Scroll and select from other pages on this site! Select from the List Below! --> Realtor's Biography --> Featured Properties --> Are You Buying? --> Are You Selling? --> Market Pulse --> Frequently Asked Questions --> Back to the Home Page Helping Consumers Understand the Complexities of Today's Real Estate Transaction (REALTORS®: Working with Sellers) Pro-listing ("pre-counseling") Discussion and explanation of agency relationships. Obtain signed Agency Relationships in Real Estate Transactions form. Find out what the seller's expectations are, wants, desires, motivation for moving, price, marketing plan: (Dual interview process) What are the sellers looking for in an agent Compensation in a real estate transaction, including the listing company's policy for paying co-op agents. Including a discussion of Code of Ethics Standard of Practice 1-12, Variable Commissions, etc. What is the seIler's polition: i.e. relocation, move-up, retirement Marketing Plan presented Present a CMA -- Why they are the best agent/broker/ sales pitch Listing the Property (Post-Listing Counseling) Seller Disclosure and related forms Truth-in-housing disclosure requirements (if applicable) Sellers Property Disclosure Statement Resale Disclosure Certificate (if applicable) Environmental Disclosures (if applicable) (wells, septic systems, Methamphetamine, lead paint, underground storage tanks, wetlands) Property Tax preferences disclosures Code compliance issues Seller inspections Abstract or owners title insurance policy and location. Address issues of the house (Repairs and/or replacement - get quotes for repairs/replacements) Verifying data such as selling price, mortgage amount, pre-payment penalties, taxes, assessments, and other issues with the house Tax implications (1031 exchange, valuation exclusions, etc.) Net Proceeds Marketing plan: Services that the agent brings to the sellers Valuation issues - properly pricing the property Marketing time Neighborhood sales and types of financing Current statistics/inventory Market expectations (i.e. first time home buyers may use FHA financing requiring seller to pay for some repairs) Staging Advertising/signs Open houses Virtual tours Promotional flyers/brochures Closing time MLS exposure Explain company policies on cooperation and compensation How showings are arranged through listing office and who will be the contact person if listing agent is sick, out of town or otherwise unavailable. Electronic lock box key security system Seller availability for potential time sensitive issues regarding purchase agreement negotiations, removal of contingencies, inspections, etc. On-the-Market Counseling Industry trends, interest rates, marketplace issues Housing supply in immediate area Number of showings for their house versus other homes in the immediate area Pre-Offer Consultation How will offers be handled (faxed, buyer or buyer's agent present, etc.). Will an attorney be reviewing offers? Explain company policy on multiple offers and obtain seller's approval Counter offers versus "sleeping on it" Explain pros/cons of waiting to make a decision on offers received. Risk of losing buyer if long delays in acceptance or counters Contingencies and inspections: Pros/Cons of accepting/rejecting offers that include contingencies? Determine buyer's ability to purchase and consummate the transaction Pre-approved versus pre-qualified qualification Estimate net proceed sheet Capital gains and tax implications Binding purchase agreements, execution and acceptance. Oral agreements are not binding. Presenting/Countering and Offer Acceptance Analyzing the offer Analyzing the offer. What is flexible, what is not. Assist seller in understanding the risks and rewards of countering/accepting a particular offer. (Helping them answer, "what should I do?") Walking through the contract with them to analyze and understand the proposal. Earnest Money Purchase Price Personal Property Financing Issues and fraudulent arrangements Contingencies (House stays on market) Inspections (What happens during this time period/consequences/what can happen as a result of the inspection) Closing date Possession/Move-In Agreements Risks of multiple offers versus only one offer Reviewing the integrity of the other agent involved Verification of mortgage pre-approval strength of buyer anticipate any potential problems Appraisal and full-underwriting approval Net proceeds: bottom line for the seller Final Walk-thru review Negotiate the offer Due diligence/time is of the essence Obtain proper signatures Provide copies to seller Post Purchase Agreement Follow through and stay on top of all aspects Inspection time frames Work orders: negotiated, completed and re-inspected Buyer's mortgage lender follow up Verify appraisal has been ordered Title: locate and provide to title company Schedule closing date, time and location and provide necessary documents to the closing agent. Provide necessary documents to lender for closing If a Common Interest Community sale, make sure the Disclosure Statement or Resale Disclosure Certificate and other required documentation are delivered to the buyer. Track the purchaser's right of rescission period. Remind seller buyer has right to a walk through prior to closing (generally the day of or the day before closing) Negotiate any last minute complications/problems Obtain and verify mortgage information and pay-off requirements Review and summarize the purchase agreement for the seller Counsel seller on what to expect at closing What to bring to closing What to be prepared for Review net proceeds, financials, etc. Drivers license (photo ID) Social Security Numbers Previous addresses Preview closing documents Closing the Sale Attend the closing Go through the HUD with the seller and match with estimate proceeds Credit for anything (Money transfers for bad carpet, etc.) Watch for fraudulent financing proposals that could bring liability to seller Handle any last minute issues-all known conflicts to be resolved by a written agreement, including escrow agreements to avoid adverse consequences. Home Warranty programs. Make sure they are addressed. Exchange keys, garage door openers and final information about the property Verify possession date and time Post Closing Follow-up Closure Survey Any questions/problems/concerns Send thank you note and/or gift During the pendency of the transaction and after the closing, real estate agents can perform a significant role in resolving disputes and moving the transaction forward and solving the problems before they escalate. However there does come a point in time when an agent will have to back off and suggest that the parties consult their own attorney. Dual agents are in a particularly awkward position when problems arise because they represent both parties. The dual agent can be an information disseminator but must not be a negotiator. Thus when a dual agent is involved and a problem starts to develop, the dual agent may have to refer the parties to an attorney earlier then they might if they were serving as an exclusive agent. These general guidelines provide an overview of activities completed by REALTORS®: in many real estate transactions. Individual transactions may require additional or fewer services depending upon circumstances. Dale Lundblad, Associate BrokerB.I.C. Realty Hwy. 53 and River St.P.O. Box 1165Cook, MN 55723 (218) 666-5352