Buyer’s Agent Role

Why Was This List Prepared?

Surveys show that many homeowners and homebuyers are not aware of the true value a REALTOR® provides during the course of a real estate transaction.

At the same time, regrettably, REALTOR® have generally assumed that the expertise, professional knowledge, and just plain hard work that go into bringing about a successful transaction were understood and appreciated.

Many of the most important services and steps are performed behind the scenes by either the Realtor® or the brokerage staff and traditionally have been viewed simply as part of their professional responsibilities to the client. But, without them, the transaction could be placed in jeopardy.

This publication seeks to close that gap.

Listed on the following pages are nearly 200 typical actions, research steps, processes, and review stages necessary for a successful residential real estate transaction and normally provided by a full service real estate brokerage and for which they are entitled to fair compensation.

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.

The REALTOR® Commitment

Through it all, the personal and professional commitment of the REALTOR® is to ensure that a seller and buyer are brought together in an agreement that provides each with a “win” that is fair and equitable.

The motivation is easy to understand. For most full-service brokerages, they receive no compensation unless and until the sale closes.

By contrast, there are firms that offer “limited services” in exchange for an up-front flat fee, or perhaps offer a menu of pay-as-you-go or “a la’ carte” options. Some even offer a sliding scale ranging from limited to full service. In these cases, the compensation of the REALTOR® is based on these reduced service levels with the seller bearing full responsibility for all the other steps and procedures in the selling process. In short, the marketplace truism is that “you get what you pay for.”

A Variety of Choices

The variety of brokerage business models in today’s real estate industry affords the homeowner a greater range of options than ever before.

But no matter which option is chosen, before signing a Listing Agreement or otherwise engaging the services of a REALTOR® and agreeing to compensate them, homeowners should understand exactly what services will, or will not, be provided.

Why Use A REALTOR®?

Not every real estate agent or broker is a REALTOR®. That term and the familiar Block “R” logo are trademarked by the National Association of REALTOR® and can only be used by those are REALTOR® members through their local association of REALTORS®.

While all REALTORS® are state-issued licensees as agents or brokers, the major difference between a “real estate licensee” and a REALTOR® is that REALTORS® have taken an oath to subscribe to a stringent, enforceable Code of Ethics with Standards of Practice that promote the fair, ethical and honest treatment of all parties in a transaction. Non-member licensees have taken no such oath and are not morally bound to the ethical practices and principles set for in the REALTOR® Code.

For that extra measure of peace of mind, ensure the individual seeking to represent you is both a real estate licensee and a REALTOR®. Visit the Orlando Regional REALTOR® Association’s website, orlrealtor.com, for a searchable list of our REALTOR® members.

The Critical Role of the REALTOR®

Listed here are nearly 100 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 – a REALTOR®.

And never forget that REALTORS® are pledged to uphold the stringent, enforceable tenets of the

REALTOR® Code of Ethics in their professional dealings with the public. Not every real estate licensee holds REALTOR® membership. Make sure yours does!

The role of a Buyers’s Agent:

1. Ask questions to learn what type of home buyer is looking for.

2. Explain agency disclosure.

3. Explain the benefits of being pre-approved by a lender.

4. Have the Buyer obtain a Pre-Approval letter from the lender to be used when contract is submitted.

5. Search the MLS and other resources to find properties that fit the Buyer’s criteria.

6. Send the Buyer all the homes that are available that fit search criteria.

7. Set up a time to meet with the Buyer to go over property choices, likes and dislikes.

8. Narrow down property choices to the best properties that fit the Buyer’s criteria.

9. Schedule appointments to preview each property before showing property to the Buyer. This will avoid wasting the Buyer’s time.

10. If the property is owner or tenant occupied, schedule the best time to view the property that is convenient for the occupant.

11. Obtain gate codes for gated communities, information on where to find the key and other showing instructions.

12. While previewing the properties, take notes and report back to the Buyer.

13. After reviewing the notes with the Buyer, schedule appointments at each property that the Buyer is interested in.

14. If the property is owner or tenant occupied, schedule the best time to view the property.

15. Print out copies of the MLS sheets with all property information. Pull school information, directions from each property to the school (although school districts are subject to change), distance to work or anything that the Buyer may be interested in.

16. Create rating system for each home.

17. Decide on a place to meet the Buyer.

18. View properties.

19. While viewing properties point out community amenities and areas of interest such as stores, restaurants, schools, parks, etc.

The Offer and Contract

21. Once a property is found that is of interest to the Buyer, a contract will be written.

22. I will pull comparable properties to be sure we are making the best offer possible.

23. If the offer is low, I will prove my case by using the comps.

24. Go through the entire contract line by line to be sure the Buyer is aware of all terms, contingencies and due dates.

25. Submit offer in person to Seller’s agent.

26. Negotiate on behalf of the Buyer.

27. Evaluate counter offer, if there is one.

28. Contact Seller’s agent to discuss offer.

29. Ask Seller’s agent for the Seller’s Disclosure for the property.

30. Negotiate all offers on Buyer’s behalf, setting time limit for loan approval and closing date.

31. Prepare and convey any counteroffers, acceptance or amendments to Seller’s agent.

32. Check with Seller’s agent and Title company that copies of contract and all addendums have been sent to closing attorney or title company.

33. Obtain Buyer’s earnest money deposit and deliver to the Seller’s agent to deposit into escrow account.

34. Provide the Buyer with list of inspection companies, appraisers and any other vendors that are needed.

35. Verify that the Buyer has scheduled appointments for inspection(s) and appraiser.

36. Deliver copies of fully signed Offer to Purchase contract to Buyer.

37. Fax/deliver copies of Offer to Purchase contract to Selling Agent.

38. Fax copies of Offer to Purchase contract to lender.

39. Provide copies of signed Offer to Purchase contract for office file.

40. Verify that Seller has changed status in MLS to “Sale Pending.”

41. Assist Buyer with obtaining financing, if applicable and follow-up as necessary.

42. Request a septic system inspection, if applicable.

43. Verify that a copy of the septic system inspection is sent to Lender and Buyer.

44. Verify that a Well Flow Test Report copy is sent to Lender and Buyer.

45. Verify termite inspection ordered.

46. Verify mold inspection ordered, if required.

Tracking the Loan Process

48. Confirm Verifications Of Deposit & Buyer’s Employment Have Been Returned.

49. Follow Loan Processing Through To The Underwriter.

50. Contact lender weekly to ensure processing is on track.

51. Relay final approval of Buyer’s loan application to Seller’s Agent.

Home Inspection

53. Coordinate Buyer’s professional home inspection with Seller.

54. Review home inspector’s report.

55. Ensure Seller’s compliance with Home Inspection Clause requirements.

56. Verify that Seller’s agent is working with the Seller to hire reliable contractors to perform any required repairs.

57. Verify that completion of all required repairs are made.

The Appraisal

59. Verify that an Appraisal has been ordered.

60. Follow-Up On Appraisal.

61. Present Appraisal to Buyer.

62. Negotiate the price of the home if the appraisal comes in lower than the agreed upon sales price.

63. Present Appraisal to Seller’s agent.

Closing Preparations and Duties

65. Contract Is Signed By All Parties

66. Coordinate closing process with Seller’s agent and Lender.

67. Update closing forms and files.

68. Ensure all parties have all forms and information needed to close the sale.

69. Select location where closing will be held.

70. Confirm closing date and time and notify all parties.

71. Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death Certificates.

72. Work with Seller’s agent in scheduling and conducting Buyer’s Final Walk-Thru prior to closing.

73. Research all tax, HOA, utility and other applicable prorations.

74. Request final closing figures from closing agent (attorney or title company).

75. Receive and carefully review closing figures to ensure accuracy of preparation.

76. Request copy of closing documents from closing agent.

77. Confirm Buyer has received title insurance commitment.

78. Confirm Buyer has obtained Home Owners Insurance for day of closing.

79. Verify that “Home Owners Warranty” is available at closing.

80. Review all closing documents carefully for errors.

81. Forward closing documents to absentee Buyer as requested.

82. Review documents with closing agent (attorney).

83. Verify that Seller’s agent is bringing earnest money deposit check from escrow account to closing agent.

84. Request that Seller’s agent changes the MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.

Follow Up After Closing

86. Answer questions about filing claims with Home Owner Warranty company if requested.

87. Attempt to clarify and resolve any conflicts about repairs if buyer is not satisfied.

88. Respond to any follow-up calls and provide any additional information required from office files.

 

Arizona Buyer’s Advisory (PDF) – http://aaronline.com/documents/buy_advis.pdf

 

When you need the expertise of a professional REALTOR® in Phoenix, please contact me. Your satisfaction is, and always will be, my top priority!

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