Home Seller s Guidebook - Loading slideshow 100_ by yaosaigeng


									 Home Seller’s Guidebook
Liz & Justin Thayer – Eugene Area Realtors®
    Team Thayer – Keller Williams Realty
           2644 Suzanne Wy
           Eugene, OR 97408
          541-543-7287 -Justin
Deluxe Marketing Plan – 6% or higher commission
 Print Advertising
       • Homeseekers: We run until sold
       • Flyers sent to every Realtor in your area
       • Flyers for your home (If deemed beneficial)
 Web Advertising
       • RMLS (Multiple Listing Service)
       • Placement on our websites; Thayersells4u.com,
         Teamthayer.com and integrityhomesonline.com
       • Listing on Cragslist.com
       • Listing on Homesandland.com
       • Listing on KW.com
       • Listing on Justrealestate.com
       • Listing on Oodle.com
       • Listing on Classifieds.com
       • Listing on Googlebase.com
       • Listing on Realtor.com
       • Listing on Registerguard.com
       • Listing on Zillow.com
       • Listing on Windowslive.com
       • Listing on Facebook.com
       • Your home will also be on every web site using the IDX system to
         search for homes. The number of sites using IDX searches is infinite.
       • Automatic Feedback System with mass email to all agents who
         have shown house announcing changes
    Optional Services
       • Open House with announcement on website and through
       • Broker Open Houses
       • Register Guard Open House ads (When Necessary)
        TOP 10 Reasons to choose Team Thayer
1. We are full time real estate professionals who are in the top 10% of all agents in
   Lane County
2. We Have a combined 25 years of Sales & Marketing Experience so we can sell
   your house for more money because we know how to negotiate and overcome
3. We have a marketing & technology specialist within our team to customize
   (Pictures, Ads, Website, and Flyers). We know how to reach today’s Internet-
   Savvy Home Buyers with our comprehensive website, TeamThayer.com
4. We use an automated feedback system so that you & I will know what potential
   buyers & agents think of your home and can make any adjustments that are
5. We are Successful Real Estate Investors actively buying, selling, building &
   renting homes. We can provide our knowledge & expertise within these areas of
   Real Estate as an added free service.
6. We are experienced at staging homes to sell. We can offer you our free home
   staging advice so your home will show at it’s best
7. We work as a team so all of your needs will be met through teamwork. You will
   have the use of a Listing Specialist, Buyer's Specialist and Marketing Expert &
   Office Manager
8. We have years of experience with real estate financing, so we can assess buyer’s
   ability to afford your property & help them locate the best places to obtain
9. We keep ourselves informed on the market in your neighborhood & price range
   so we have the market knowledge to price your home competitively.
10. You will receive personalized service from a member of Team Thayer. We will
  keep you up to date on what is happening with your real estate purchase or sale.
   Team Thayer’s Automated Feedback
            System Works!!
• Our promise is to put in place a feedback system that keeps
  you informed and in the loop with 24/7 access.
• We will sell your home faster and for more money if we can
  make adjustments to price, staging, showing instructions, etc.
  based on feedback from agents and potential buyers
• Both of us can see what potential buyer feedback has been left
  on your home, and are then able to make adjustments based on
  that feedback.

*Above is an example of what your feedback will look like itemizing agents who have shown your property and
                                      listing their detailed feedback.

                Ins de                                                 Outsiide
                                                                        Outs de
CLEAN!CLEAN ! Have the carpet
CLEAN!CLEAN                                           Walk the property with a pad and
shampooed;                                            pencil. List anything that you think is
Wax the floors; wash the walls, windows,
blinds, drapes and lighting fixtures. Consider        less than satisfactory without regard to
engaging a cleaning service, recognizing that it      cost or time. You can review the list
is a justified moving expense.                        afterwards to determine what you can
                                                      and can’t repair.
KITCHEN AND BATHROOMS                  Clear off
counter tops. Leave your canisters and little else.
Maximize the available counter space. These           THE HOUSE
                                                      THE HOUSE             Take a close look as you walk the
rooms should be gleaming. If unsightly, have the      property. Clean anything that looks unkempt or dirty;
tub re-caulked and remove mineral deposits and        repair or replace anything that looks loose, dingy,
                                                      rusted or broken. Make sure the door bell works.
grime from the shower walls. Clean the stove,
                                                      Replace a tired-looking mail box; clean the exterior
microwave and refrigerator.                           light fixtures and wash the windows. Try to spot
                                                      hanging or rusty gutters, crooked antenna, loose
PRIMARY STORAGE AREA                                  shingles or shutters.
garage, its time as come to be liberated.
Remember, you can do it now and benefit with a
                                                 THE YARD
more attractive home on the market, or you can THE YARD Turn and weed the beds; trim the
do it several months from now, in the process of trees and shrubs. Lay in ground cover. Mend the fence,
                                                 fix the gate latch. Pick up litter. Consider a
moving when there is no advantage. Do it now!
                                                      landscaping/lawn service.
REPAIRS Identify and repair dripping
REPAIRS                                               OUTDOOR FURNITURE
                                                      OUTDOOR FURNITURE                        Examine and
faucets, sticking or creaking doors, etc. When
                                                      spot paint your out door furniture. If it’s rusty or un-
people see areas of disrepair they begin to
                                                      repairable consider disposing of the pieces.
wonder whether there may be other unseen
                                                      FRONT ENTRY
                                                      FRONT ENTRY               It’s the first thing your buyers
CLOSETS Remove out of season clothing.                see as they stand and wait for the door to open. It’s
                                                      worth the extra effort to spruce it up.
Organize your clothing and the shoes on the
floor. Remove all clutter from cabinets and
                                                      THE GARAGE
                                                      THE GARAGE               The time has come. Discard
                                                      virtually everything in the garage that hasn’t been used
FURNITURE The less furniture, the larger a            for a year. Wash it down.
room appears to be.

A LIGHT APPEARANCE                                               • Think in terms of a home
everything to lighten the appearance of the
home. Raise the blinds, open the drapes and use
                                                              that is sparkling clean, uncluttered
the light colors. Repaint any room beginning to                           and spacious
look shabby.
                 TEAM THAYER SHOWS HOW
                 USING A REAL ESTATE
                   BROKER WORKS!
        The Reall Esttatte Broker iis fiive ttiimes more successfull
        The Rea Es a e Broker s f ve mes more successfu
                tthan an iindiiviiduall iin selllliing homes..
                  han an nd v dua n se ng homes


                                              LISTED AND
                                                SOLD BY
                                             REAL ESTATE
     D D LD     E
                            ET                          LD
                                                      SO IT MYSELF
  R E      VE     O E YIN O P Y
TU N D IT O R TO H M BU G C M AN                      TR D AG N BU SO IT M
                                                        IE   E T T LD     YSELF
  IE      LL
               YSE BU H TO U AG N

*Keep in mind that when you are selling your house without an agent that potential buyers will want to
automatically deduct 6% off the sales price to compensate for the fact that there aren’t any real estate
agents involved, and that other comparable homes most likely sold through a real estate agent.

The real estate industry has proven itself to be the very best and most effective system to market
residential real estate. We have marketing tools that are not available to a home owner, including;
 1) the MLS, 2) Continuing advertising programs, 3) national relocation system and 4) personal contacts
with many other professional real estate brokers.
                 PREPARING FOR A SHOWING
It’s very important that your home shows well.       CLEAN AIR Keep air fresheners in
                                                     CLEAN AIR
We’re also aware that it can’t always be perfect.    closets, bathrooms and kitchen. Be
After all, you and your family must live there too.  especially careful to keep kitchen odors
Develop a routine that will allow you to pick up and fresh: coffee brewing or cinnamon coffee
be prepared to show in a reasonable period without cakes baking in the oven have a lasting,
duress…a 45 minute countdown, for example. This      inviting effect.
means that certain things must be done in advance.
For example, beds should be made up first thing in
                                                     MUSIC,, MUSIC,, MUSIC Perhaps you
                                                     MUSIC MUSIC MUSIC
the morning and dirty dishes placed in the
dishwasher after use so that you needn’t rush        can’t have something baking in the oven
around tending to this matter at the last moment.    every time, but soft, pleasant background
This way you can prepare for each showing in an      music may be very effective.
organized, un-hassled routine.
                                                    FIREPLACE A warm, cozy fire may be
BEFORE EACH SHOWING…                                just the extra touch that turns the trick.

                                                    AIR CONDITIONING If the weather is
                                                    AIR CONDITIONING
PICK UP EVERY ROOM Check counters,
PICK UP EVERY ROOM                                  warm and sultry, have it operating.
floors, halls and stairs. Straighten up or remove
newspapers, magazines, mail, toys, clothing,        THE BATHROOMS Keep a set of fresh,
                                                    THE BATHROOMS
recreation gear, snack glasses and dishes.          attractive towels in each room that you can
                                                    change instantly.
TURN ON ALL LIGHTS Even those in closets
and storage rooms. Electric lights have an       THE ENTRYWAY It’s the first and last
                                                 THE ENTRYWAY
amazing capability for creating an illusion of   impression that your buyers will have of
lightness, airiness and largeness.               your home – make it a good one! Check it
                                                 regularly for sharpness.
BLINDS                                           Keep your priivatte iinfformattiion priivatte..
                                                 Keep your pr va e n orma on pr va e
Do all hat you can to create a bright and light
ambiance. THE BEDROOMS Make up the               Before you have a showing, lock down your
beds, neatly and attractively, early in the      family computers, and put away sensitive
morning. This is a job you don’t want to have to information, bills, and paperwork. If you
do when you learn that the buyers will be there  have a cabinet in your home office that
within the hour.                                 locks, use it. Although most home buyers
                                                 couldn't care less whether you're carrying a
THE KITCHEN Be sure all countertops are
THE KITCHEN                                      $4,000 balance on your Visa card, there are
clear and “squeaky clean”. Wipe down             people who pretend to be home buyers
appliances. Be sure all dishes are in the        simply to steal items and information from
dishwasher or cleaned and put away. The sink     unsuspecting homeowners.
should be clear and clean.
                                        “THE SHOWING”
It is always best to leave your home when it is being shown, but
if you cannot then don’t worry. Everything is going to be fine.
The agent has called in advance and you have mad your last
                                                                   WHAT SHOULD YOU DO? Read a magazine;
                                                                   WHAT SHOULD YOU DO?
minute preparations as indicated in “Preparing for a Showing”.     watch a TV program; take a walk outside;
                                                                   continue with a chore. Pick a room and settle
RELAX There is nothing more to do. Pick up
RELAX                                                              down. When they stop to preview that room, you
a magazine while you’re waiting. Try to be                         may leave, but it’s not really necessary. After all,
understanding; the agent may have several                          they don’t’ want to feel that they are chasing you
home showings scheduled and he or she may                          around the house. If there’s a room that you
be a bit early or late. It’s very difficult to be                  should try not to be in, it would be the kitchen
perfectly precise.                                                 since buyers, generally, spend more time there as
                                                                   they evaluate appliances, counter space,
THE DOG Keep Fido away. Pet lovers will
THE DOG                                                            cabinets, etc.
be distracted by your fun pet. For those who
do not have pets, it may be bothersome or     CONVERSING WITH THE BUYERS If you
                                              CONVERSING WITH THE BUYERS
scary.                                        are asked a question about the neighborhood,
                                              schools, etc. by all means answer pleasantly.
CHILDREN SHOULD BE SEEN AND NOT However, avoid becoming engaged in a
HEARD This is a new experience for the kids. conversation. Questions regarding terms of sale
Naturally they are excited, but they will     should be referred to the agent. If the agent is a
disturb the professional flow of the showing. cooperating broker and does not have the
Ask them to remain away from the agent and    answers, advise him or her that I, your agent,
buyers, to go outside, or to watch TV.        will contact them.

DING DONG Answer the door as you would                             INCLUSIONS The listing should clearly
                                                                   identify items that are included and excluded in
for any welcome guest. The agent will take
                                                                   the offered property. Don’t initiate conversations
care of the introductions. If there is a situation
                                                                   about other personal property that you may be
that needs mentioning, perhaps a sick child in
                                                                   interested in negotiating. It rarely is a deal
the second bedroom, do so now. You may
                                                                   clincher, may be distracting, and besides there
invite the agent to begin showing the home                         will be time to discuss this at the presentation
and then you may excuse yourself.                                  time.
LOW PROFILE Discreetly remain away
LOW PROFILE                                    LET THE “PRO” WORK As much as you
                                               LET THE “PRO” WORK
from the buyers. As helpful as you wish to be, love your home, don’t be tempted into doing the
your presence will be intimidating. They need agent’s job. He or she has been working with the
to be able to discuss the home freely with one buyers and should know what is important to
another. And the agent needs to learn from the them. Whether the agent mentions your new
buyers how they are responding to your home. refrigerator now, or after they leave, is in their
Your presence can limit that free              hands.
communication as well as the buyer’s ability
to envision themselves in your home.
   You’ve done all that you can. Now, relax as we do our job. Soon I’ll be
   calling you to say, “Congratulations, we have an offer to show to you”.
                   WHEN AN OFFER IS MADE
1.. PRESENTING THE OFFER Be assured that
1 PRESENTING THE OFFER                                    The lending institution must….
as soon as I am aware that a written offer to             1. Verify that the buyer has the ability to meet the
purchase has been signed, I will contact you              monthly loan payment. They will examine the
immediately. The timing may be inopportune but            buyer’s credit history, employment, etc.
                                                          2. Verify that the value of your home is enough to
it’ usually best to move ahead rapidly to consider        ensure the safety of their loan. An appraiser,
the contract. Please note that when I call you, I         assigned by the lender, will visit your home to
may or may not yet be aware of the terms of the           affirm that it’s value, based upon a study of
offer. When I have the contract in hand, I will           comparable homes, adequately secures the loan that
study it closely and review each of the terms and         they are making to your buyer. The mortgage loan
conditions with you to your complete                      underwriter will approve the loan based upon a
understanding and satisfaction.                           satisfactory review of the above information.
                                                          B. After the loan is approved, more legal work is
2.. THREE OPTIONS TO CONSIDER When we                        necessary, though you will have very little
2 THREE OPTIONS TO CONSIDER                                  involvement. The property title will be searched,
consider the terms of the contract, remember that            title insurance will be ordered and an updated
you are in charge. You are free to deal with the             survey of the property may need to be ordered. If
contract as you choose, and I will be there to assist        the property is a condominium, the Association
you. Generally, there are three options available to         may be contacted.
you:                                                      C. When the paperwork is in order, the time and
A. Accept the offer as presented. I will convey              place of settlement will be agreed to by all parties
     your acceptance and the home is SOLD!                   involved. We will cooperate totally to insure a
B. Make a counter proposal – Propose changes to              smooth and timely closing.
                                                          D. Prior to the time of closing , the buyer may
     the offer, i.e. price, personal property, closing
                                                             request a physical inspection of the home. The
     or possession dates, etc. so that it is acceptable      buyers may or may not be accompanied by a
     to you. Be aware, however, that when you                property inspector whom they have engaged at
     change anything, the buyer is completely freed          their expense.
     from the earlier commitment to buy. I will           E. Keys will be delivered to the buyer at the closing,
     convey the terms of your proposal and the               or whenever possession of the property has been
     prospective purchaser may either accept,                agreed upon.
     reject or offer a new proposal                       F. At closing, all documents finalizing the sale will
                                                             be signed by all parties and all funds will be
C. Reject the offer.
                                                          MY RESPONSIBILITIES
                                                          MY RESPONSIBILITIES
 3 DELIVERY OF THE CONTRACT                               My responsibilities are not fulfilled until the
the finalized contract will be delivered to both             transaction is completed.
buyer and seller by their respective real estate          A. I will follow the transaction’s progress and
agents.                                                        inform you of significant developments.
                                                          B. I will do everything in my power to work with
4 FINALIZING ALL CONDITIONS                                    your lender, accountant, lawyer, etc. to ensure a
                                                               timely and highly satisfactory settlement for
A. BUYER’S FINANCING: If the contract
states that the buyer has a specific number of days
                                                          C. Know that, beyond the above, I am here to
to secure financing for the home it is his                     answer any question and to resolve any problem
responsibility to apply for and to secure a loan               or uncertainty that you may have. I want this to
commitment within the time period.                             be a positive experience for you.
          IT DEPENDS…

 I will prepare a professional Comparative Market Analysis that will consider
 recently sold, comparable homes as well as homes with which your home may
 be competing. It will point to a marketing price that will allow you’re the
 opportunity to sell for top price without pricing yourself out of the market.
  Team Thayer says, “ Price it Right… at the Beginning!”

 Difference between Asking and Selling Price ove
              time in a national study.



           Month 1     Months 2-3       Months 4-6      Months 6+

I will prepare a professional Comparative Market Analysis that will consider
recently sold, comparable homes as well as homes with which your home may
be competing. It will point to a marketing price that will allow you the
opportunity to sell for top price without pricing yourself out of the market.
         Top 15 Things to keep in mind while
           preparing your Home for sale
1. De-personalize your space and de-clutter it. Box up your photos, knick-
   knacks & souvenirs & put them in the garage or storage facility
2. Give your front yard curb appeal by cutting the lawn, trimming the
   shrubs, freshening the bark & planting brightly colored flowers by the
   front door
3. Make your kitchen shine by taking everything off of the counters and
   cleaning them as well as your stove top
4. Neaten your bathrooms by removing any stains from toilets, bathtubs,
   sinks & showers. Make sure you put fresh, clean towels out.
5. Check the walls & ceilings for any stains or cracks. If you find them
   repair them and re-paint the repaired areas.
6. Replace or remove faded curtains & bedspreads with new ones that are
   modern and have neutral tones.
7. Remove any excess furniture from the main living areas. Remember that
   we are trying to create an image of spaciousness for buyers.
8. Replace all burnt out light bulbs with bright bulbs.
9. Clean out your closets & storage spaces are not overloaded so potential
   buyers get the impression that there is adequate storage space
10.      Have your carpets shampooed or your wood floors shined up
11.      Minimize any odors (pet, smoke, etc.) Odors keep potential buyers
   from writing offers
12.      The front door helps give buyers their first impression of your home
   so it must be clean & in good condition. If it needs painting or
   refinishing, get it done!!
13.      Keep draperies & shades open to let in the light. Turn on lights in
   rooms that are darker.
14.      Keep pets either outside or in a location that potential buyers can
   freely explore you home without encountering your pets.
15.      Allow the real estate expert to show your house. Don’t tag along.
   When asked answer questions candidly, but don’t offer answers to
   unasked questions.
        Documents Needed to Apply for a Mortgage
           When you apply for a mortgage, you will need to furnish information regarding your income,
           expenses and obligations. It will save a lot of time if you have the following items available:

                •   Two most recent pay stubs
                •   W-2s for the last 2 years
                •   Federal Tax Returns for the last 2 years
                •   Long-term debt information (Credit Cards, Child Support, Auto Loans, Installment
                    Debt, etc.)

                                               Financing Process
1. Complete the loan                                          3. The lender may            4. A credit report and     5. The lender evaluates
application. The lender        2. The lender begins           provide a booklet of         verification of            the application, along
may require an                 processing the                 loan information &           employment and assets      with supporting
application fee.               application                    good faith estimate of       such as bank accounts      documentation, and
                                                              closing costs.               will be required.          approves the loan.

      6. An estimate of your           7. The lending institution
      loan costs in the form           orders an appraisal of the                                        9. The lender disburses
                                                                             8. Sign closing
      of an initial Truth In           home. Once appraisal is                                           the funds to the
                                       completed, and                        documents.
      Lending Disclosure                                                                                 settlement or closing
                                       conditions met, loan
      (Reg Z) is issued.               documents are orderd

                                       10. Appropriate                   11. Seller is paid and
                                       document recorded at              the title to home is
                                       the county recorder’s             yours!!

    Q. What is included in my house payments?
    A. Principal and interest on your loan. Depending on the terms of your loan, you can pay your own taxes and insurance if
    you borrowed no more than 80% of the purchase price or appraised value of your home. Check with your lender to be
    Q. What do closing cost include?
    A. Closing costs cover processing your loan, as well as any escrow fees. You will usually be asked to prepay any interest
    charges to cover the partial month in which you close, and impounds for property taxes, hazard insurance and mortgage
    Q. When do my mortgage payments start?
    A. Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents.
Glossary Of Real Estate Financing Terms:

203(b): FHA program Which provides mortgage insurance to protect lenders from default; used to finance the purchase of
new or existing one- to four family housing; characterized by low down payment, flexible qualifying guidelines, limited
fees, and a limit on maximum loan amount.

203(k): this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of
its rehabilitation through a single mortgage loan.

Amortization: repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment
amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15
or 30 years)
Annual Percentage Rate (APR): calculated by using a standard formula, the APR shows the cost of a loan; expressed as a
yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.
Application: the first step in the official loan approval process; this form is used to record important information about the
potential borrower necessary to the underwriting process.
Appraisal: a document that gives an estimate of a property's fair market value; an appraisal is generally required by a
lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
ARM: Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly
payments increase or decrease at intervals determined by the lender; the Change in monthly -payment amount, however,
is usually subject to a Cap.
Assessor: a government official who is responsible for determining the value of a property for the purpose of taxation.
Assumable Mortgage: a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer
the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an
assumable mortgage.

Balloon Mortgage: a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after
that time period elapses, the balance is due or is refinanced by the borrower.
Bankruptcy: a federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts;
this usually occurs when someone owes more than they have the ability to repay.
Borrower: a person who has been approved to receive a loan and is then obligated to repay it and any additional fees
according to the loan terms.
Bridal Registry: a program supported by the FHA that allows couples to open ('register" for) a bridal registry account into
which family and friends can deposit gifts of cash; the funds in this account may then be used for a down payment on a
Building code: based on agreed upon safety standards within a specific area, a building code is a regulation that
determines the design, construction, and materials used in building.

Cap: a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can
increase or decrease.
Cash reserves: a cash amount sometimes required to be held in reserve in addition to the down payment and closing costs;
the amount is determined by the lender.
Certificate of title: a document provided by a qualified source (such as a title company) that shows the property legally
belongs to the current owner; before the title is transferred at closing, it should be clear an-d free of all liens or other
Closing: also known as settlement, this is the time at which the property is formally sold and transferred from the seller to
the buyer; it is at this time that the borrower takes on the loan obligation, pays all closing costs, and receives title from
the seller.
Closing costs: customary costs above and beyond the sale price of the property that must be paid to cover the transfer of
ownership at closing; these costs generally vary by geographic location and are typically detailed to the borrower after
submission of a loan application.
Condominium: a form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the
owner also shares financial responsibility for common areas.
Conventional loan: a private sector loan, one that is not guaranteed or insured by the U.S. government.
Cooperative (Co-op): residents purchase stock in a cooperative corporation that owns a structure; each stockholder is then
entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan.
Credit report: a record that lists all past and present debts and the timeliness of their repayment; it documents an
individual's credit history.
Credit bureau score: a number representing the possibility a borrower may default; it is based upon credit history and is
used to determine ability to qualify for a mortgage loan.

Debt-to-income ratio: a comparison of gross income to housing and non-housing expenses; With the FHA, the-monthly
mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment
combined with non-housing debts should not exceed 41% of income.
Deed-in-lieu: to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay
the debt; this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort
associated with foreclosure.
Default: the inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms.
Delinquency: failure of a borrower to make timely mortgage payments under a loan agreement.
Discount point: normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount
points are paid to reduce the interest rate on a loan.
Down payment: the portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.
Earnest money: money put down by a potential buyer to show that he or she is serious about purchasing the home; it
becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer
pulls out of the deal.
EEM: Energy Efficient Mortgage; an FHA program that helps homebuyers save money on utility bills by enabling them to
finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase
Equity: an owner's financial interest in a property; calculated by subtracting the amount still owed on the mortgage loon(s)
from the fair market value of the property.
Escrow account: a separate account into which the lender puts a portion of each monthly mortgage payment; an escrow
account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.

Fair Housing Act: a law that prohibits discrimination in all facets of the home buying process on the basis of race, color,
national origin, religion, sex, familial status, or disability.
Fair market value: the hypothetical price that a willing buyer and seller will agree upon when they are acting freely,
carefully, and with complete knowledge of the situation.
Fannie Mae: Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders
that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages,
Fannie Mae supplies funds that lenders may loan to potential homebuyers.
FHA: Federal Housing Administration; established in 1934 to advance homeownership opportunities for all Americans;
assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower
defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.
Fixed-rate mortgage: a mortgage with payments that remain the same throughout the life of the loan because the interest
rate and other terms are fixed and do not change.
Flood insurance: insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the
lender will require flood insurance before approving a loan.
Foreclosure: a legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.
Freddie Mac: Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases
residential mortgages, securitizes them, and sells them to investors; this provides lenders With funds for new homebuyers.

Ginnie Mae: Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S.
Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities
for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be
lent to eligible borrowers by lenders.
Good faith estimate: an estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be
given to the borrower within three days after submission of a loan application.

HELP: Homebuyer Education Learning Program; an educational program from the FHA that counsels people about the home
buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases,
completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to
1.75% of the home purchase price.
Home inspection: an examination of the structure and mechanical systems to determine a home's safety; makes the
potential homebuyer aware of any repairs that may be needed.
Home warranty: offers protection for mechanical systems and attached appliances against unexpected repairs not covered
by homeowner's insurance; coverage extends over a specific time period and does not cover the home's structure.
Homeowner's insurance: an insurance policy that .combines protection against damage to a dwelling and Is contents with
protection against claims of negligence or inappropriate action that result in someone's injury or property damage.
Housing counseling agency: provides counseling and assistance to individuals on a variety of issues, including loan default,
fair housing, and home buying.
HUD: the U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home
and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing
American communities, and enforcing fair housing laws.
HUD1 Statement: also known as the "settlement sheet," it itemizes all closing costs; must be given to the borrower at or
before closing.

Index: a measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.
Interest: a fee charged for the use of money.
Interest rate: the amount of interest charged on a monthly loan payment; usually expressed as a percentage.

Judgment: a legal decision; when requiring debt repayment, a judgment may include a property lien that secures the
creditor's claim by providing a collateral source.

Lease purchase: assists low- to moderate-income homebuyers in purchasing a home by allowing them to lease a home with
an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to
an account for use as a down payment.
Lien: a legal claim against property that must be satisfied When the property is sold
Loan fraud: purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in
civil liability or criminal penalties.
Loan-to-value (LTV) ratio: a percentage calculated by dividing the amount borrowed by the price or appraised value of the
home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.
Lock-in: since interest rates can change frequently, many lenders offer an interest rate lock-in that guarantees a specific
interest rate if the loan is closed within a specific time.
Loss mitigation: a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan
payments and is in danger of defaulting on his or her loan
Margin: an amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage.
Mortgage banker: a company that originates loans and resells them to secondary mortgage lenders like: Fannie Mae or
Freddie Mac.
Mortgage broker: a firm that originates and processes loans for a number of lenders.
Mortgage insurance: a policy that protects lenders against some or most of the losses that can occur when a borrower
defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20%
of the home's purchase price.
Mortgage insurance premium (MIP): a monthly payment -usually part of the mortgage payment - paid by a borrower for
mortgage insurance.
Mortgage Modification: a loss mitigation option that allows a borrower to refinance and/or extend the term of the
mortgage loan and thus reduce the monthly payments.

Offer: indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
Origination: the process of preparing, submitting, and evaluating a loan application; generally includes a credit check,
verification of employment, and a property appraisal.
Origination fee: the charge for originating a loan; is usually calculated in the form of points and paid at closing.

Partial Claim: a loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an
interest-free loan from HUD to bring their mortgage payments up to date.
PITI: Principal, Interest, Taxes, and Insurance - the four elements of a monthly mortgage payment; payments of principal
and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and
mortgage, if applicable) goes into an escrow account to cover the fees when they are due.
PMI: Private Mortgage Insurance; privately-owned companies that offer standard and special affordable mortgage insurance
programs for qualified borrowers with down payments of less than 20% of a purchase price.
Pre-approve: lender commits to lend to a potential borrower; commitment remains as long as the borrower still meets the
qualification requirements at the time of purchase.
Pre-foreclosure sale: allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid
Pre-qualify: a lender informally determines the maximum amount an individual is eligible to borrow.
Prepayment: payment of the mortgage loan before the scheduled due date; may be Subject to a prepayment penalty.
Principal: the amount borrowed from a lender; doesn't include interest or additional fees.

Radon: a radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health
Refinancing: paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a
lower interest rate).
Rehabilitation mortgage: a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some
rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase
into one mortgage loan.
RESPA: Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate
purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships

Special Forbearance: a loss mitigation option where the lender arranges a revised repayment plan for the borrower that
may include a temporary reduction or suspension of monthly loan payments.
Subordinate: to place in a rank of lesser importance or to make one claim secondary to another.
Survey: a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement
locations, etc.
Sweat equity: using labor to build or improve a property as part of the down payment

Title 1: an FHA-insured loan that allows a borrower to make non-luxury improvements (like renovations or repairs) to their
home; Title I loans less than $7,500 don't require a property lien.
Title insurance: insurance that protects the lender against any claims that arise from arguments about ownership of the
property; also available for homebuyers.
Title search: a check of public records to be sure that the seller is the recognized owner of the real estate and that there
are no unsettled liens or other claims against the property.
Truth-in-Lending: a federal law obligating a lender to give fuII written disclosure of aII fees, terms, and conditions
associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan.

Underwriting: the process of analyzing a loan application to determine the amount of risk involved in making the loan; it
includes a review of the potential borrower's credit history and a judgment of the property value.

VA: Department of Veterans Affairs: a federal agency which guarantees loans made to veterans; similar to mortgage
insurance, a loan guarantee protects lenders against loss that may result from a borrower default.
                                      The Critical Role of the Realtor®
                                      in the Real Estate Transaction

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, REALTORS® 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.

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

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.

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 REALTORS® 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 200 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!

       Pre-Listing Activities
 1     Make appointment with seller for listing presentation
 2     Send seller a written or e-mail confirmation of listing appointment and call to confirm
 3     Review pre-appointment questions
 4     Research all comparable currently listed properties
 5     Research sales activity for past 18 months from MLS and public records databases
 6     Research "Average Days on Market" for this property of this type, price range and location
 7     Download and review property tax roll information
 8     Prepare "Comparable Market Analysis" (CMA) to establish fair market value
 9     Obtain copy of subdivision plat/complex lay-out
 10    Research property's ownership & deed type
 11    Research property's public record information for lot size & dimensions
 12    Research and verify legal description
 13    Research property's land use coding and deed restrictions
 14    Research property's current use and zoning
 15    Verify legal names of owner(s) in county's public property records
 16    Prepare listing presentation package with above materials
 17    Perform exterior "Curb Appeal Assessment" of subject property
18   Compile and assemble formal file on property
19   Confirm current public schools and explain impact of schools on market value
20   Review listing appointment checklist to ensure all steps and actions have been completed

     Listing Appointment Presentation
21   Give seller an overview of current market conditions and projections
22   Review agent's and company's credentials and accomplishments in the market
23   Present company's profile and position or "niche" in the marketplace
24   Present CMA Results To Seller, including Comparables, Solds, Current Listings & Expireds
25   Offer pricing strategy based on professional judgment and interpretation of current market conditions
26   Discuss Goals With Seller To Market Effectively
27   Explain market power and benefits of Multiple Listing Service
28   Explain market power of web marketing, IDX and REALTOR.com
29   Explain the work the brokerage and agent do "behind the scenes" and agent's availability on
30   Explain agent's role in taking calls to screen for qualified buyers and protect seller from curiosity
31   Present and discuss strategic master marketing plan
32   Explain different agency relationships and determine seller's preference
33   Review and explain all clauses in Listing Contract & Addendum and obtain seller's signature

     Once Property is Under Listing Agreement
34   Review current title information
35   Measure overall and heated square footage
36   Measure interior room sizes
37   Confirm lot size via owner's copy of certified survey, if available
38   Note any and all unrecorded property lines, agreements, easements
39   Obtain house plans, if applicable and available
40   Review house plans and make copy
41   Order plat map for retention in property's listing file
42   Prepare showing instructions for buyers' agents and agree on showing time window with seller
43   Obtain current mortgage loan(s) information: companies and & loan account numbers
44   Verify current loan information with lender(s)
45   Check assumability of loan(s) and any special requirements
46   Discuss possible buyer financing alternatives and options with seller
47   Review current appraisal if available
48   Identify Home Owner Association manager if applicable
49   Verify Home Owner Association Fees with manager - mandatory or optional and current annual fee
50   Order copy of Homeowner Association bylaws, if applicable
51   Research electricity availability and supplier's name and phone number
52   Calculate average utility usage from last 12 months of bills
53   Research and verify city sewer/septic tank system
54   Water System: Calculate average water fees or rates from last 12 months of bills )
55   Well Water: Confirm well status, depth and output from Well Report
56   Natural Gas: Research/verify availability and supplier's name and phone number
57   Verify security system, current term of service and whether owned or leased
58   Verify if seller has transferable Termite Bond
59   Ascertain need for lead-based paint disclosure
60   Prepare detailed list of property amenities and assess market impact
61   Prepare detailed list of property's "Inclusions & Conveyances with Sale"
62   Compile list of completed repairs and maintenance items
63    Send "Vacancy Checklist" to seller if property is vacant
64    Explain benefits of Home Owner Warranty to seller
65    Assist sellers with completion and submission of Home Owner Warranty Application
66    When received, place Home Owner Warranty in property file for conveyance at time of sale
67    Have extra key made for lockbox
68    Verify if property has rental units involved. And if so:
69             Make copies of all leases for retention in listing file
70             Verify all rents & deposits
71             Inform tenants of listing and discuss how showings will be handled
72    Arrange for installation of yard sign
73    Assist seller with completion of Seller's Disclosure form
74    "New Listing Checklist" Completed
75    Review results of Curb Appeal Assessment with seller and provide suggestions to improve salability
76    Review results of Interior Décor Assessment and suggest changes to shorten time on market
77    Load listing into transaction management software program

      Entering Property in Multiple Listing Service Database
78    Prepare MLS Profile Sheet -- Agents is responsible for "quality control" and accuracy of listing data
79    Enter property data from Profile Sheet into MLS Listing Database
80    Proofread MLS database listing for accuracy - including proper placement in mapping function
81    Add property to company's Active Listings list
82    Provide seller with signed copies of Listing Agreement and MLS Profile Sheet Data Form within 48
83    Take additional photos for upload into MLS and use in flyers. Discuss efficacy of panoramic

      Marketing The Listing
84    Create print and Internet ads with seller's input
85    Coordinate showings with owners, tenants, and other Realtors®. Return all calls - weekends
86    Install electronic lock box if authorized by owner. Program with agreed-upon showing time windows
87    Prepare mailing and contact list
88    Generate mail-merge letters to contact list
89    Order “Just Listed” labels & reports
90    Prepare flyers & feedback faxes
91    Review comparable MLS listings regularly to ensure property remains competitive in price, terms,
      conditions and availability
92    Prepare property marketing brochure for seller's review
93    Arrange for printing or copying of supply of marketing brochures or fliers
94    Place marketing brochures in all company agent mail boxes
95    Upload listing to company and agent Internet site, if applicable
96    Mail Out "Just Listed" notice to all neighborhood residents
97    Advise Network Referral Program of listing
98    Provide marketing data to buyers coming through international relocation networks
99    Provide marketing data to buyers coming from referral network
100   Provide "Special Feature" cards for marketing, if applicable
101   Submit ads to company's participating Internet real estate sites
102   Price changes conveyed promptly to all Internet groups
103   Reprint/supply brochures promptly as needed
104   Loan information reviewed and updated in MLS as required
105   Feedback e-mails/faxes sent to buyers' agents after showings
106   Review weekly Market Study
107   Discuss feedback from showing agents with seller to determine if changes will accelerate the sale
108   Place regular weekly update calls to seller to discuss marketing & pricing
109   Promptly enter price changes in MLS listing database

      The Offer and Contract
109   Receive and review all Offer to Purchase contracts submitted by buyers or buyers' agents.
110   Evaluate offer(s) and prepare a "net sheet" on each for the owner for comparison purposes
111   Counsel seller on offers. Explain merits and weakness of each component of each offer
112   Contact buyers' agents to review buyer's qualifications and discuss offer
113   Fax/deliver Seller's Disclosure to buyer's agent or buyer upon request and prior to offer if possible
114   Confirm buyer is pre-qualified by calling Loan Officer
115   Obtain pre-qualification letter on buyer from Loan Officer
116   Negotiate all offers on seller's behalf, setting time limit for loan approval and closing date
117   Prepare and convey any counteroffers, acceptance or amendments to buyer's agent
118   Fax copies of contract and all addendums to closing attorney or title company
119   When Offer to Purchase Contract is accepted and signed by seller, deliver to buyer's agent
120   Record and promptly deposit buyer's earnest money in escrow account.
121   Disseminate "Under-Contract Showing Restrictions" as seller requests
122   Deliver copies of fully signed Offer to Purchase contract to seller
123   Fax/deliver copies of Offer to Purchase contract to Selling Agent
133   Fax copies of Offer to Purchase contract to lender
124   Provide copies of signed Offer to Purchase contract for office file
125   Advise seller in handling additional offers to purchase submitted between contract and closing
126   Change status in MLS to "Sale Pending"
127   Update transaction management program to show "Sale Pending"
128   Review buyer's credit report results -- Advise seller of worst and best case scenarios
129   Provide credit report information to seller if property will be seller-financed
130   Assist buyer with obtaining financing, if applicable and follow-up as necessary
131   Coordinate with lender on Discount Points being locked in with dates
132   Deliver unrecorded property information to buyer
133   Order septic system inspection, if applicable
134   Receive and review septic system report and assess any possible impact on sale
135   Deliver copy of septic system inspection report lender & buyer
136   Deliver Well Flow Test Report copies to lender & buyer and property listing file
137   Verify termite inspection ordered
138   Verify mold inspection ordered, if required

      Tracking the Loan Process
139   Confirm Verifications Of Deposit & Buyer's Employment Have Been Returned
140   Follow Loan Processing Through To The Underwriter
141   Add lender and other vendors to transaction management program so agents, buyer and seller can
      track progress of sale
142   Contact lender weekly to ensure processing is on track
143   Relay final approval of buyer's loan application to seller

    Home Inspection
144 Coordinate buyer's professional home inspection with seller
145 Review home inspector's report
146 Enter completion into transaction management tracking software program
147 Explain seller's responsibilities with respect to loan limits and interpret any clauses in the contract
148 Ensure seller's compliance with Home Inspection Clause requirements
149 Recommend or assist seller with identifying and negotiating with trustworthy contractors to perform
    any required repairs
150 Negotiate payment and oversee completion of all required repairs on seller's behalf, if needed

      The Appraisal
151   Schedule Appraisal
154   Provide comparable sales used in market pricing to Appraiser
152   Follow-Up On Appraisal
151   Enter completion into transaction management program
153   Assist seller in questioning appraisal report if it seems too low

      Closing Preparations and Duties
154   Contract Is Signed By All Parties
155   Coordinate closing process with buyer's agent and lender
156   Update closing forms & files
157   Ensure all parties have all forms and information needed to close the sale
158   Select location where closing will be held
159   Confirm closing date and time and notify all parties
160   Assist in solving any title problems (boundary disputes, easements, etc) or in obtaining Death
161   Work with buyer's agent in scheduling and conducting buyer's Final Walk-Thru prior to closing
172   Research all tax, HOA, utility and other applicable prorations
162   Request final closing figures from closing agent (attorney or title company)
163   Receive & carefully review closing figures to ensure accuracy of preparation
164   Forward verified closing figures to buyer's agent
165   Request copy of closing documents from closing agent
166   Confirm buyer and buyer's agent have received title insurance commitment
167   Provide "Home Owners Warranty" for availability at closing
168   Review all closing documents carefully for errors
169   Forward closing documents to absentee seller as requested
170   Review documents with closing agent (attorney)
171   Provide earnest money deposit check from escrow account to closing agent
173   Coordinate this closing with seller's next purchase and resolve any timing problems
174   Have a "no surprises" closing so that seller receives a net proceeds check at closing
175   Refer sellers to one of the best agents at their destination, if applicable
176   Change MLS status to Sold. Enter sale date, price, selling broker and agent's ID numbers, etc.
177   Close out listing in transaction management program

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

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