Understanding Real Estate Agency & Agency Relationships
The term “agency” is used in real estate to help determine what legal responsibilities your real estate professional owes to you and other parties in the transaction.
The seller’s representative (also known as a listing agent or seller’s agent) is hired by and represents the seller. All fiduciary duties are owed to the seller, meaning this person’s job is to get the best price and terms for the seller. The agency relationship usually is created by a signed listing contract.
The buyer’s representative (also known as a buyer’s agent) is hired by prospective buyers to and works in the buyer’s best interest throughout the transaction. The buyer can pay the agent directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split with the seller’s agent.
A subagent owes the same fiduciary duties to the agent’s customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. The subagent works with the buyer to show the property but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer customer can expect to be treated honestly by the subagent.
A disclosed dual agent represents both the buyer and the seller in the same real estate transaction. In such relationships, dual agents owe limited fiduciary duties to both buyer and seller clients. Because of the potential for conflicts of interest in a dual-agency relationship, all parties must give their informed consent. Disclosed dual agency is legal in most states, but often requires written consent from all parties.
Designated agents (also called appointed agents) are chosen by a managing broker to act as an exclusive agent of the seller or buyer. This allows the brokerage to avoid problems arising from dual-agency relationships for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties.
A transaction broker (sometimes referred to as a facilitator) is permitted in states where nonagency relationships are allowed. These relationships vary considerably from state to state. Generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.
Understanding Agency and Agency Relationships is an important part of how you perceive the success of your Real Estate transaction. What questions do you have about Agency Relationships? Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.
7 Ways To Prepare For Your Go-To-Market Photo Shoot
With the majority of buyers shopping for homes online – and of those buyers, the majority skipping over Listings that do not have accompanying photos – high-resolution photos, slide shows and tours are a must.
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Your Listing Agent will take care of the actual photo shoot, but there are seven key things you can do to make your home shine on camera:
1. Understand the camera’s perspective
The camera’s eye is different from the human eye. It magnifies clutter and poor furniture arrangement so that even a home that feels comfortable in person can look jumbled online.
2. Make it spotless
Cameras also tend to magnify grime. Don’t forget floor coverings and walls; a spot on a rug might be overlooked during a regular home showing, but it could become a focal point online.
3. Know what to leave
You want to avoid clutter, but try to have three items of varying heights on each surface. On an end table you can place a tall lamp (high), a small plant (medium), and a book (low).
4. Snap practice pictures with your own camera
This will give you an idea of what the home will look like on camera before the photographer shows up. Examine the photos and make changes to improve each room’s appearance, such as opening blinds to let in natural light, removing magnets from the refrigerator, or taking down distracting art.
5. Pare down
Removing one or two pieces of furniture from each room, even if just for the shoot, can make your space appear larger on screen.
Spotlight the flow of your space by creating a focal point on the furthest wall from the doorway and arranging the other pieces of furniture to make a triangle shape. The focal point may be a bed in a bedroom or a china cabinet in a dining room.
Include a healthy plant in every room; the camera loves greenery. Energize bland decor by placing a bright vase on a mantle or draping an afghan over a couch.
Did you recently list or sell your home with award-winning photography? Tell us your secrets! Sound of on our Facebook Page, Twitter or Instagram feeds or connect with us on LinkedIn. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for great tips for homeowners and sellers delivered straight to your inbox. You may unsubscribe at any time.
Why the Holidays Are A Great Time to Sell Your Home
When it comes to real estate, many believe the ideal time to sell your home often falls in the spring months. After all, people often hunker down during the winter or are too busy with the holidays to think about purchasing a new home. Not to mention that people like to start shopping in the spring to make sure they are settled in their home before the start of a new school year.
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But putting your house up for sale around the holidays has its benefits. Sure, you may not get into a bidding war, but you are going to deal with serious buyers who are ready to pull the trigger.
Consider these major benefits to selling your home this holiday season:
1. There’s Less Inventory
Conventional wisdom says people should wait until the spring to get the most from a home sale. But studies have shown that homes listed around the holidays can not only command more money, but can also sell quicker than ones listed in the spring.
One of the reasons is there is less competition during the holidays. For a multitude of reasons people won’t put their houses up for sale when the holidays are coming up, and so the ones shopping aren’t going to have dozens of houses to choose from. In the spring, inventory usually picks up, and price wars break out in coveted neighborhoods. But during the holidays, there will be limited choices which means a homeowner can have a higher asking price.
2. Buyers Are More Serious
Anyone who is shopping for a new home around Thanksgiving, Christmas or New Year’s is undoubtedly going to be a serious buyer. While hitting open houses is a favorite pastime for many Americans, they aren’t going to spend their precious time around the holidays seeing how the other half lives. In the spring, when open houses are a regular occurrence, people may check out homes without a clear plan to buy.
If your house is up for sale in the winter and someone is looking at it, chances are that person is serious and is ready to pull the trigger. That can often result in a quicker sales process.
3. You Can Make the Home Warm and Cozy
The holidays are often a time when people gather around fireplaces, have hot chocolate and make nice smelling cakes and pies. For homeowners who put their house up for sale during the winter months, they can stage their house to give off the comfy and homey vibe that appeals to many home buyers. Some people may argue that showing a house in the winter is hard to do because there’s snow on the ground, the house is drafty and the curb appeal is lacking. But keeping the heat up, having a pie baking in the oven to give off a pleasant smell and keeping the sidewalk and driveway clear of snow and ice can boost a home’s appeal.
Not to mention that buyers tend to be more emotional during the holidays and will make decisions based on the feeling a house conjures up. During the spring there is a lot more foot traffic in homes that are up for sale. Buyers may not be able to do a thorough walk-through, may get frustrated because of the number of people looking at it and can leave with a bad feeling about the home.
4. Timing Is Perfect for Transfers
The end of the year is typically the time when people get notified that they will be moving because of a job transfer. Those people are going to need a house sooner rather than later, and as a result will be hunting for a new home during the holidays. These buyers can’t wait for the spring, which is why listing during the holidays can get the home sold and sold quickly.
5. Your Neighborhood May Look More Appealing
One of the staples of the holiday months, particularly Christmas, is that many people adorn their homes with festive lights and decorations. That is also true of local communities where lit-up snowflakes and wreaths can be found on lamp poles and up and down the main streets. People purchasing a home during that time may see the neighborhood in a different light and may be more willing to consider an area that they may have been on the fence about.
6. End-of-Year Tax Breaks
Reducing the tax bill is not the main reason buyers purchase a new home, but it could be the reason serious buyers make a move during the holidays. That’s because if the home sale closes before Dec. 31, buyers can deduct the mortgage interest, property taxes and interest costs of the loan. The tax deductions can be significant and could prompt a home buyer to move during the holidays instead of waiting until the spring.
Nobody wants their home to languish on the market nor do they want to have to lower the price they are asking for. And while many fear that will happen if they list their home during the holidays, often that isn’t the case.
Are you planning on selling your home? Contact us to find out why selling your home during the holiday season can mean less competition, more serious buyers and a quicker sale.
How to Interview A Listing Agent
Is interviewing a Real Estate Agent such a daunting task?
Too many people rush into choosing a Listing Agent. Once the idea of selling pops into their minds, they may choose the first Agent that crosses their path, whether via postcard, a Facebook Ad or billboard. In fact, 72% of home sellers contacted only one Real Estate Agent before deciding on the ‘right Agent’ they like sell their home through.
The big question here is how does one avoid choosing the wrong Real Estate Agent for the job?
Either you interview a Real Estate Agent and decide to hire him right there and then; or you opt to interview a couple of Real Estate Agents. Whichever route you as a home seller decide to take, make sure you have prepared at least a handful of questions, which should quickly determine whether your decision to hire that Real Estate Agent was the good one (or not)!
Most Real Estate Agents will not expect you to be asking these types of questions!
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This list of 10 questions to ask when interviewing a Listing Agent will come in handy in separating the wheat from the chaff:
Question #1: How long have you been a Real Estate Agent?
As much as enthusiasm and passion a beginning Real Estate Agent might bring to the table, when it is time for contract negotiation, it will be the (negotiation) experience of the Agent which will bring the deal to a successful close!
The more contracts a Real Estate Agent has written over the years, the more experience he will have in detecting, avoiding, preparing, anticipating potential pitfalls! As any experienced Real Estate Agent can attest, there’s no such thing a ‘simple contract’ – every contract is unique and will require a customized legal frame work, making sure the terms and conditions of the deal are ironclad!
Of course, you’ll always have these superstar Agents who are making a killing in their first year of real estate, but those are the exception to the rule!
The other nine questions below will filter through whether you’re dealing with such a super-talented Agent or just a fly-by-night individual!
Question #2: How many real estate transactions did you close last year?
This might perhaps be seen as a rude or inappropriate question to ask if it were asked in any other field than real estate.
Real Estate Agents are always talking amongst one another about production numbers, as it’s an integrate part of their business models, annual goals, and getting more business!
Whereas the abstract figure won’t necessarily tell you a lot (other than give you a rough idea how much commission the Agent made), it does give you an idea of how active the Real Estate Agent is.
It might be tempting to look at the total number and use it as the sole measuring stick on how successful the Agent was, but one needs to put it into perspective:
The Real Estate Agent who sold the lower number of properties over the past 12 months might not immediately be your first choice, neither should the Agent who sold 50 properties in a particular year.
And why might that be?
Agents who give the highest listing price, do get a lot of business from home sellers, who don’t necessarily know any better, until it’s too late and the property has been exposed to the market for way too long! The overpriced properties you see lingering about for months on end, and plenty of expired listings are proof of that.
In other words, the ratio of houses the Agent eventually sells versus the (overpriced) properties that he still has on the books (which is called the sales-to-listing ratio) will be an important number to watch.
Thus, while not immediately evident by hearing a raw number, put into context, it is very revealing who is the better Agent: a Real Estate Agent who sells 16 out of his 20 listings compared to another Agent who sells 35 out of 70 listings!
Question #3: Is being a Real Estate Agent your full-time job?
There is this misconception that being a Real Estate Agent must be such an easy job, which offers lots of free time, days off, and can make you bundles of money. But if you interview a Real Estate Agent who’s been around the block, you will more than hear something completely different!
While one might initially be going through training and learning the ropes on a part-time basis, providing a professional service to your clients does require a full-time Real Estate Agent.
How is the part-time Agent going to handle all the incoming viewing requests, specific property inquiries by home buyers or property valuations for home sellers if he’s too busy working another job?
Nevermind what might happen if there’s talk of writing an offer at the ‘wrong time’ for this part-time Agent. Time constraint? Availability? Imagine as a home seller to be losing such an interested home buyer because the (part-time) Agent’s agenda can’t accommodate!
Needless to say, hiring a part-time Real Estate Agent is not advisable!
Question #4: How often can we expect feedback from you?
Perhaps the line of questioning ought to go in the direction of who will be providing the feedback!
Is the Real Estate Agent working on his own, together with a personal assistant or is there an entire team behind the scene? And more importantly, who will end up being the person you, as the home seller, will get all the feedback from?
It’s only normal for a home seller wanting to know what the home buyers have been saying about their property during the viewings over the course of the week. Most well-oiled teams have this part covered with a feedback system to make sure the home seller gets proper, timely information about buyer feedback!
Not only before the property is sold, but also during and afterwards, it’s vital for the Agent to keep the home seller in the loop of where they stand in the process: is a home inspection due or is the bank appraisal taking place soon? Plus, will the Agent be present during those activities as well?
Each of those events, as small or big as they may be, requires feedback to the home seller. This is where a professional Real Estate Agent (and/or team) stands out from the crowd! There’s no such thing as too much feedback!
Question #5: How do you normally communicate with your clients?
Depending on how the Agent responds to the previous question, you’ll lead right into this one.
Once you’ve established the frequency or timing of the feedback, you need to figure out which communication medium your Agent uses with other clients.
When you interview a Real Estate Agent, you need to make sure to inform the Real Estate Agent of your preferred method of communication!
Some people are stuck on a personal phone call following every showing appointment, others might be too busy and rather prefer you to send them a text message or email them a summary of what happened during the viewing.
Having said that, one of the biggest complaints people have against Agents is the lack of communication.
If an Agent happens to be in a client meeting and can’t pick up the phone, we all know that those things happen and a return call afterwards will set everything straight. However, I’m referring to the blatant lack of respect on part of a lot of Real Estate Agents who believe returning phone calls the same day is something of an unnecessary luxury. This Agent is in control of the sale of your life’s most expensive asset, so the least he can do is treat you with respect by returning your call(s) ASAP!
Question #6: Can you provide us with a recent list of client references?
There are pretty much two options you could go with:
(1) ask the Listing Agent for a list of recent client references, which is something he’ll more than likely have written out on a personal testimonial page on his website. You can also check sites like Zillow and Google for online reviews that the Agent cannot filter.
(2) maybe a better option would be to request the details of the last few homes he sold and consequently contact those people yourself. It might take a little bit more time and effort, but the feedback you’ll get from these previous clients will more than likely be quite informative, and more importantly, be unprepared by the Agent!
Question #7: How did you determine the asking price of our home?
Here, you have a couple of popular ways to arrive at the market value:
The most commonly used method (as well as the best one) is the Comparative Market Analysis (CMA), which allows the Agent to look at the recently sold properties in your immediate vicinity, as well as the current properties for sale, all within a similar size, look and price range, in order to arrive at a fair market value!
RELATED: The Importance Of Proper Pricing
As you interview a Real Estate Agent, nothing stops you from asking him to show you some proof regarding the CMA’s conclusions.
Question #8: Will you personally be taking pictures of our home?
How often have you browsed a property portal and come across some incredibly bad pictures? What was the Agent thinking? And how did the seller approve that marketing material?
This makes you stop and think who could have possibly have taken those unprofessional photos?
Whereas there are Agents who have particularly good photography skills and appropriate equipment to present your home at its best, the majority of Real Estate Agents don’t.
The importance of having great photos as part of your marketing cannot be stressed enough!
Bottom line: unless this Real Estate Agent is half a pro at taking real estate photos himself, insist on a Professional Real Estate Photographer.
Question #9: Which advertising tools will you be using to market our home?
Besides the traditional advertising tools, such as ads in newspapers, magazines, postcards, billboards etc., any decent Real Estate Agents needs to have a strong online presence.
Marketing should be happening all over! Your property needs to get exposed to as many potential home buyers as possible!
As a quick reminder, 90% of the home buyers start their home search online!
RELATED: Your Unique Marketing Plan
The internet is where all the researching and reading up happens, months before the home buyer even contacts the Agent!
Through the Agent’s online activities across many social network platforms, his personal website, and an active blogging calendar, chances are very good that the home buyers will keep running into that Agent’s content during their information-gathering phase. And who will they more than likely be contacting to help them find homes for sale on the Jersey Shore once they’re ready? After all, without even having met the Agent, these home buyers already have quite the impression of him due to this dominant online presence!
Question #10: Do you provide any additional services?
Sometimes it’s nice to know whether the Agent can offer you something different from the other Agents.
Any experienced Agent will immediately suggest helping out with the presentation of your home: from the cleaning & decluttering, to some of the needed repairs to the house, to getting that garden up-to-date, with extra attention pruning the shrubs & trimming the lawn.
Provided that the Agent has been working in the local area for many years, he’ll be able to set you up with a list of vendors as well, ranging from local handymen, attorneys, moving companies, to name but a few.
Keep in mind that the better Agents have your best interest at heart and don’t mean anything personal or hurtful if they point out potential negatives throughout the house.
The Real Estate Agent’s advice shouldn’t be taken lightly, as it is in their interest as well to have a more desirable and saleable product to present to buyers!
Have you recently interviewed a Listing Agent to sell your home? What did you learn? Did you rush through the process with regrets? Share your story on the Patrick Parker Realty Facebook Page, on our Twitter, Instagram or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICE™ eNewsletter for articles like this one delivered straight to your inbox.
What Is a Real Estate Agent’s Commission?
Ever wonder what exactly a Real Estate Agent does? Are they worth the commission? Ever wonder if you’re paying too much for commission? Even consider going it your own via FSBO?
You may have a great Agent and they don’t communicate with you all they’re doing. Or, you may also have a rock star agent and who’s doing so much it hasn’t even occurred to you all the fine details going into your home sale.
Here are a few facts that might help you sleep at night and have some peace about residential real estate commissions:
1. Real estate agents are sole proprietors
That means that even if they are a part of an agency, they are small business owners and cover all their own costs and carry all the risk. Do you own or have you ever owned your own small business? Then you know you wear ALL the hats and all the responsibility falls to you. Not to mention, your rather high tax rate!
They invest in you and your home. If they take on a listing, that means they’ve calculated the cost of marketing, photos, and time – lots and lots of time. High quality marketing – online and offline – and maybe even virtual tours. All that cost money. There’s considerable overhead if you are active in the field.
They have no salary and no real predictability in income. One deal may have to last them many months or maybe even longer.
2. The sale of your home may be covering for the loss of another
Deals fall through ALL. THE. TIME. Your particular sale may go pretty smoothly – great! I guarantee you it has ended up covering for a major loss on another deal. It’s the nature of business.
3. The real work begins once a contract is accepted
It may feel like all an agent does is show up sometimes for an open house here and there and put a sign in the yard. Or every time they come over, they’re telling you things you need to spend money on. But the real work is done behind the scenes and is intensified once an offer is accepted. Getting to the closing table is more and more challenging.
Pat Vredevoogd-Combs, a former president of the National Association of REALTORS, testified before the House Financial Services Committee on Housing to stark federal complaints about residential real estate industry pricing.
She submitted a list of 184 things that Listing Agents do in every real estate transaction as a part of her testimony to the committee. She stated, “By all accounts the general public is not aware of all the services that agents provide to sellers and buyers during the course of the transaction, probably because most of the important services are performed behind the scenes.”
Here is the list of (just) 184 things residential real estate agents do:
1. Make appointment with seller for listing presentation.
2. Send a written or e-mail confirmation of appointment and call to confirm.
3. Review appointment questions.
4. Research all comparable currently listed properties.
5. Research sales activity for past 18 months from MLS and public databases.
6. Research “average days on market” for properties similar in type, price and location.
7. Download and review property tax roll information.
8. Prepare “comparable market analysis” (CMA) to establish market value.
9. Obtain copy of subdivision plat/complex layout.
10. Research property’s ownership and deed type.
11. Research property’s public record information for lot size and dimensions.
12. 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 their impact on market value.
20. Review listing appointment checklist to ensure completion of all tasks.
Listing Appointment Presentation
21. Give seller an overview of current market conditions and projections.
22. Review agent and company credentials and accomplishments.
23. Present company’s profile and position or “niche” in the marketplace.
24. Present CMA results, including comparables, solds, current listings and expireds.
25. Offer professional pricing strategy based and interpretation of current market conditions.
26. Discuss goals to market effectively.
27. Explain market power and benefits of multiple listing service.
28. Explain market power of Web marketing, IDX and MLS.
29. Explain the work the broker and agent do “behind the scenes” and agent’s availability on weekends.
30. Explain agent’s role in screening qualified buyers to protect against curiosity seekers.
31. Present and discuss strategic master marketing plan.
32. Explain different agency relationships and determine seller’s preference.
33. Review all clauses in listing contract and obtain seller’s signature.
After Listing Agreement is Signed
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, 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 with seller.
43. Obtain current mortgage loan(s) information: companies and 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 is applicable.
49. Verify Home Owner Association fees with manager–mandatory or optional and current annual fee.
50. Order copy of Home Owner 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. Calculate average water system fees or rates from last 12 months of bills.
55. Or confirm well status, depth and output from Well Report.
56. Research/verify natural gas availability, supplier’s name and phone number.
57. Verify security system, 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. Complete 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 and deposits.
71. Inform tenants of listing and discuss how showings will be handled.
72. Arrange for yard sign installation.
73. Assist seller with completion of Seller’s Disclosure form.
74. Complete “new listing checklist.”
75. Review results of Curb Appeal Assessment with seller and suggest improvements for salability.
76. Review results of Interior Decor Assessment and suggest changes to shorten time on market.
77. Load listing time into transaction management software.
Entering Property in MLS Database
78. Prepare MLS Profile Sheet–agent 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 property placement in mapping function.
81. Add property to company’s Active Listings.
82. Provide seller with signed copies of Listing Agreement and MLS Profile Data Form within 48 hours.
83. Take more photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography.
Marketing the Listing
84. Create print and Internet ads with seller’s input.
85. Coordinate showings with owners, tenants and other agents. Return all calls–weekends included.
86. Install electronic lockbox. 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 and reports.
90. Prepare flyers and feedback forms.
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 flyers.
94. Place marketing brochures in all company agent mailboxes.
95. Upload listing to company and agent Internet sites.
RELATED: Your Custom Home Marketing Plan
96. Mail “Just Listed” notice to all neighborhood residents.
97. Advise Network Referral Program of listing.
98. Provide marketing data to buyers from 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. Convey price changes promptly to all Internet groups.
103. Reprint/supply brochures promptly as needed.
104. Review and update loan information in MLS as required.
105. Send feedback e-mails/faxes 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 and pricing.
109. Promptly enter price changes in MLS listings database.
The Offer and the Contract
110. Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents. 111. Evaluate offer(s) and prepare “net sheet” on each for owner to compare.
112. Counsel seller on offers. Explain merits and weakness of each component of each offer. 113. Contact buyers’ agents to review buyer’s qualifications and discuss offer.
114. Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible.
115. Confirm buyer is pre-qualified by calling loan officer.
116. Obtain pre-qualification letter on buyer from loan officer.
117. Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date.
118. Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent.
119. Fax copies of contract and all addendums to closing attorney or title company.
120. When Offer-to-Purchase contract is accepted and signed by seller, deliver to buyer’s agent.
121. Record and promptly deposit buyer’s money into escrow account.
122. Disseminate “Under-Contract Showing Restrictions” as seller requests.
123. Deliver copies of fully signed Offer to Purchase contract to sellers.
124. Fax/deliver copies of Offer to Purchase contract to selling agent.
125. Fax copies of Offer to Purchase contract to lender.
126. Provide copies of signed Offer to Purchase contract for office file.
127. Advise seller in handling additional offers to purchase submitted between contract and closing.
128. Change MLS status to “Sale Pending.”
129. Update transaction management program to show “Sale Pending.”
130. Review buyer’s credit report results–Advise seller of worst and best case scenarios.
131. Provide credit report information to seller if property is to be seller financed.
132. Assist buyer with obtaining financing and follow up as necessary.
133. Coordinate with lender on discount points being locked in with dates.
134. Deliver unrecorded property information to buyer.
135. Order septic inspection, if applicable.
136. Receive and review septic system report and access any impact on sale.
137. Deliver copy of septic system inspection report to lender and buyer.
138. Deliver well flow test report copies to lender, buyer and listing file.
139. Verify termite inspection ordered.
140. Verify mold inspection ordered, if required.
Tracking the Loan Process
141. Confirm return of verifications of deposit and buyer’s employment.
142. Follow loan processing through to the underwriter.
143. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale.
144. Contact lender weekly to ensure processing is on track.
145. Relay final approval of buyer’s loan application to seller.
146. Coordinate buyer’s professional home inspection with seller.
147. Review home inspector’s report.
148. Enter completion into transaction management tracking software program.
149. Explain seller’s responsibilities of loan limits and interpret any clauses in the contract.
150. Ensure seller’s compliance with home inspection clause requirements.
151. Assist seller with identifying and negotiating with trustworthy contractors for required repairs.
152. Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed.
153. Schedule appraisal.
154. Provide comparable sales used in market pricing to appraiser.
155. Follow up on appraisal.
156. Enter completion into transaction management program.
157. Assist seller in questioning appraisal report if it seems too low.
Closing Preparations and Duties
158. Make sure contract is signed by all parties.
159. Coordinate closing process with buyer’s agent and lender.
160. Update closing forms and files.
161. Ensure all parties have all forms and information needed to close the sale.
162. Select location for closing.
163. Confirm closing date and time and notify all parties.
164. Solve any title problems (boundary disputes, easements, etc.) or in obtaining death certificates.
165. Work with buyer’s agent in scheduling and conducting buyer’s final walkthrough prior to closing.
166. Research all tax, HOA, utility and other applicable prorations.
167. Request final closing figures from closing agent (attorney or title company).
168. Receive and carefully review closing figures to ensure accuracy.
169. Forward verified closing figures to buyer’s agent.
170. Request copy of closing documents from closing agent.
171. Confirm the buyer and buyer’s agent received title insurance commitment.
172. Provide “Home Owners Warranty” for availability at closing.
173. Review all closing documents carefully for errors.
174. Forward closing documents to absentee seller as requested.
175. Review documents with closing agent (attorney).
176. Provide earnest money deposit from escrow account to closing agent.
177. Coordinate closing with seller’s next purchase, resolving timing issues.
178. Have a “no surprises” closing so that seller receives a net proceeds check at closing.
179. Refer sellers to one of the best agents at their destination, if applicable.
180. Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.
181. Close out listing in transaction management program.
Follow Up After Closing
182. Answer questions about filing claims with Home Owner Warranty company, if requested.
183. Attempt to clarify and resolve any repair conflicts if buyer is dissatisfied.
184. Respond to any follow-up calls and provide any additional information required from office files.
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7 Questions to Ask a Home Inspector Before Your Home Inspection Even Begins
Given a Home Inspector is charged with checking out a home for any flaws before you buy it, s/he’s an important safeguard who could protect you from purchasing a lemon—and squandering tons of cash in repairs.
So, how do you find a reputable home inspector?
It boils down to interviewing home inspectors to gauge how thorough a job they’ll do. To help, here are some of the best questions to ask.
Bonus: This will also help you know what to expect! Knowledge is power, my friends.
1. “What do you check?”
A lot of people don’t know exactly what a home inspector is going to do… it’s a lot! A home inspector scrutinizes a long list of more than 1,600 features on a home. They inspect everything from the roof to the foundation.
Going into the inspection with a clear understanding of what the inspector can and can’t do will ensure that you walk away from the inspection happy.
2. “What don’t you check?”
There are limits. For instance, inspectors are restricted to a visual inspection – they cannot cut holes in walls for that look behind the curtain.
As a result, an inspector will often flag potential problems in the report and you will have to get another expert – a roofer, HVAC person, builder, electrician, or plumber – to come back and do a more detailed examination.
3. “What do you charge for an inspection?”
Home inspections usually cost between $300 and $600, though it will depend on the market, the size of house, and the actual inspector. Generally, you’ll pay the inspector the day of the inspection, so you’ll want to know in advance how much and what forms of payment are accepted.
Beware of inspectors who quote you a very low price. That’s often a sign they’re having trouble getting customers.
Spending on a good inspector will more than pay for itself in the long run.
4. “How long have you been doing this?”
Or perhaps more important: How many inspections have you done? A newer inspector doesn’t necessarily mean lower quality, but experience can mean a lot—especially if you’re considering an older home or something with unusual features.
5. “Can I come along during the inspection?”
The answer to this should be a resounding yes! Any good inspector will want prospective owners to be present at the inspection.
Seeing somebody explain your house’s systems and how they work will always be more valuable than reading a report, and it gives you the opportunity to ask questions and get clarifications in the moment.
If an inspector requests that you not join him, definitely walk away. Run!
6. “How long will the inspection take?”
Inspections often take place during the work week, when the seller is less likely to be around. Knowing how much time you’ll need to block out will keep you from having to rush through the inspection to get back to the office. You’ll get only a ballpark figure, because much will depend on the condition of the house. But if you are quoted something that seems way off – such as a half-day for a two-bedroom apartment, or just an hour for a large, historic house – that could be a red flag that the inspector doesn’t know what he’s doing.
7. “Can I see a sample report?”
If you’re buying your first home, it can be helpful to see someone else’s report before you see your own. Every house has problems, usually lots of them, though most generally aren’t that big of a deal. A sample report will keep you from panicking when you see your own report, and it will give you a sense of how your inspector communicates. It’s another opportunity to ensure that you and your inspector are on the same page.
Always remember that your Patrick Parker Realty Real Estate Expert has a network of trusted home professionals and experts we’ve been working with for years. Don’t be afraid to ask us for referrals.
Do you have Home Inspector nightmare stories to tell as tales of caution? How about Home Inspection successes? Share your comments the Patrick Parker Realty Facebook Page, Twitter or LinkedIn, or on our Instagram feed. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this one delivered straight to your inbox. You may unsubscribe at any time.
8 Things Interior Designers Notice the Instant They Walk Through Your Door
If an interior designer were to walk through your front door, like, right now, what would this professional think of the place you call home?
We’ll tell you right now: plenty. And that’s even before you’ve given the pro the grand tour. Interior designers, with their sharply honed sensibilities, can take in a space in seconds. In fact, these pros can’t help but make a ton of snap judgments—and typically these first impressions aren’t all that good.
In case you’re curious about what jumps out at interior designers when they first enter a home, here’s an unsettling glimpse. But don’t beat yourself up if you recognize your home in some of these scenarios; these flaws are common and entirely fixable. Read on for an inspiring home decor wake-up call.
1. A Wonky Flow
Does the furniture placement in your home promote good flow of traffic? Most living and family rooms have a focal wall that’s anchored by a fireplace or television, which means the chairs and couch should be arranged to face this point without causing you to walk awkwardly around them.
This can be a challenge with an open floor plan, with pieces defeating the whole ‘open’ idea.
The solution: Less is more. Remove extraneous chairs and side tables to create a natural path in and out of the space.
2. Poor Lighting
The wrong lighting can ruin even the best interior design.
If the overall look of your home is dark and drab it’s usually because there’s not enough of the right kinds of light.
Of course, we can’t all be blessed with a flood of natural light, but you can install what you need rather easily. Sit in each chair or section of the room, and determine whether you can read easily. If not, add in the missing table or floor lamps; don’t rely on one big overhead light. And opt for bulbs that boast a more natural feel.
3. Insane Clutter
Interior designers dream of a streamlined, junk-free look, which means their eyes will immediately come to rest on the hot mess that is your bookshelf.
Good rule of thumb… just because you have it doesn’t mean it needs to be on display. Pick and choose a few sentimental or interesting pieces to show off and put the rest away.
4. A Lack of Theme
Style continuity is a big one for design pros. If your pieces don’t work well together or there’s no unifying color or theme to the rooms, the whole look can feel off.
This seems to come from a lack of understanding of the style elements and characteristics of the pieces in the room. Too many colors, in particular, can create a sense of disorder. Make it better by choosing a neutral palette and then introducing just a couple of coordinating hues.
5. That (Ahem) Smell
Interior designers make snap judgments not just on what they see, but also on what they smell. As a homeowner, you’ve become inured to your own odors, but an outsider can nail a scent right away.
Pets are the most obvious offenders, followed by cooking smells and odious candles. Fortunately, the remedy is an easy one; open the windows as often as you can to air out stale spaces (especially in bedrooms and the kitchen).
6. The State of Your Loo
The hard truth: Your bathroom must be pristine!
Interior professionals (and potential buyers) will look with a critical eye at every bathroom in your home, and a dirty one will convince them that the entire home isn’t clean, even if it is. Towels must be fresh, grout should be clean, and definitely clear your counters of personal items (makeup, hair dryer, toothbrush).
7. No Sense of Scale
We’re talking tiny lamps on huge tables, or king-size beds squeezed into too-small rooms.
Layout and scale is more noticeable than you think. Sometimes it’s a result of buying a whole package at the furniture store instead of choosing complementary items in the correct sizes for your home.
To fix this, try to mix and match your styles and the stores where you shop. You’ll end up with a more interesting, inviting space.
8. A Lack of Personal Style
Let it shine! A lack of personality in a home means your space will appear boring or sterile. Even worse is a look that’s been copied directly from a catalog. A designer can certainly help you develop a style, but you can also jazz up your abode with art you love, mementos from a faraway trip, or a collection that has special meaning.
What’s your biggest interior design challenge? What have you completely aced you’d like to boast about? Share your comments and pictures on the Patrick Parker Realty Facebook Page, Twitter or LinkedIn, or on our Instagram feed. And don’t forget to subscribe to our monthly HOME ADVICEtm email newsletter for articles like this one delivered straight to your inbox. You may unsubscribe at any time.
Avoid These 5 Major Mistakes People Make When Hiring a Mover
Moving is stressful. And when you’re busy finding a new place to live, selling your current home, and then packing up your entire life, selecting the crew who will move your stuff is likely last on your to-do list. That’s ironic, because you’ll be entrusting them with all your life’s possessions.
Even if you manage to hook up with The Most Amazing Moving Company Ever, we can’t promise bad stuff won’t happen. But you can prevent some unnecessary duress if you have the right team in place. The process starts by schooling yourself in what not to do.
Here are five of the top mistakes people make when hiring a mover…
1. Waiting too long
So you’ve wait until the weekend before your move to make those calls to moving companies. Well, if you procrastinated in your search, you won’t leave any time to do adequate research and get estimates. That means you might not get the best rate (spoiler: Moving’s expensive!) and worse – you could get scammed.
Plus, delaying selecting a mover can reduce your options – and unfortunately, unlicensed and unethical operators rely on this aspect of human nature to take advantage of consumers.
Take the time to get three in-home written estimates and, time permitting, visit the moving company in advance of making your final decision.
2. Being a total cheapskate
No, you don’t want to pay more than you have to for a move. But beware of being too budget-conscious.
One of the biggest mistakes you can make is going with the cheapest estimate. The cheapest bid typically means that the company uses casual, inexperienced laborers who don’t care a whole lot about your belongings.
Conversely, higher-end estimates almost always assure trained, professional, and experienced crews who will show up, smiles on their faces, and move your stuff safely and efficiently.
In other words: If there is a hiccup, they will figure it out. They’re not leaving your stuff on the front lawn.
Disreputable movers often lure customers with lowball prices and then hit them with unreasonable charges or, in extreme cases, even hold their belongings for ransom.
This actually happened to an educated member of the Patrick Parker Realty team after being displaced by Hurricane Sandy. There weren’t many choices due to so many displacements, but this member of our team did all her research. However, when the movers showed up that day, they turned out to be an outsourced crew by the original moving company she had hired.
So be diligent from the time they arrive at your door. Look for consistencies and inconsistencies, such as license numbers that should appear on the moving truck. Make sure everything that was discussed beforehand, is what is being delivered the day of your move and all paperwork being presented to you before the work begins aligns with all conversation and paperwork you’ve kept during the research process.
3. Not asking the right questions beforehand
A professional mover will be happy to answer any questions you may have, so if they seem uncertain or won’t give you straight answers, that’s probably a mover to avoid. Ask them about the moving process so you understand what they will be doing and when they will be doing it, from start to finish.
Here are some questions we recommend asking before selecting a moving company:
• Are you licensed and insured?
• Are you a certified professional mover who meets the standards of the American Moving & Storage Association?
• Are you a member of your state’s moving association?
• What price are you willing to put in writing as a “not to exceed” threshold price?
• What are the dates you can commit to for pickup and delivery for my move?
• Can you give me some references of people you have recently moved?
• How are your crews selected?
• Have you ever done business under another name?
• What actions do you take to ensure that the people who come into my home are skilled, professional, and safe?
4. Falling for fakes
The internet is awesome. right? Whether you’re looking for comprehensive info on the best mortgage rates, or you simply must know immediately the name of that song that goes; “da-da-da-da-dah-ooh-ooh-yeah”, the web is there for you.
And it’s there for you to find your next mover, too. But we shouldn’t have to tell you that online info can lead you astray. Double check your info by getting moving company referrals from an industry trade association or use a site that verifies and vets moving companies.
Sure, there are sites like Yelp you can rely on, but don’t do yourself a favor thinking that if you use a pay-for site like Angie’s List that the search results are any more credible. Our aforementioned team member, that’s where she first found her mover before she performed her interview and research. When she contacted Angie’s List to make them aware of what happened, she was told that their listings are paid listings and they do not vet the businesses on their site. That is disturbing given what Angie’s List and other site’s like these imply in their ads.
Another word of caution: Beware of blindly trusting that the company you’re hiring is who it says it is… another scheme; some disreputable movers try to lure customers in by using names that are similar to reputable companies. Check the reputable company’s website to make sure the local agent is affiliated with the brand name it is claiming.
In addition, disreputable movers are often changing their name to escape consumer groups and bad reviews. Be cognizant of where your Mover is located on Google Maps and if there was ever another moving company located at that address, it a red flag. Sometimes you’ll find, as our team member did, there’s not even an office located at that address.
According to the American Moving & Storage Association, the lack of a physical, local address is a telltale sign of a fake mover. Here are other red flags:
• No federal motor carrier number, which shows the mover is registered with the federal government for a state-to-state move
• Movers who refuses to visit your home to provide a written estimate for an interstate move… Responsible moving companies will provide in-home estimates and explain why the pricing is the way it is
• Movers who seem uncertain or unresponsive, especially when asked about their claims process if something gets damaged or lost
Ultimately, add this to one of the many reasons you should never buy or sell without a Real Estate Agent. Your Agent has a huge network of trusted professionals that handle every aspect of the buying/selling/moving process. Do not hesitate to ask your Agent for a Moving Company referral.
5. Agreeing to pay a deposit or pay in cash
If you’re moving across town, this one’s a huge red flag.
Typically, you should not be required to pay a deposit to have your items moved, most companies request payment at the time of delivery.
If you’re moving out of state, your moving company could request a deposit. But make sure it’s reasonable.
A reasonable down payment should be in the hundreds of dollars toward your state-to-state move, rarely exceeding 20%.
Similarly, avoid movers that demand cash instead of allowing payment by credit card.
We hope you don’t, but do you have moving horror stories to share? What tips would you add to our list? Sound off on the Patrick Parker Realty Facebook Page. You can also visit our Twitter, LinkedIn or Instagram feeds. And don’t forget to sign up for our monthly HOME ADVICEtm email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
Mega Tips for a First-Time Home Seller
Homeowners don’t generally think about filling the shoes of a first-time home seller until they decide to buy a new home. Usually, the motivating factor is the need to move — due to work-related issues or the needs of a growing family — and that generally involves buying another house. It’s when the homeowners stop to consider the move that it may dawn on them, yes, because they need to sell, they are now a first-time home seller.
FREE DOWNLOAD: The Ultimate Home Sellers Guide
Selling a home is very different from buying a home. Whereas buying a home generally involves emotions and feelings, selling a home typically centers on what listing agents like to call maximizing profit potential.
Here are the key steps to keep in mind as a first-time homeseller to sell your home fast and for top-dollar:
1. Price Your Home Accurately
To price your home accurately you need the assistance of a reputable Listing Agent. This is not the time to choose your cousin’s sister-in-law, for example, who dabbles in real estate. You’ll fare much better if you select an experienced real estate agent who sells a fair number of listings, preferably in your neighborhood.
RELATED: What’s My Home Worth? Find Out Now!
Your Agent will analyze comparable sales and prepare an estimate of value often called a CMA, for comparative market analysis. It is OK to use real estate websites to get an idea of this figure, but you’ll soon learn the variances your agent will point out because your they have the experience and education to provide you with a more accurate opinion of value.
2. Prepare Your Home For Sale
Ask your Listing Agent to advise you on preparing your home for sale. Most homes show better with about half of the furniture removed. If a buyer walks in the door and wonders if anybody lives in the house, you’ve done your job correctly. Consider home staging to boost your selling power and appeal.
Painting is the single most effective improvement you can make. Don’t let dings in the woodwork or scraps on the walls make your home reflect deferred maintenance.
3. Be Flexible with Showings
If home showings are too much of an imposition, consider going away the first weekend your home is on the market. Yes, it can feel a bit intrusive to allow strangers to trek through your home and check out your soft-closing drawers in the kitchen. The best way to sell your home is to let a buyer inside with her buyer’s agent to tour in peace and quiet.
Leave the house when buyer’s agents show up. Anything you say can and will be used against you, plus, buyer’s agents prefer to show without interference
4. Allow An Open House
Not every home is a viable candidate for an open house. If your home is located in an area close to major traffic, that is generally indicative of a reasonable expectation that the open house signs will pull in visitors.
Ask your Listing Agent if they advertise the open houses online. Many a home buyer has had no desire to buy a home until she spots an open house and subsequently falls in love.
5. Review Your Listing Online
Look at your home listing on various websites to make sure the information conveyed is accurate. Agents do their best to ensure accuracy, but since it is your home, you know the details better than anyone. If you spot a feature that is missing, contact your agent and ask for an inclusion.
6. Try to Respond Promptly to A Purchase Offer
Many offers contain a date by which the offer expires. Notwithstanding, it can drive buyers crazy if they are forced to wait for a seller to decide whether to accept their offer or to issue a counter offer. Remember, if you are selling because you need to buy a new home, you are no different when you are a home buyer yourself.
7. Line Up Your Movers Early
If you are thinking about moving during the summer, for example, which is a very busy time of year for movers, you might find it is impossible to locate movers for the day you want. You can start packing before your home hits the market, which will give you a head start on the process. It will also give you peace of mind to be prepared. Selling can be stressful enough.
Are you a first-time home seller? What tips do you have to add to our list? Sound off on the Patrick Parker Realty Facebook Page or our Twitter, LinkedIn or Instagram feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
Home Staging Ideas for the Kitchen to Make Buyers Bite
If you’re selling your house, staging—the mysterious practice by which you prep and prettify your home before its debut—can make a huge difference in catching the attention of buyers and ultimately reeling in an offer. And the room you’ll really want to focus on here is the kitchen: After all, it’s the crown jewel that buyers ooh and ahh over—except when the counters are packed with stacks of mail, near-empty boxes of Cheerios, and a hulking Cuisinart you rarely use.
FREE DOWNLOAD: The Ultimate Home Sellers Guide
To make sure this critical area is perfectly poised to woo buyers, try these home staging ideas for your kitchen and get some offers cooking.
1. Clear off counters
Put it away—put it all away. We’re looking at you, coffee maker, blender, knife block, standing mixer, and toaster oven. “nd don’t forget the top of the refrigerator. Home staging in this room is all about making your kitchen look bigger, cleaner, and more streamlined. Sometimes you become accustomed to your own clutter, so much so it may become invisible to you.
And while you’re in purge mode, remove every bit of paper and those souvenir magnets from the refrigerator and cabinets. The only thing you should keep on the counter is a pop of color, such as a pretty bowl of bright green apples or lemons.
2. Scour for hours
Well, no one’s actually logging the time spent, but cleanliness is critical here. Not only must you clean the countertops, but the grout, faucet, and grimy drain rim, too.
Try CLR (calcium, lime, and rust remover) on the faucet to make sure water flows through it smoothly. Clean cabinet fronts to remove dust and grime, and scrub greasy spatters on the stove and backsplash with a vinegar-water solution.
And if you have a stovetop with burns or food rings, remove them with a soft soap product and a razor blade—it’ll look almost like new.
3. Light it right
Let as much natural light into the space as you can, by either opening heavy drapes or replacing them with sheer panels. Have a kitchen that looks out to a patio or deck through glass doors? These must sparkle in order to illuminate the space.
And if you don’t have under-cabinet lights—get them. You can purchase battery-powered puck-shaped lights for very little money and stick them under the cabinets (it adds that extra glow that every cook covets).
4. Organize the insides
Potential buyers are going to open the fridge and pantry, so don’t neglect these spots when you’re staging the kitchen. People who are looking for a new home will imagine how their pots, pans, and food items might fit into your cabinets.
Consider stacking cookbooks or displaying clear storage containers to drive home the kitchen’s function. Plus, clear containers take up less space visually.
5. Set the scene
Some experts recommend setting the table with colorful plates and napkins to give the kitchen a homey feel.
Consider presenting a picture of everyday life by having a unique planter on the countertop wit blooming flowers alongside a carafe of orange juice for color and a rolled-up newspaper.
Are you selling or have you recently sold your home? How did you make your kitchen the WOW factor? Sound off on the Patrick Parker Realty Facebook Page, on our Twitter or LinkedIn feeds or on Instagram. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
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