Did you ever ask yourself this question when considering a home for sale in Fountain Valley, Huntington Beach or the surrounding Orange County Real Estate market? If so then you'll appreciate this outstanding list of what actually goes on behind the scenes. In general, sellers may not really be aware of just how much work and time is involved in the real estate sales transaction, which is one reason why the National Association of Realtors recommends you hire a licensed RealtorĀ® to list and sell your home. The majority of the work is done on the back end under the watchful eye of the RealtorĀ® and without minute-by-minute involvement of the seller. After you've read through this list you'll likely have a better understanding and appreciation of why it is so important to hire a licensed professional RealtorĀ® to get the job done for you.
(Pat Vredevoogd-Combs, past president of the National Association of Realtors, testified before the House Financial Services Committee on Housing to blunt government complaints about industry pricing.āBy all accounts,ā she said, āthe general public is not aware of all the services that agents provide to sellers and buyers during the course of the transaction, probably because most of the important services are performed behind the scenes.ā
As part of her testimony, she submitted a list of 184 things that listing agents do in every real estate transaction. This list has been modified to reflect updates and additions. This list also does not include the numerous amount of hours spent on the phone with the seller early morning or late evening and weekends being a confidant, therapist and friend. Along with hours on the phone and emails back and forth with agents and potential buyers.)
Pre-Listing Activities
1. Make appointment with seller for listing presentation.
2. Send a written or e-mail confirmation of appointment and call to confirm.
3. Review appointment questions.
4. Research all comparable currently listed properties.
5. Research sales activity for past 18 months from MLS and public databases.
6. Research āaverage days on marketā for properties similar in type, price and location.
7. Download and review property tax roll information.
8. Prepare ācomparable market analysisā (CMA) to establish market value.
9. Obtain copy of subdivision plat/complex layout.
10. Research propertyās ownership and deed type.
11. Research propertyās public record information for lot size and dimensions.
12. Verify legal description.
13. Research propertyās land use coding and deed restrictions.
14. Research propertyās current use and zoning.
15. Verify legal names of owner(s) in countyās public property records.
16. Prepare listing presentation package with above materials.
17. Perform exterior ācurb appeal assessmentā of subject property.
18. Compile and assemble formal file on property.
19. Confirm current public schools and explain their impact on market value.
20. Review listing appointment checklist to ensure completion of all tasks.
Listing Appointment Presentation
21. Give seller an overview of current market conditions and projections.
22. Review agent and company credentials and accomplishments.
23. Present companyās profile and position or ānicheā in the marketplace.
24. Present CMA results, including comparables, solds, current listings and expireds.
25. Offer professional pricing strategy based and interpretation of current market conditions.
26. Discuss goals 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 broker and agent do ābehind the scenesā and agent's availability on weekends.
30. Explain agentās role in screening qualified buyers to protect against curiosity seekers.
31. Present and discuss strategic master marketing plan.
32. Explain different agency relationships and determine sellerās preference.
33. Review all clauses in listing contract and obtain sellerās signature.
After Listing Agreement is Signed
34. Review current title information.
35. Measure overall and heated square footage.
36. Measure interior room sizes.
37. Confirm lot size via ownerās copy of certified survey, if available.
38. Note any and all unrecorded property lines, agreements, easements.
39. Obtain house plans, if applicable and available.
40. Review house plans, make copy.
41. Order plat map for retention in propertyās listing file.
42. Prepare showing instructions for buyersā agents and agree on showing time with seller.
43. Obtain current mortgage loan(s) information: companies and 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 as applicable.
49. Verify Home Owner Association fees with managerāmandatory or optional and current annual fee.
50. Order copy of Home Owner Association bylaws, if applicable.
51. Research electricity availability and supplierās 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. Calculate average water system fees or rates from last 12 months of bills.
55. Or confirm well status, depth and output from Well Report.
56. Research/verify natural gas availability, supplierās name and phone number.
57. Verify security system, 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 propertyās āInclusions & Conveyances with Sale.ā
62. Complete list of completed repairs and maintenance items.
63. Send āVacancy Checklistā 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 and deposits.
71. Inform tenants of listing and discuss how showings will be handled.
72. Arrange for yard sign installation.
73. Assist seller with completion of Sellerās Disclosure form.
74. Complete ānew listing checklist.ā
75. Review results of Curb Appeal Assessment with seller and suggest
improvements for salability.
76. Review results of Interior Decor Assessment and suggest changes to shorten time on market.
77. Load listing time into transaction management software.
Entering Property in MLS Database
78. Prepare MLS Profile Sheetāagent is responsible for āquality controlā and accuracy of listing data.
79. Enter property data from Profile Sheet into MLS listing database.
80. Proofread MLS database listing for accuracy, including property placement in mapping function.
81. Add property to companyās Active Listings.
82. Provide seller with signed copies of Listing Agreement and MLS Profile Data Form with 48 hours.
83. Take more photos for upload into MLS and use in flyers.
Marketing the Listing
84. Create print and Internet ads with sellerās input.
85. Coordinate showings with owners, tenants and other agents. Return all calls-weekends included.
86. Install electronic lockbox. Program with agreed-upon showing time windows.
87. Prepare mailing and contact list.
88. Generate mail-merge letters to contact list.
89. Order āJust Listedā labels and reports.
90. Prepare flyers and feedback forms.
91. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, condition and availability.
92. Prepare property marketing brochure for sellerās review.
93. Arrange for printing or copying of supply of marketing brochures or flyers.
94. Place marketing brochures in all company agent mailboxes.
95. Upload listing to company and agent Internet sites, if applicable.
96. Mail āJust Listedā notice to all neighborhood residents.
97. Advise Network Referral Program of listing.
98. Provide marketing data to buyers from international relocation networks.
99. Provide marketing data to buyers coming from referral network.
100. Provide āSpecial Featureā cards form marketing, if applicable/
101. Submit ads to companyās participating Internet real estate sites.
102. Convey price changes promptly to all Internet groups.
103. Reprint/supply brochures promptly as needed.
104. Review and update loan information in MLS as required.
105. Send feedback e-mails/faxes to buyersā 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 and pricing.
109. Promptly enter price changes in MLS listings database.
The Offer and the Contract
110. Receive and review all Offers to Purchase contracts submitted by buyers or buyers' agent.
111. Evaluate offer(s) and prepare ānet sheetā on each for owner to compare.
112. Counsel seller on offers. Explain merits and weakness of each component of each offer.
113. Contact buyersā agents to review buyerās qualifications and discuss offer.
114. Fax/deliver Sellerās Disclosure to buyerās agent or buyer upon request and prior to offer if possible.
115. Confirm buyer is pre-qualified by calling loan officer.
116. Obtain pre-qualification letter on buyer from loan officer.
117. Negotiate all offers on sellerās behalf, setting time limit for loan approval and closing date.
118. Prepare and convey any counteroffers, acceptance or amendments to buyerās
agent.
119. Fax copies of contract and all addendums to closing attorney or Title Company.
120. When Offer-to-Purchase contract is accepted and signed by seller, deliver to
buyerās agent.
121. Record and promptly deposit buyerās money into escrow account.
122. Disseminate āUnder-Contract Showing Restrictionsā as seller requests.
123. Deliver copies of fully signed Offer to Purchase contract to sellers.
124. Fax/deliver copies of Offer to Purchase contract to selling agent.
125. Fax copies of Offer to Purchase contract to lender.
126. Provide copies of signed Offer to Purchase contract for office file.
127. Advise seller in handling additional offers to purchase submitted between contract and closing.
128. Change MLS status to āSale Pending.ā
129. Update transaction management program to show āSale Pending.ā
130. Review buyerās credit report resultsāAdvise seller of worst and best case
scenarios.
131. Provide credit report information to seller if property is to be seller financed.
132. Assist buyer with obtaining financing and follow up as necessary.
133. Coordinate with lender on discount points being locked in with dates.
134. Deliver unrecorded property information to buyer.
135. Order septic inspection, if applicable.
136. Receive and review septic system report and access any impact on sale.
137. Deliver copy of septic system inspection report to lender and buyer.
138. Deliver well flow test report copies to lender, buyer and listing file.
139. Verify termite inspection ordered.
140. Verify mold inspection ordered, if required.
Tracking the Loan Process
141. Confirm return of verifications of deposit and buyerās employment.
142. Follow loan processing through to the underwriter.
143. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale.
144. Contact lender weekly to ensure processing is on track.
145. Relay final approval of buyerās loan application to seller.
Home Inspection
146. Coordinate buyerās professional home inspection with seller.
147. Review home inspectorās report.
148. Enter completion into transaction management tracking software program.
149. Explain sellerās responsibilities of loan limits and interpret any clauses in the contract.
150. Ensure sellerās compliance with home inspection clause requirements.
151. Assist seller with identifying and negotiating with trustworthy contractors for required repairs.
152. Negotiate payment and oversee completion of all required repairs on seller's behalf, if needed.
The Appraisal
153. Schedule appraisal.
154. Provide comparable sales used in market pricing to appraiser.
155. Follow up on appraisal.
156. Enter completion into transaction management program.
157. Assist seller in questioning appraisal report if it seems too low.
Closing Preparations and Duties
158. Make sure contract is signed by all parties.
159. Coordinate closing process with buyerās agent and lender.
160. Update closing forms and files.
161. Ensure all parties have all forms and information needed to close the sale.
162. Select location for closing.
163. Confirm closing date and time and notify all parties.
164. Solve any title problems (boundary disputes, easements, etc.) or in obtaining death certificates.
165. Work with buyerās agent in scheduling and conducting buyerās final walkthrough prior to closing.
166. Research all tax, HOA, utility and other applicable prorations.
167. Request final closing figures from closing agent (attorney or title company).
168. Receive and carefully review closing figures to ensure accuracy.
169. Forward verified closing figures to buyerās agent.
170. Request copy of closing documents from closing agent.
171. Confirm the buyer and buyerās agent received title insurance commitment.
172. Provide āHome Owners Warrantyā for availability at closing.
173. Review all closing documents carefully for errors.
174. Forward closing documents to absentee seller as requested.
175. Review documents with closing agent (attorney).
176. Provide earnest money deposit from escrow account to closing agent.
177. Coordinate closing with sellerās next purchase, resolving timing issues.
178. Have a āno surprisesā closing so that seller receives a net proceeds check at closing.
179. Refer sellers to one of the best agents at their destination, if applicable.
180. Change MLS status to Sold. Enter sale date, price, selling broker and agentās ID numbers, etc.
181. Close out listing in transaction management program.
Follow Up After Closing
182. Answer questions about filing claims with Home Owner Warranty company, if requested.
183. Attempt to clarify and resolve any repair conflicts if buyer is dissatisfied.
184. Respond to any follow-up calls and provide any additional information required from office files.