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184+ Things The Hanley Home Team Does to Earn Our Commission

30 Tuesday Apr 2024

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Listed here are 184 actions, research steps, procedures, processes and review stages in a successful residential real estate transaction that we provide as a full service real estate team in return for our 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 – a REALTOR®.

Pre-Listing Activities

  • Make appointment with seller for listing presentation
  • Send seller a written or email confirmation of listing appointment and call to confirm
  • Review pre-appointment questions
  • Research all comparable currently listed properties
  • Research sales activity for past 18 months from MLS and public records databases
  • Research average Days on Market (DOM) for this property of this type, price range and location
  • Download and review property tax roll information
  • Prepare Comparable Market Analysis (CMA) to establish fair market value
  • 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 presentation package 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 Presentation

  • Give seller an overview of current market conditions and projections
  • Review agent’s and company’s credentials and accomplishments in the market
  • Present company’s profile and position or niche in the marketplace
  • Present CMA results to seller, including comparables, solds, current listings & expireds
  • Offer pricing strategy based on professional judgment and interpretation of current market conditions
  • Discuss goals with seller to market effectively
  • Explain market power and benefits of Multiple Listing Service (MLS)
  • Explain benefits of web marketing & IDX
  • Explain the work the brokerage and agent do behind the scenes and agent’s availability on weekends
  • Explain agent’s role in taking calls to screen for qualified buyers and protect seller from curiosity seekers
  • Present and discuss strategic master marketing plan
  • Explain different agency relationships and determine seller’s preference
  • Review and explain all clauses in listing contract & addendum and obtain seller’s signature once property is under listing agreement
  • Review current title information
  • Measure overall and heated square footage
  • Measure interior room sizes
  • Confirm lot size via owner’s copy of certified survey, if available
  • Note any and all unrecorded property lines, agreements, easements
  • Obtain house plans, if applicable and available
  • Review house plans and make copy
  • Order plat map for retention in property’s listing file
  • 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)
  • Check assumability of loan(s) and any special requirements
  • Discuss possible buyer financing alternatives and options with seller
  • Review current appraisal if available
  • Identify Home Owner Association (HOA) manager if applicable
  • Verify HOA fees with manager – mandatory or optional and current annual fee
  • Order copy of HOA 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 bond
  • 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 homeowner warranty to seller
  • Assist sellers with completion and submission of homeowner warranty application
  • When received, place homeowner 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
    * Verify all rents & deposits
    * Inform tenants of listing and discuss how showings will be handled
  • Arrange for installation of yard sign
  • Assist seller with completion of Seller’s Disclosure form
  • “New listing checklist” completed
  • Review results of curb appeal assessment with seller and provide suggestions to improve salability
  • Review results of interior decor 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 — agent is responsible for quality control and accuracy of listing data
  • Enter property data from profile sheet into MLS database
  • Proofread 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 and MLS Profile sheet data form within 48 hours
  • Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic and/or drone photography

Marketing The Listing

  • Create print and Internet ads with seller’s input
  • Coordinate showings with owners, tenants, and other Realtors®. Return all calls – weekends included
  • Install electronic lock box if authorized by owner. Program with agreed-upon showing time windows
  • Prepare mailing and contact list
  • Generate mail-merge letters to contact list
  • Order “Just Listed” labels & reports
  • Prepare flyers
  • Review comparable MLS listings regularly to ensure 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
  • Place marketing brochures in all company agent mail boxes
  • Upload listing to company and agent Internet site, if applicable
  • 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 requests sent to buyers’ agents after showings
  • Review weekly market study
  • 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
  • Promptly enter price changes in MLS listing database

The Offer and Contract

  • Receive and review all offers
  • 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
  • Submit seller’s disclosure to buyer’s agent or buyer upon request and prior to offer if possible
  • 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
  • Submit copies of contract and all addendums to closing attorney or title company
  • When offer is accepted and signed by seller, send to buyer’s agent
  • Record and promptly deposit buyer’s earnest money in escrow account
  • Disseminate “under-contract showing restrictions” as seller requests
  • Submit copies of signed contract to seller
  • Submit copies of signed contract to selling agent
  • Submit copies of signed contract 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 show “Sale Pending”
  • Review buyer’s credit report results — Advise seller of worst and best case scenarios
  • Provide credit report information to seller if property will be seller-financed
  • Assist buyer with obtaining financing, if applicable and follow-up as necessary
  • Coordinate with lender on discount points being locked in with dates
  • 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

  • Confirm verifications of deposit & buyer’s employment have been returned
  • Follow loan processing through to the underwriter
  • Add lender and other vendors to your management program so 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

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 home inspection clause requirements
  • Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform any required repairs
  • Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed

The Appraisal

  • Schedule appraisal
  • Provide comparable sales used in market pricing to appraiser
  • 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

  • Contract is signed by all parties
  • Coordinate closing process with buyer’s agent and lender
  • Update closing forms & files
  • Ensure all parties have all forms and info needed to close
  • 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.) or in obtaining death certificates
  • 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 prorations
  • 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
  • Confirm buyer and buyer’s agent have received title insurance commitment
  • Provide homeowners 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 management program

Follow Up After Closing

  • Answer questions about filing claims with Home Owner Warranty company if requested
  • Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied
  • Respond to any follow-on calls and provide any additional information required from office files.

Whew! That’s a long list!

Experience Matters! Choose your representation wisely – buying and selling a home is a BIG deal $$ Kevin and Jennifer Hanley, REALTORs 904-515-2479 HanleyHomeTeam.com

Why Homebuyers Shouldn’t Bank On Saving $10,000 by Not Working with a Buyers’ Agent as President Biden Recently Suggested

02 Tuesday Apr 2024

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In a recent speech about lowering housing costs for American families, President Biden said: 

“In addition, last week the National Association of Realtors agreed for the first time that Americans can negotiate lower commissions when they buy or sell their home. (Applause.)

On a typical home purchase, that alone could save folks an average of $10,000 on the sale or purchase.

I’m calling on Realtors to follow through on lowering their commissions to protect homebuyers.”

That probably sounds pretty amazing (and official) if you’re a potential homebuyer!

Unfortunately, for both homebuyers and agents, it’s not accurate. 

It’s unfortunate for buyers because it’s unlikely that the recent proposed settlement he’s referring to will actually result in $10,000 savings for them, because achieving those savings would depend upon a lot of factors. Yet it sounds like a slam dunk promise.

It’s unfortunate for agents because those remarks make it sound like commissions were never negotiable until now, even though they already were. And it sets unreasonable expectations for homebuyers that agents will potentially be blamed for not helping them achieve.

For starters, $10,000 may be a nice round number, but it’s also a random number. He didn’t provide any basis for that amount, and even if he did, there are too many variables for him to be able to make that claim. 

To be fair, he said “up to,” so that could allude to the savings being anywhere below that amount. But the reality is, buyers could easily focus on the $10,000 as an actual amount to expect.

How much you could possibly save depends upon many factors. So, in order to avoid confusion, let’s take a look at 6 variables that make it impossible to claim that a buyer will save an average of $10,000 when purchasing a home:

  1. It depends upon the commission amount typically being offered to buyers’ agents. While people outside of the industry often believe that commissions are a “standard 6%,” they’re not. (According to Statista, the average real estate commission hasn’t even reached 6% since 1992, and they vary from year to year.) More importantly, the portion of the commission offered to a buyers’ agent varies from one area of the country to another, and from one house to another in your local market area, and even depends upon the current market conditions. So there’s not even a specific commission amount you can use to begin doing the math accurately. 
  2. It depends upon the price range you’re buying in. The “average” buyer varies from one area of the country to another, and from one area of a state to another. So, for example, you could be buying in a higher-than-average price range for your area, but if it’s less than the “average” home prices the $10,000 amount was based upon, that amount of potential savings is unlikely.
  3. It depends upon you not working with a buyers’ agent, and representing yourself. The President’s statement suggests that the agents’ fees will be cut by $10,000 on average. While commissions may seem “high” to those outside of the industry, many agents don’t even come close to $10,000 commission checks on average. In many cases, based upon the $10,000 number, you’d actually have to get a buyers’ agent to agree to pay you for the pleasure of helping you! Unless you can negotiate with a buyers’ agent to agree to work with you for an extraordinarily low fee, or for free, the suggested savings would have to be achieved by not having to pay a buyers’ agent for their services.
  4. It depends upon you negotiating the best possible price for the home. Saving $10,000 by forgoing the help of a buyers’ agent also hinges upon you truly understanding what the market value of the home you’re attempting to purchase is, and successfully negotiating the best possible price for it. You could easily lose as much money as you’re trying to save (or more) by not knowing values well enough, or not negotiating as well as an agent would on your behalf. 
  5. It depends upon you even successfully buying a house. In order for savings to be achieved, you need to have successfully purchased a home. In many areas of the country competition is fierce between buyers. There are too few houses for sale, and more buyers than there are houses to choose from, which creates bidding wars. It’s often difficult for buyers to have their offer accepted with an amazing agent representing them, so competing on your own against other buyers represented by agents could be even more difficult. (This becomes even more of an issue if a seller and their listing agent have more confidence that the deal will go from acceptance to the closing table without a hitch with a buyer who has an agent representing them, versus one who is unrepresented and doesn’t know the process.)
  6. It depends upon you not costing yourself money by making mistakes throughout the transaction.It’s also possible to cost yourself thousands of dollars during the process of buying a home by not knowing what to do, or not to do in certain situations. The most likely aspect that could cost you money is in relation to any home inspection issues. Not recognizing something you should ask the seller to repair or replace, or not successfully negotiating for it, could cost you even more than you might be trying to save by not having a buyers’ agent represent you.

So, keep those things in mind if and when you hear anyone claiming you can save $10,000 (or any other amount) when you buy your next home. 

It may sound appealing to avoid working with a buyers’ agent for the promise of that much savings, but the representation of a great buyers’ agent is likely worth more than any amount you could save. 

Think about it this way… 

You can save money on the cost of a lawyer if you go to court by representing yourself. That might be fine if you’re just going to fight a traffic ticket. But if you’re going to court to sue someone else who’s represented by a lawyer, you’re probably not going to fare so well. You’d want someone who knows the process, and can get you the best results possible. 

Same goes for when you’re buying a house… 

It’s a large purchase, typically the largest one anyone makes, and not knowing what you’re doing can cost you more than the amount you could possibly save by not hiring a buyers’ agent.
So, rather than focusing on potentially saving money by not hiring one, focus on hiring the best one you can to help you negotiate the best results possible when purchasing your next home.

The Takeaway:

President Biden recently claimed that homebuyers could save an average of $10,000 due to the terms of a recent commission lawsuit settlement.

Unfortunately, it’s inaccurate and misleading, because there are several factors that make it impossible for that amount of savings to be guaranteed. Variables such as commission rates, property prices, negotiation skills, and market conditions, and the knowledge and skill sets of a particular buyer impact any potential savings. 

Hiring a skilled buyers’ agent often outweighs potential savings. So, rather than focusing on potentially saving money by not hiring one, focus on hiring the best one you can to help you negotiate the best results possible when purchasing your next home.

Experience Matters now more than ever. Hire expert buyers agents like us, Kevin and Jennifer Hanley, and let’s make your dream come true….affordably. Kevin and Jennifer Hanley, REALTORs 904-515-2479 HanleyHomeTeam.com