well Water: Confirm well status, depth and output from Well Report
- Natural Gas: Research/verify availability and supplier’s name and phone number
- Verify security system, current term of service and whether owned or leased
- Verify if seller has transferable Termite warranty
- Ascertain need for lead-based paint disclosure
- Prepare detailed list of property amenities and assess market impact
- Prepare detailed list of property’s “Inclusions & Conveyances with Sale”
- Compile list of completed repairs and maintenance items
- Send “Vacancy Checklist” to seller if property is vacant
- Explain benefits of Home Owner Warranty to seller (give choices as per your broker’s P&P)
- Assist sellers with completion and submission of Home Owner Warranty Application
- When received, place Home Owner Warranty in property file for conveyance at time of sale
- Have extra key made for lockbox
- Verify if property has rental units involved. And if so:
- Make copies of all leases for retention in listing file and verify all rents & deposits
- Inform tenants of listing and discuss how showings will be handled
- Arrange for installation of yard sign and electronic lock box
- Be sure seller completes Seller’s Disclosure form
- “New Listing Checklist” Completed
- Review results of Curb Appeal Assessment with seller and provide suggestions to improvements
- Review results of Interior Décor Assessment and suggest changes to shorten time on market
- Load listing into transaction management software program
Entering Property in Multiple Listing Service Database
- Prepare MLS Profile Sheet, REALTOR® is responsible for accuracy of listing data
- Enter property data from Profile Sheet into MLS Listing Database
- Proof read MLS database listing for accuracy – including proper placement in mapping function
- Add property to company’s Active Listings list
- Provide seller with signed copies of Listing Agreement
- Provide seller with MLS Profile Sheet Data Form within 48 hours
- Take additional photos for upload into MLS and use in flyers.
Marketing Of The Listing
- Create print and Internet ads with seller’s input
- Coordinate showings with owners, tenants, and other agents
- Return all calls – weekends included
- Program with agreed-upon showing time windows
- Prepare mailing and contact list
- Generate mail-merge letters to contact list
- Order “Just Listed” cards or door hangers
- Prepare flyers & feedback
- Review comparable MLS listings weekly
- Determine if property remains competitive in price, terms, conditions and availability
- Prepare property marketing brochure for seller’s review
- Arrange for printing or copying of supply of marketing brochures or fliers
- Email marketing brochures to all top selling agents in Area
- Upload listing to company Internet site
- Mail Out “Just Listed” notice to all neighborhood residents
- Advise Network Referral Program of listing
- Provide marketing data to buyers coming through international relocation networks
- Provide marketing data to buyers coming from referral network
- Provide “Special Feature” cards for marketing, if applicable
- Submit ads to company’s participating Internet real estate sites
- Price changes conveyed promptly to all Internet groups
- Reprint/supply brochures promptly as needed
- Loan information reviewed and updated in MLS as required
- Feedback e-mails/faxes sent to buyers’ agents after showings
- Review weekly Market Study and Promptly enter price adjustments in MLS listing database
- Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
- Place regular weekly update calls to seller to discuss marketing & pricing
Offer and Contract
- Receive and review all offers submitted by buyers or buyers’ agents.
- Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes
- Counsel seller on offers. Explain merits and weakness of each component of each offer
- Contact buyers’ agents to review buyer’s qualifications and discuss offer
- Upload to MLS Seller’s Disclosure so buyer’s agent and buyer can review prior to making offer
- Confirm buyer is pre-approved by calling Loan Officer
- Obtain pre-approval letter on buyer from Loan Officer
- Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date
- Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent
- Be sure copies of contract and all addenda are received by all parties
- When Offer is accepted and signed by seller, deliver to buyer’s agent
- Record and promptly deposit buyer’s earnest money
- Disseminate “Under-Contract Showing Restrictions” as seller requests
- Deliver copies of fully signed contract to seller
- Deliver copies of contract to Selling Agent
- Be sure copies of contract are sent to lender
- Provide copies of signed contract for office file
- Advise seller in handling additional offers to purchase submitted between contract and closing
- Change status in MLS to “Sale Pending”
- Update transaction management program to show “Sale Pending”
- Be sure all web sites and advertising reflect “Sale Pending”
- Provide credit report information to seller if property will be seller-financed
- If cash contract be sure seller has “proof of funds”
- Coordinate with lender on Discount Points being locked in with dates (typically buyer job)
- Deliver unrecorded property information to buyer
- Order septic system inspection, if applicable
- Receive and review septic system report and assess any possible impact on sale
- Deliver copy of septic system inspection report lender & buyer
- Deliver Well Flow Test Report copies to lender & buyer and property listing file
- Verify termite inspection ordered
- Verify mold inspection ordered, if required
Tracking the Loan Process
- Check with lender on progress of loan
- Follow Loan Processing Through To The Underwriter
- Add lender and other vendors to transaction management program
- Ensure agents, buyer and seller can track progress of sale
- Contact lender weekly to ensure processing is on track
- Relay final approval of buyer’s loan application to seller (when appraisal is completed)
Home Inspection
- Coordinate buyer’s professional home inspection with seller
- Review home inspector’s report
- Enter completion into transaction management tracking software program
- Explain seller’s responsibilities with respect to loan limits and interpret any clauses in the contract
- Ensure seller’s compliance with any lender required repairs
- Assist seller with identifying and negotiating with contractors to perform any required repairs
- Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed
The Appraisal
- Provide comparable sales used in market pricing to Appraiser & any list of improvements from seller (if any) and try to be there for every appraisal with seller’s permission
- Follow-Up On Appraisal
- Enter completion into transaction management program
- Assist seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
- Be sure Contract was Signed By All Parties and the effective date is there
- Coordinate closing process with buyer’s agent and lender
- Update closing forms & files
- Ensure all parties have all forms and information needed to close the sale
- Select location where closing will be held
- Confirm closing date and time and notify all parties
- Assist in solving any title problems (boundary disputes, easements, etc)
- Assist in obtaining Death Certificates, if applicable
- Work with buyer’s agent in scheduling and conducting buyer’s Final Walk-Thru prior to closing
- Research all tax, HOA, utility and other applicable pro-rations
- Request final closing figures from closing agent (attorney or title company)
- Receive & carefully review closing figures to ensure accuracy of preparation
- Forward verified closing figures to buyer’s agent
- Request copy of closing documents from closing agent
- Be sure all repairs (if any) have been completed and buyer’s agent has receipts
- Provide “Home Owners Warranty” for availability at closing
- Review all closing documents carefully for errors
- Forward closing documents to absentee seller as requested
- Review documents with closing agent (attorney)
- Provide earnest money deposit check from escrow account to closing agent
- Coordinate this closing with seller’s next purchase and resolve any timing problems
- Have a “no surprises” closing so that seller receives a net proceeds check at closing
- Refer sellers to one of the best agents at their destination, if applicable
- Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.
- Close out listing in transaction management program
Follow Up After Closing
- Answer questions about filing claims with Home Owner Warranty company if requested
- Respond to any follow-on calls and provide any additional information required from office files