Over 160 Steps in a Real Estate Transaction
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Many homeowners and homebuyers are not aware of the true value a
REALTOR® provides during the course of a real estate transaction.
The list here is just a baseline since the services 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 to
not know the possibility even existed.
Listed here are over 160 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.
Pre-Listing Activities
01. Research all comparable currently listed properties
02. Research sales activity for past 18 months from MLS and public records databases
03. Research "Average Days on Market" for this property of this type, price range and location
04. Download and review property tax roll information
05. Prepare "Comparable Market Analysis" (CMA) to establish fair market value
06. Research property’s ownership & deed type
07. Research property’s public record information for lot size & dimensions
08. Research and verify legal description
09. Research property's land use coding and deed restrictions
10. Research property's current use and zoning
11. Verify legal names of owner(s) in county's public property records
13. Prepare listing presentation package with above materials
14. Perform exterior "Curb Appeal Assessment" of subject property
15. Compile and assemble formal file on property
16. Confirm current public schools and explain impact of schools on market value
17. Review listing appointment checklist to ensure all steps and actions have been completed
Listing Appointment Presentation
18. Give seller an overview of current market conditions and projections
19. Present CMA Results To Seller, Comparables, Solds, Current Listings & Expireds
20. Offer pricing strategy based on professional judgment and current market conditions
21. Discuss Goals With Seller To Market Effectively
22. Explain market power of web marketing, IDX and agency database of qualified buyers
23. Screen for qualified buyers and protect seller from curiosity seekers
24. Present and discuss strategic master marketing plan
25. Explain different agency relationships and determine seller's preference
26. Review and explain all clauses in Listing Contract & Addendum and obtain seller's signature
Once Property is Under Listing Agreement
27. Review current title information
28. Measure overall and heated square footage
29. Measure interior room sizes
30. Confirm lot size via owner's copy of certified survey, if available
31. Note any and all unrecorded property lines, agreements, easements
32. Obtain house plans, if applicable and available
33. Review house plans and make copy
34. Order plat map for retention in property's listing file
35. Obtain current mortgage loan(s) information: companies and & loan account numbers
36. Verify current loan information with lender(s)
37. Check assumability of loan(s) and any special requirements
38. Discuss possible buyer financing alternatives and options with seller
39. Review current appraisal if available
40. Identify Home Owner Association manager if applicable
41. Verify Home Owner Association Fees with manager
42. Order copy of Homeowner Association bylaws, if applicable
43. Research electricity availability and supplier's name and phone number
44. Calculate average utility usage from last 12 months of bills
45. Research and verify city sewer/septic tank system
46. Water System: Calculate average water fees or rates from last 12 months of bills )
47. Well Water: Confirm well status, depth and output from Well Report
48. Natural Gas: Research/verify availability and supplier's name and phone number
49. Verify security system, current term of service and whether owned or leased
50. Verify if seller has transferable Termite Bond
51. Ascertain need for lead-based paint disclosure
52. Prepare detailed list of property amenities and assess market impact
53. Prepare detailed list of property's "Inclusions & Conveyances with Sale"
54. Compile list of completed repairs and maintenance items
55. Send "Vacancy Checklist" to seller if property is vacant
56. Explain benefits of Home Owner Warranty to seller
57. Assist sellers with completion and submission of Home Owner Warranty Application
58. When received, place Home Owner Warranty in property file for conveyance at time of sale
59. Have extra key made for lockbox
60. Verify if property has rental units involved. And if so:
61. Make copies of all leases for retention in listing file
62. Verify all rents & deposits
63. Inform tenants of listing and discuss how showings will be handled
64. Arrange for installation of yard sign
65. Assist seller with completion of Seller's Disclosure form
66. New Listing Checklist Completed
67. Review results of Curb Appeal Assessment with seller and provide suggestions to improve
68. Review results of Interior Assessment and suggest changes to shorten time on market
69. Load listing into transaction management software program
70. Add property to company's Active Listings list
71. Provide seller with signed copies of Listing Agreement
72. Take professional photos for upload and use in flyers.
Marketing the Listing
73. Create print and Internet ads with seller's input
74. Coordinate showings with owners & tenants. Return all calls – weekends included
75. Install electronic lock box if authorized by owner
76. Prepare mailing and contact list
77. Generate mail-merge letters to contact list
78. Order “Just Listed” labels & reports
79. Prepare flyers & feedback faxes
80. Review comparable MLS listings regularly to ensure property remains competitive in price
81. Prepare property marketing brochure for seller's review
82. Arrange for printing or copying of supply of marketing brochures or fliers
83. Upload listing to company and agent Internet site, if applicable
84. Mail Out "Just Listed" notice to all neighborhood residents
85. Advise Network Referral Program of listing
86. Provide marketing data to buyers coming through international relocation networks
87. Provide marketing data to buyers coming from referral network
88. Provide "Special Feature" cards for marketing, if applicable
89. Submit ads to company's participating Internet real estate sites
90. Price changes conveyed promptly to all Internet groups
91. Reprint/supply brochures promptly as needed
92. Loan information reviewed and updated
93. Feedback e-mails/faxes sent to buyers' after showings
94. Review weekly Market Study
95. Discuss feedback from buyers with seller to determine if changes will accelerate the sale
96. Place regular weekly update calls to seller to discuss marketing & pricing
The Offer and Contract
97. Receive and review all Offer to Purchase contracts submitted by buyers or buyers' agents.
98. Cross qualify potential buyers to make sure they can close-click here to learn more
99. Evaluate offer(s) and prepare a "net sheet" on each for the owner for comparison purposes
100. Counsel seller on offers. Explain merits and weakness of each component of each offer
101. Contact buyers' to review buyer's qualifications and discuss offer
102. Deliver Seller's Disclosure to buyer upon acceptance
103. Confirm buyer is pre-qualified by calling Loan Officer
104. Obtain pre-qualification letter on buyer from Loan Officer
105. Negotiate all offers on seller's behalf, setting time limit for loan approval and closing date
106. Prepare and convey any counteroffers, acceptance or amendments to buyer's agent
107. Fax copies of contract and all addendums to closing attorney or title company
108. When Offer to Purchase Contract is accepted and signed by seller, deliver to buyer's
109. Record and promptly deposit buyer's earnest money in escrow account.
110. Disseminate "Under-Contract Showing Restrictions" as seller requests
111. Deliver copies of fully signed Offer to Purchase contract to seller
112. Fax/deliver copies of Offer to Purchase contract to S
113. Fax copies of Offer to Purchase contract to lender
114. Provide copies of signed Offer to Purchase contract for office file
115. Advise seller in handling additional offers to purchase
116. Change status to "Sale Pending"
117. Update transaction management program show "Sale Pending"
118. Review buyer's credit report results -- Advise seller of worst and best case scenarios
119. Provide credit report information to seller if property will be seller-financed
120. Assist buyer with obtaining financing, if applicable and follow-up as necessary
121. Coordinate with lender on Discount Points being locked in with dates
122. Deliver unrecorded property information to buyer
123. Order septic system inspection, if applicable
124. Receive and review septic system report and assess any possible impact on sale
125. Deliver copy of septic system inspection report lender & buyer
126. Deliver Well Flow Test Report copies to lender & buyer and property listing file
127. Verify termite inspection ordered
128. Verify mold inspection ordered, if required
Tracking the Loan Process
129. Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
130. Follow Loan Processing Through To The Underwriter
131. Contact lender weekly to ensure processing is on track
132. Relay final approval of buyer's loan application to seller
Home Inspection
133. Coordinate buyer's professional home inspection with seller
134. Review home inspector's report
135. Enter completion into transaction management tracking software program
136. Explain seller's responsibilities with respect to loan limits and interpret any clauses
137. Ensure seller's compliance with Home Inspection Clause requirements
138. Assist seller with negotiating with trustworthy contractors to perform any required repairs
139. Negotiate payment and oversee completion of required repairs on seller's behalf, if needed
The Appraisal
140. Schedule Appraisal
141. Provide comparable sales used in market pricing to Appraiser
142. Follow-Up On Appraisal
143. Enter completion into transaction management program
144. Assist seller in questioning appraisal report if it seems too low
Closing Preparations and Duties
145. Contract Is Signed By All Parties
146. Coordinate closing process with buyer's agent and lender and escrow
147. Update closing forms & files
148. Ensure all parties have all forms and information needed to close the sale
149. Select location where closing will be held
150. Confirm closing date and time and notify all parties
151. Assist in solving any title problems ie.boundary disputes, easements, obtaining death certs
152. Work with buyer's in scheduling and conducting buyer's Final Walk-Thru prior to closing
153. Research all tax, HOA, utility and other applicable prorations
154. Request final closing figures from closing agent (title company)
155. Receive & carefully review closing figures to ensure accuracy of preparation
156. Forward verified closing figures to buyer's
157. Request copy of closing documents from closing agent
158. Confirm buyer and buyer's have received title insurance commitment
159. Provide "Home Owners Warranty" for availability at closing
160. Reviews all closing documents carefully for errors
161. Forward closing documents to absentee seller as requested
162. Review documents with closing agent (title company)
163. Coordinate this closing with seller's next purchase and resolve any timing problems
164. Have a "no surprises" closing so that seller receives a net proceeds check at closing
165. Refer sellers to one of the best agents at their destination, if applicable
166. Change status to Sold. Enter sale date, price, etc.
Follow Up After Closing
167. Answer questions about filing claims with Home Owner Warranty company if requested
168. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
169. Respond to any follow-on calls and provide any additional information required
Please feel free to call/text any questions you may have.
I look forward to being of service to you.
Lamont Hyde
TMG Realty & Loans
562-968-7004
lamonthyde@gmail.com
BRE 1863312 / NMLS 1478632