The Critical Role of the REALTOR®

Listed here are 136 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, understanding the importance of having help and guidance from someone who fully understands the process – a REALTOR®.

Comprehensiveness

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.

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.

And never forget that REALTORS® are pledged to uphold the stringent, enforceable tenets of the REALTOR® Code of Ethics in their professional dealing with the public! Remember, not every real estate registrant holds REALTOR® membership or MLS® access; 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 in the area from MLS® database
6. Research days-on-the-market for similar properties, location and price
7. Review property tax roll information
8. Prepare “Comparative Market Analysis” (CMA) to establish fair market value
9. Research property’s ownership and how it is held (deed)
10. Check Municipal tax records for lot size
11. Verify the legal description from public records
12. Check Planning Department of Municipal Offices for current zoning
13. Check for land use restrictions or special zoning
14. Verify legal names in the Registry Office (or deed)
15. Prepare listing presentation with researched materials
16. Drive by the property to assess the Curb Appeal, compare with neighbourhood
17. Start formal office file on the property
18. Confirm school district and effect of schools on the property value
19. Determine whether property is subject to a shoreline road allowance (if applicable)
20. Review all pertinent information to ensure that it’s complete
21. Critical Role of the REALTOR® Page 4 of 7 Listing Appointment Presentation
22. Explain the various agency relationships using Working With a Realtor® pamphlet and get acknowledgement that this has been reviewed with the seller
23. Give the seller an overview of current market conditions and projections
24. Review sales representative and brokerages credentials and accomplishments.
25. Review and confirm all legal descriptions and ownership details
26. Measure exterior and establish the square footage above grade
27. Confirm lot size from owner’s survey – if no survey is available, make a note on the listing
28. Note any lot line fencing, easements and variances
29. Discuss with the seller the possibility of seller take back (STB) and other options
30. Review any appraisal that may have been made
31. Present CMA to the Seller including Comparable sold properties, Current listings and Expired listings
32. Offer pricing strategy based on experience and current market conditions
33. Discuss a Marketing Plan to meet the goals of the seller
34. Explain the advantages and power of Multiple Listing Service
35. Explain the use and power of web marketing, IDX and mls.ca
36. Explain the work both the salesperson and brokerage do behind the scenes and availability at night and on weekends
37. Explain the sales professional’s role in taking calls and screening for qualified buyers and curiosity seekers
38. Present and explain the strategic master marketing plan
39. Review and explain the Listing Agreement and obtain the signature of the seller – give the seller(s) copies.

Once the Property is Listed

1. Measure and record all room dimensions
2. Obtain house plans if available
3. Make a copy of any house plans
4. Copy survey and retain in listing file
5. Advise seller of how showing appointments will be made
6. Prepare instructions for salespeople showing the property and confirm with the seller the best times to show to prospective buyers
7. Have Mortgage Verification Forms signed and submitted to mortgagee
8. Verify with lender any penalties, terms and current rates and if the mortgage can be discharged
9. Check on whether the existing mortgage can be assumed and under what terms.
10. Confirm any Condominium Fees or Homeowner Association fees currently in effect
11. Get a copy of the Condominium bylaws, if applicable
12. Confirm supplier of Hydro or any other provider of this utility
13. Calculate the utility usage for the past 12 months from seller’s records
14. Verify the availability of any septic bed layout or permits at time of installation
15. Water – if Municipal check on rates for the past 12 months
16. Well Water – confirm well status and have Health Unit test so remedial steps can be taken if required. Also, advise of any abandoned wells on the property and put on the listing
17. Determine natural gas, heating oil or propane supplier’s name and telephone number
18. Note on listing any rented appliances i.e. hot water tank, furnace, etc.
19. Verify security system- owned, rented, terms and service terms
20. Ascertain if any lead-based paint, asbestos insulation, UFFI or other latent defect needs to be disclosed
21. Prepare a list of property features such as pool, sauna, whirlpool, landscape pools and special plants
22. Prepare a list of chattels included or excluded from the sale of the property
23. Compile a list of recent improvements, repairs or maintenance
24. Send letter to Seller if property is vacant to advise insurance company
25. Explain the advantages of a lock box and have extra keys made
26. Verify if property has rental units. If so:
    * Inquire as to whether they comply with the zoning by-law, fire and electrical safety
    * Make copies of all rental agreements
    * Determine ownership of any appliances or other chattels
    * Verify and list all rental amounts and deposits held
    * Inform tenant of the listing and discuss how showings will be handled
27. Arrange for installation of For Sale sign
28. Assist seller to fill in the Seller Property Information Statement
29. Give the seller a blank copy of the Agreement of Purchase and Sale and discuss it with them
30. Explain the offer presentation process and the possibility of multiple offers
31. Discuss the type of conditions that will likely be included in an offer to purchase
32. Discuss results of Curb Appeal Assessment, Interior Décor Assessment and discuss ways to improve appearances for showings.
33. Arrange for Office Tour/MLS® Tour and report comments back to seller
34. Load listing into personal database for transaction management

Entering Property in Multiple Listing Service® Database

1. Prepare and check MLS® data input sheet
2. Upload to Real Estate Board – MLS® Data Input
3. Proof read listing as it appears in mls.ca
4. Take additional photos for uploading to MLS® and for use in Flyer. Talk to seller about virtual tour possibilities

Marketing The Listing

1. Create both print and Internet Ads with seller’s input
2. Co-ordinate showings with the owner, tenants and other REALTORS®. Return all calls – weekends included
3. Install lockbox if authorized by the owner
4. Prepare personal mailing and contact list
5. Generate mail merge letters to contact list
6. Order “Just Listed” cards and handouts
7. Prepare flyers and feedback faxes
8. Constantly review MLS® listings to ensure property remains competitive in price
9. Prepare property marketing brochure for seller’s approval
10. Arrange for printing of approved brochure and distribution
11. Distribute property brochure to all company salespeople
12. Mail out “Just Listed” notices to the immediate neighbourhood residents
13. Advise company Network Referral Program of the listing
14. Provide marketing data to buyers coming through international relocation
15. Provide marketing data to buyers coming from referral network
16. Submit ads to company’s internet site
17. Price changes promptly conveyed to all databases and internet groups
18. Reprint supply of brochures as required
19. Update Mortgage information as available to all marketing facilities
20. Follow up feed back e-mails and faxes sent to representatives who have shown the property
21. Discuss feedback from showing representatives with the seller to determine if changes are required to accelerate the sale
22. Place regular weekly update calls to the seller to discuss marketing activity and results
23. Receive and review all Offers to Purchase submitted by buyers and buyers’ representatives
24. Evaluate offer and prepare a “net sheet” on each for owner comparison
25. Counsel owners on each offer – explaining merits and weaknesses of each
26. Contact buyer’s representative to discuss qualifications and motivations of their client
27. Fax/Deliver S.P.I.S. to buyer’s representative or buyer prior to offer if possible
28. Confirm that buyer is qualified by Mortgage Officer
29. Obtain pre-qualification letter from Mortgage Officer
30. Negotiate all offers on seller’s behalf, setting condition time limits and closing date
31. Prepare and convey all counter offers, acceptance and/or amendments to buyer’s representative
32. Fax copies and mail originals of all documents to lawyer for the seller
33. When Offer to Purchase is settled and finalized by the seller, deliver to the buyer’s representative leaving a true copy with the owner
34. Deliver deposit to Trust Account as soon as practicable.
35. Provide copy of the executed agreement to the office for filing in the deal file
36. Advise and counsel owner on the handling of offers while the original transaction is pending i.e. days to meet conditions in first offer and procedures
37. Update personal transaction program indicating Sale Pending
38. Assist buyer in applying for financing, if applicable
39. Arrange for appraiser to inspect the property and give any information including comparables, survey copy, etc.
40. If STB – get Credit Report of buyer for seller and review it with him/her
41. Order Septic Tank inspection, if applicable
42. Deliver water test results from Health Unit to mortgage company
43. Arrange other inspections as required by Financial Institution and/or insurance company i.e. mould, termite WETT inspection, etc.

Mortgage Tracking

1. Contact lender regarding mortgage application progress
2. Prepare/obtain waiver or condition removal documents and deliver to lawyer for the seller

Home Inspection

1. Co-ordinate buyer’s professional home inspection
2. Review the inspection report
3. If repairs required, assist seller in obtaining trustworthy contractor to perform required repairs

The Appraisal

1. Schedule appraisal appointment
2. Provide appraiser with comparables used to set list price
3. Assist seller in questioning appraisal report if it seems too low

Closing Preparations and Duties

1. Work with buyer’s representative to arrange any visits prior to closing as agreed in the Agreement of Purchase and Sale
2. Arrange for trust deposit monies, if in excess of commission due, to be given to the lawyer for the seller
3. Be available for any concerns/questions from the seller
4. Advise MLS® that property is Sold and supply details as to price, date of sale, selling brokerage

This list is adapted from the list prepared by the Orlando Regional REALTOR® Association. Canadian content has been added.