What a Realtor Does for You

The Critical Role of The Realtor in The Real Estate Transaction

Many home buyers and sellers are not aware of the true value that a Realtor provides during the course of a real estate transaction. Many people, in fact, are not cognizant of the expertise, professional knowledge, and just plain challenging work that goes into bringing about a successful real estate transaction.


A multitude of important services and steps required in a real estate transaction are carried out by the Realtor or the brokerage staff. Most of these steps have traditionally been viewed simply as part of a Realtor's professional responsibilities to the client. But, without them, the transaction could be placed in jeopardy.

Listed below are typical actions, research steps, processes, and review stages necessary for a successful residential real estate transaction that are normally provided by a full-service real estate brokerage (such as Aiello & Associates) in exchange for their sales commission. Depending on the transaction, some of these steps may take minutes, hours, or even days to complete, while some may not be needed.


The list is by no means an attempt to set forth a complete list of services, as these can vary within each brokerage and each market and some transactions may not require every step. Many Realtors routinely provide a wide variety of additional services that vary depending on each transaction.

  • The Realtor Commitment

    The Realtor Commitment

    The professional commitment of a Realtor is to ensure that a seller and a buyer are brought together in an agreement that provides each with a transaction that is fair and equitable. The motivation is easy to understand. For most full-service brokerages, they receive no compensation whatsoever unless and until the sale closes.


    By contrast, there are firms that offer limited services in exchange for an up-front flat fee or offer a menu of pay-as-you-go or a la' carte options. Other real estate firms may offer a sliding scale ranging from limited to full service. In these cases, the compensation of the Realtor is based on the reduced services provided, with the seller bearing full responsibility for all of the other steps and procedures (which are normally conducted by a full-service real estate firm) in the selling process.


    Note: Not every real estate agent or broker is a Realtor. The term and the familiar block "R" logo are trademarked by the National Association of Realtors and can legally be used only by those that are Realtor members through their local association of Realtors.


    While all Realtors are also state-issued licensees as agents or brokers, a 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. Real estate licensees (those that have a state-issued license but are not members of a Realtor association) are not bound to the ethical practices and principles set forth in the Realtor Code.


    In addition, Realtor associations offer a wealth of training courses to their member Realtors, to help assure that Realtors serve their customers with the level of skill, knowledge and attention to detail required in today's real estate transaction. The continual training provided to Realtors underscores the importance of having help and guidance from someone who fully understands the process - a Realtor.


    For peace of mind, ensure that the individual seeking to represent you in a real estate transaction is not just a real estate licensee, but also a Realtor.

  • Pre-Listing Activities

    • Make appointment with seller to discuss listing details
    • Review pre-appointment questions
    • Research all comparable currently listed properties
    • Research sales activity for past 6 – 12 months through the Multiple Listing Service (MLS) and/or public records databases
    • Research "Average Days on Market" for the type of property, price range and location
    • Download and review property tax roll information
    • Prepare "Comparable Market Analysis" (CMA) to establish fair market value
    • Obtain copy of the property plat map and/or subdivision/complex lay-out
    • Research property's ownership and deed type
    • Research property's public record information for lot size and dimensions
    • Research property’s living space square footage
    • 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 for seller
    • Perform exterior Curb Appeal Assessment of subject property
    • Compile and assemble formal transaction file for property

  • Listing Appointment Presentation

    • Give seller an overview of current market conditions and projections
    • Present CMA Results to Seller (Comparable properties: Sold/Active/Expired)
    • Offer pricing strategy based on professional judgment and interpretation of current market conditions
    • Discuss marketing goals with seller
    • Explain market power and benefits of Multiple Listing Service (MLS)
    • Explain market power of web marketing, Internet Data Display and Realtor.com
    • 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
    • Explain different agency relationships and determine seller's preference
    • Review and explain all clauses in Listing Contract and Addendum and obtain seller's signature

  • Obtain from property owner/seller copies of the following

    • Certified survey is applicable and if available
    • House plans, if applicable and available
    • Current mortgage loan(s) information: companies and loan account numbers
    • Homeowner Association: Monthly statement showing HOA name & monthly dues
    • Homeowner Association: Information on special assessment (monthly fee, balance, etc.)
    • Homeowner Association: Property management company contact information
    • Compile list of completed repairs and maintenance items
    • Obtain utilities providers contact information

  • Discuss and confirm with seller

    • Curb Appeal Assessment: provide suggestions to improve property marketability
    • Property showing instructions for buyers' agents and agree on showing days and times
    • Discuss possible buyer financing alternatives and options with seller
    • Review Current appraisal (if available)
    • Verify security system, current term of service and whether owned or leased
    • Prepare detailed list of property's items which are Included or Excluded with the Sale
    • Prepare detailed list of property amenities and assess market impact
    • Explain benefits of providing a 1-year Homeowner Warranty plan for the buyer
    • Installation of lock box with keys for agents to access for showings
    • Have extra key made for key box
    • Installation of For Sale sign & riders
    • If property has rental units involved:

            a) Inform tenants of listing and discuss how
           showings will be handled

            b) Verify current rents and security deposits

            c) Obtain copies of all leases

            d) Obtain Tenant Estoppel Certificates

    • If seller is purchasing a replacement property in another area not covered by agent – refer seller to a local area Realtor (if applicable)

  • Once Property Is Under Listing Agreement

    • Take listing photos
    • Review current title information
    • Note any and all unrecorded property lines, agreements, easements
    • Have escrow order mortgage loan(s) pay off demands
    • Check if loan is assumable and if any specific requirements
    • Send escrow order to Escrow company (to open escrow after purchase agreement has been executed)
    • Have escrow order Homeowner Association documents package for buyer
    • Assist seller with completion of Seller's Disclosure forms

  • Enter Property in Multiple Listing Service (MLS) Database

    • Prepare MLS Profile Sheet - Realtor is responsible for quality control and accuracy of listing data
    • Proofread MLS listing data for accuracy - including proper placement in mapping function
    • Enter property data from Profile Sheet into MLS Listing Database
    • 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

  • Marketing the Listing

    • Upload listing on our company website
    • Submit listing to other Internet real estate sites (syndication)
    • Email listing information to Aiello & Associates agents and other agent contacts
    • Install electronic key box (if authorized by owner) and program with agreed-upon showing time frames.
    • Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability
    • Coordinate showings with owners, tenants, and other Realtors
    • Provide local market data to buyers coming from a referring agent
    • Provide local market data to buyers coming from international relocation networks
    • Provide and post “Special Feature” fliers at the property (if applicable)
    • Schedule open houses
    • After property showings; e-mail agents to request feedback from them and their clients
    • Keep up to date with local market activity
    • Review key box showing activity reports to determine home showing traffic
    • Discuss key box showing activity reports and feedback from showing agents with seller to determine if changes can be made which will accelerate the sale
    • Communicate regularly with seller to give updates and to discuss marketing and pricing
    • Promptly enter price changes in MLS listing database
    • Properly enter other listing changes in MLS listing database

  • The Offer and Contract

    • Review all Purchase Offers received by buyers or buyers’ agents
    • Prepare a “net sheet” for each offer for seller 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
    • Deliver Seller’s Disclosures to buyer’s agent or buyer upon request and prior to offer if possible
    • Confirm buyer is pre-qualified by calling lender/loan officer
    • Obtain buyer’s pre-qualification/pre-approval letter from lender/loan officer
    • Negotiate all offers on seller’s behalf, setting time limit for loan approval, contingencies and closing date
    • Prepare and convey any counter offers, acceptance or amendments to buyer’s agent
    • Buyer’s initial Earnest Money Deposit (EMD) (if delivered directly to Aiello & Associates):

            a) Record buyer’s check in Trust Account log

            b) Promptly deposit buyer’s check in Broker’s
           Trust Account

            c) Promptly Deliver check (from Broker’s Trust
           Account) for buyer’s deposit to escrow
           company

    • Discuss with seller “Under-Contract” property showing restrictions
    • For accepted Purchase Contract:

            a) Provide copy of buyer signed Purchase
           Contract and any Addendum's to seller

            b) Provide copy of seller signed Purchase
           Contract and any Addendum's to Selling Agent

            c) Provide copy of fully executed Purchase
           Contract and any Addendum's to lender

            d) Provide copy of fully executed Purchase
           Contract and any Addendum's to escrow

            e) Keep copy of fully executed Purchase
           Contract and any Addendum's in transaction
           file

    • Advise seller on handling any additional purchase offers received between the current accepted purchase offer and closing
    • Change property listing status in MLS from Active to “Pending”

  • Property Inspections (Seller to do)

    • Order and coordinate Pest Inspection; review report and address repair items
    • Order and coordinate Mold Inspection; review report and address repair items (if required)
    • Order home warranty plan (if applicable) and include seller’s coverage (if applicable)

  • Tracking the Loan Process

    • Confirm verifications of deposits and buyer’s employment have been returned
    • Contact lender weekly to ensure loan 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
    • 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
    • Confirm repair costs and oversee completion of all required repairs on seller’s behalf, if needed

  • The Appraisal

    • Coordinate appraisal appointment
    • 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 questions arise

  • Closing Preparations and Duties

    • Contract is signed by all parties
    • Coordinate closing process with buyer’s agent and lender
    • Update closing forms and files
    • Ensure all parties have all forms and information needed to close the transaction
    • 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.)
    • Work with buyer’s agent in scheduling and conducting buyer’s final walk-through prior to closing
    • Request final closing figures from closing agent (or title company)
    • Receive and carefully review closing figures to ensure accuracy
    • 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 copy of Home Warranty plan to buyer’s agent and seller
    • Carefully review all closing documents for errors
    • Review documents with closing agent
    • If seller is purchasing a replacement property; Coordinate this closing with seller’s next purchase and resolve any timing issues
    • Ensure closing documents package and net proceeds check are delivered to seller
    • Coordinate the delivery of proper keys to buyer
    • Remove key box and for sale sign
    • Change MLS status to Sold (enter sale date, price, selling broker and agent’s ID numbers, etc.)
    • Close out listing in transaction management program

  • Follow Up After Closing

    • Answer questions about filing claims with Homeowner 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

Common REALTOR® Responsibilities:

For Client

  • Schedule Showing appointments
  • Schedule Listing Appointments
  • Deliver buyer’s Earnest Money Deposit (EMD) on time
  • Coordinate property inspections
  • Keep up with loan process
  • Ensure Home Warranty Protection plan is ordered
  • Negotiate all counteroffers
  • Schedule and coordinate closings
  • Deliver all signed contracts and disclosures
  • Keep the transaction on track and ensure timely closing
  • Provide educational materials to clients and prospective clients
  • Answer phone calls promptly
  • Return missed phone calls promptly
  • Reply to e-mails promptly
  • Follow up with website inquiries
  • Run comparable property searches for Buyers and Sellers
  • Show properties
  • Determine accurate property list pricing
  • Meet Appraiser at property (if needed)
  • Meet Inspector(s) at property (if needed)
  • Provide copies of fully executed contracts to all parties
  • Review all property inspection reports and coordinate repair appointments
  • Keep clients updated throughout the transaction process
  • Provide property comps for the appraiser (if needed)
  • Dispute low appraisals (if the appraisal value is deemed to be incorrect)
  • Review estimated Closing Disclosure
  • Review updated Closing Disclosure prior to closing
  • Review Preliminary Title report to ensure all is clear and nothing will affect transfer of property
  • Review and go over the Purchase Contract to clients
  • Provide advice on the offer price
  • Update clients on changes in market conditions
  • Verify completion of all property repairs
  • Ensure the buyer loan is set up for funding
  • Confirm with escrow that transaction is closed and recorded with the County
  • Schedule and attend the final walk-through inspection
  • Verify delivery of Title Commitment
  • Remind clients to schedule for all utilities to be turned on/off
  • Keep MLS listing data up to date
  • Coordinate Open Houses
  • Follow up with past clients

Internal

  • Maintain Required Continuing Education
  • Attend live classes or webinars on specific topics
  • Attend real estate and mortgage seminars
  • Maintain E&O (Errors and Omissions) Insurance
  • Keep up to date with new laws and regulations

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