What your REALTOR® Actually Does for You - in 110 Steps

The Real Estate Transaction in 110 Steps - What your REALTOR® Actually Does for You.

I had a pretty good wake-up call when I joined the Real Estate industry. My mom has bought and sold homes by herself (For Sale By Owner) for as long as I can remember - and I loved the process. Naturally, I thought, I can do this… and get paid!  Simple, right?

I quickly realized the process is NOT so simple, and REALTORS® aren't just making money the easy way.  I realized why sellers need professional assistance, and why we get paid for our hard and valuable work.  I also realized that my mom had been selling her homes “successfully” for the last 20 years by pricing them 10-15% under market value, undercutting her competition and herself!  It had literally never occurred to her that she could have LISTED her home for what it was really worth, paid an agent 7% commission, and still come out ahead.  All without the headache of marketing it herself, dealing with unqualified buyers, open houses, security issues, etc.  She could have sat back and had someone do all of the work for her (see my list below), and actually ended up with more money.  On top of that, the majority of buyers who want to purchase a FSBO are looking to save money just like the seller is, which means they generally offer well below asking price for the obvious reason, they know you aren’t paying a commission so you you are willing to take less. Right? (Double whammy!) It made no sense. 

Can you sell your home By Owner?  Of course.  Does it work?  Sometimes.  Does it make more sense to not fight the system and use a REALTOR®? The majority of the time, it does.

Here is a simple breakdown, actually using the FSBO seller best-case scenario, meaning that you would still have “paid” an Agent, had you listed it professionally:

Property’s Fair Market Value: $200,000

Your FSBO Deal: $193,000 (We’re saving you the commission, Mr. Buyer!)

Your buyer’s offer: $188,000 (You aren’t paying a commission, Mr. Seller!)

Time on market: 2 months

Net: $186,000 (Sale price minus mortgage interest payment of $1000/mo.)

Listed w/REALTOR®: $199,900

Qualified offers: Buyer #1 - $198,000; Buyer #2 - $199,500; Buyer #3 - $200,000 

Accepted offer: $200,000 

Time on market: 1 week

Net: $185,750 (Sale price minus commission and one week of interest)

FACT:  You saved money selling your home By Owner ($250! - if you didn't pay to advertise online)

FACT:  Call me so I can do the following:

What your REALTOR® Actually Does for You - in 110 Steps

Below is a list of actions, processes, and procedures that are provided by a Full Service Agent in a successful Real Estate transaction in exchange for their commission. Please note that I left out steps 111-125 which include smoothing over seller/buyer/lender/inspector/closing issues (aka putting out fires), and steps 126-150 where I fended off every unqualified buyer and nosey neighbor that is trying to snoop through your home!

1. Develop presentation, anticipate seller questions and concerns
2. Research all comparable properties, active, sold, pending, recently expired
3. Research sales and market activity, such as days-on-market, price range, location
4. Download and review county assessment and tax records
5. Prepare comparative market analysis (CMA) and establish fair market value
6. Research public record for lot size, zoning, deed restrictions, legal ownership, etc
7. Prepare presentation and data for seller
8. Compile formal file for subject property
9. Discuss market conditions, projections, and trends with seller
10. Review Agent and Company credentials 
11. Discuss market analysis results with seller
12. Offer pricing strategy based on sellers needs regarding price and time-frame
13. Establish marketing plan that will meet the sellers needs and desires
14. Explain marketing plan and benefits
15. Explain what the agent does, what the brokerage does, hours and availability
16. Discuss agency relationships, commissions, contract dates
17. Review all clauses and addendums
18. Review title information
19. Measure square footage by room, floor, heated/non-heated, finished/non-finished
20. Confirm lot size and obtain survey if necessary
21. Note easements, encroachments, unrecorded property lines, etc
22. Prepare showing times and instructions
23. Obtain mortgage and loan information & verify with lender
24. Discuss buyer financing options with seller
25. Review current appraisal if applicable
26. Discuss HOA fees and contact manager for bylaws
27. Discuss and calculate utility usage for previous 12 months
28. Review water/sewer systems, obtain necessary documents
29. Provide lead based paint information and obtain seller disclosure
30. Provide radon information and obtain seller disclosure
31. Provide mold information and obtain seller disclosure
32. Obtain seller property disclosure
33. Compile list and advise on repair or maintenance items
34. Discuss benefits of Home Warranty
35. Install lockbox and obtain necessary entry keys and codes
36. Take photos of home
37. Edit photos and descriptions
38. Carefully craft an appealing listing description
39. Create virtual tour of home
40. Place yard sign
41. Fill flyer box
42. Place neighborhood directional signs
43. Perform “curb appeal” assessment and make suggestions
44. Discuss staging options
45. File and record all listing documents in seller file
46. Prepare detailed MLS sheet
47. Enter details into MLS Listing Database
48. Enhance property listing on REALTOR.com, Zillow and Trulia
49. Post property on Craigslist, Blog, and all Social Media
50. Create internet advertising and print advertising
51. Schedule REALTOR® Open House
52. Schedule public Open House(s) if requested
53. Coordinate showings with buyers and other Agents
54. Prepare mailing and contact list
55. Prepare showing log
56. Follow up on all showings for feedback
57. Order “just listed” marketing materials
58. Upload listing to company listing system
59. Mail out listing post-cards to neighbors
60. Provide marketing data to international buyers
61. Provide marketing data to relocation buyers
62. Print and stock marketing material as needed 
63. Be available on nights and weekend to coordinate showings
64. Meet weekly or as-needed to evaluate marketing
65. Update market analysis and discuss with seller
66. Receive and review all purchase contracts
67. Evaluate offer and prepare “net sheet” for seller
68. Counsel seller on offers and components of
69. Discuss qualifications of buyer with other agent
70. Obtain pre-qualification letter
71. Obtain and deliver sellers disclosures
72. Negotiate final purchase conditions on sellers’ behalf
73. Schedule date for loan approval and closing
74. Prepare and deliver counter offers or amendments  
75. Record and deposit earnest money into escrow
76. Deliver contract to closing attorney or title company
77. Deliver executed agreement to buyer and seller
78. Deliver contract to lender
79. Discuss handling of other offers during pending period
80. Update all marketing materials and MLS to Pending status
81. Order desired inspections including radon, whole house, mold, termite 
82. Order well and septic inspections if needed
83. Track buyer’s loan progress
84. Follow loan process through to underwriter
85. Track progress weekly through close
86. Relay final approval
87. Coordinate home inspections
88. Discuss inspection report with seller
89. Explain seller responsibilities and requirements
90. Negotiate repairs or changes to contract as needed
91. Refer trustworthy service providers if needed
92. Confirm signed contract by all parities
93. Coordinate closing with buyer, seller and lender
94. Update files accordingly for closing
95. Ensure all parties have forms and info needed to close sale
96. Select closing location, date, time and confirm with all parties
97. Assist in solving title issues or obtaining death certificate
98. Coordinate final walk-through
99. Request final closing figures (HUD settlement) from title company or attorney
100. Review for accuracy and forward to all parties
101. Provide home warranty info if applicable
102. Review closing documents for errors
103. Forward closing documents to absent parties
104. Provide earnest money check to closing agent
105. Coordinate seller’s next closing to avoid timing issues
106. Refer seller to agent, if moving outside area
107. Change MLS status and all files to Sold status
108. Follow up after closing about any questions or concerns
109. Clarify and resolve conflicts
110. Provide continuous follow up and provide any requested information

My advice: STOP THE INSANITY - HIRE A REALTOR®

Ashley Hamerlinck is a licensed REALTOR® in Illinois & Iowa.  For more information on my personalized 15-step marketing plan, email me at ashleyhamerlinck@gmail.com, visit my website www.ashleyhamerlinck.com, or find me on facebook.