JUST WHAT IS IT THAT REAL ESTATE LICENSEES DO?? Part I.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

JUST WHAT IS IT THAT REAL ESTATE LICENSEES DO??  Part I.

"YOUR MISSION, SHOULD YOU CHOOSE TO ACCEPT IT . . . "  is to manage the orderly transfer of real property from a seller to a buyer.  The average consumer doesn't understand a fraction of what we do to help them accomplish their goal. 

Home for SaleSELLERS.  Home sellers are presented a simple-to-complex marketing plan by listing agents prior to listing the property for sale.  The listing agent promises to perform a series of showing, advertising activities geared to receiving contract offers.

BUYERS.  Buyers are assisted in their home search by agent(s) who helps to locate, tour properties for sale, write and negotiate the contract and arranging for settlement services.  

Sounds easy doesn't it?  Actually it is, in the hands of experienced listing and buyers agents and if nothing unusual occurs

THE MOST HELPFUL AND LEAST UNDERSTOOD PART OF LISTING AND SELLING REAL PROPERTY is the complex and institutionalized systems which include the brokerages employing the licensed agents and brokers, the Multiple List Systems that make the homes for sale information available to licensees and now to the public, the board approved forms that provide consumer protections,  

Achieving the consumer's goal of selling or buying real property requires the services of a variety of service providers in addition to the real estate licensee.  Achieving the orderly transfer of real property from a seller to a buyer requires services of vendors that perform critical tasks to help the consumer achieve their goal.  The vendors include but are not limited to:  mortgage providers, home inspectors, termite/radon inspectors, appraisers, title services which include or are managed by attorneys. 

WOW!  How do we keep up with all of these tasks that are necessary to get to the settlement table?  I'm going to disclose a secret that will help many consumers understand how things can go so smoothly and the consumer's goal of selling and buying real estate is achieved. 

IT'S ALL IN THE CONTRACT!

That's right.  IT'S ALL IN THE CONTRACT!

Getting to the settlement table begins with the selection of an experienced listing or buyer's agent who will MANAGE THE CONTRACT OF SALE.   To demonstrate the importance of understanding contract management, below are the titles included in a typical Contract of Sale.

  • Description of Real Property
  • Price and Financing
  • Deed of Trust
  • Deposit
  • Down Payment
  • Settlement
  • Equipment, Maintenance and Condition
  • Utilities
  • Personal Property and Fixtures
  • Financing Terms
  • Appraisal
  • Purchasers Representations
  • Access to Property
  • Termite Inspection
  • Repairs
  • Damage and LossContract of Sale
  • Title
  • Possession Date
  • Fees
  • Broker's Fee
  • Adjustments
  • Attorney's Fees
  • Performance
  • Default
  • Assignability
  • Definitions
  • Void Contract
  • Warranty

Listing agents and Buyers agents must not only understand the meaning and execution of each of these titles, they should help the seller or buyer understand the meaning of all parts of the contract that apply to their particular transaction. 

Next:  What Real Estate Licensees Do Not Do.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

 

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Re-Blogged 17 times:

Re-Blogged By Re-Blogged At
  1. Daniel J. Hunter 11/16/2009 04:18 PM
  2. Esko Kiuru 11/17/2009 12:37 AM
  3. Gabe Sanders 11/17/2009 06:10 AM
  4. Kathryn Gorham 11/17/2009 06:31 AM
  5. Allison Stewart 11/17/2009 07:33 AM
  6. Joyce Thomas 11/17/2009 08:25 AM
  7. Erica Ramus 11/17/2009 03:37 PM
  8. Tammi Copsey 11/17/2009 03:54 PM
  9. Jackie Connelly-Fornuff 11/17/2009 05:01 PM
  10. Joyce Kelley 11/17/2009 09:53 PM
  11. Asiyah Ali 11/18/2009 05:48 AM
  12. Chris Minion 11/19/2009 10:18 AM
  13. David O'Doherty 11/19/2009 08:48 PM
  14. Sybil Campbell 11/20/2009 10:36 AM
  15. Judi K Barrett 11/22/2009 08:45 PM
  16. Phil Graves 11/24/2009 08:23 AM
  17. Frank Harris 11/30/2009 11:00 AM
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Show All Comments
Ambassador
2,371,002
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

David.  Indeed.  I agree. 

When a buyer has doubts I can point them to the contract and say, "Remember this?"

When a seller is misbehaving, I can point to the contract and tell the listing agent, "They agreed in the Contract. . . . ".

Nov 20, 2009 03:39 AM #65
Rainmaker
37,455
Terje (Terry) Aaslid
Realty ONE Group - Chandler, AZ
Foreclosed homes / New Homes
Thanks for sharing with us!

Nothing beats reading Active Rain Posts with the morning coffee!
Nov 20, 2009 09:46 AM #66
Rainer
8,246
Colleen Fantini, Northeast Cincinnati Realtor
Comey & Shepherd Realtors - Landen, OH

Thank you Lenn for a great post!  While it's a great piece to share with the public, it's a shame more real estate agents don't understand the extent of our job!  I can't believe how many agents I encounter who just don't get it.

Nov 20, 2009 09:48 PM #67
Ambassador
2,371,002
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Terry.  Thanks for stopping by.

Colleen.  My buyers understand the extent of what I do for them because I let them know.

Nov 21, 2009 04:36 AM #68
Rainer
234,112
Phil Graves
utahbuyeragent.com - Orem, UT
Utah Buyer Agent

Lenn -

I had to reblog this as well.  What an informative post.

THANKS!!!!!

 

-Phil Graves-

utahbuyeragent.com logo

Nov 24, 2009 08:28 AM #69
Rainer
7,730
Chris Baynes
Coldwell Banker Sea Coast Realty - Wilmington, NC

So true.  I have been in this business full time since 2001.  Every contract brings up a new challenge or a unique twist on a common challenge that must be handled very carefully!

Nov 24, 2009 11:29 AM #70
Rainer
88,760
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

Lenn,

Wow, such a thorough post!  Not only are there so many players but the rules keep changing!

Nov 28, 2009 04:32 PM #71
Rainmaker
563,876
Mike Saunders
Lanier Partners - Athens, GA

Lenn - great list, concisely put, a little more friendly than the list of 180 things realtors do. I never thought of using the contract for a source of my activities.

Dec 02, 2009 02:30 PM #72
Rainmaker
267,002
BethAnn Long
RE/MAX Inland Empire - Spokane, WA
Realtor, CRS, e-PRO, Spokane Wa Real Estate

Thanks! I am tired!

I once wrote a post 101 things your Realtor does. And that is the SHORT LIST!

Dec 03, 2009 09:55 PM #73
Rainmaker
208,127
Terrylynn Fisher
Dudum Real Estate Group - BuyStageSell.com - Walnut Creek, CA
HAFA Certified, EcoBroker, CRS, CEP Realtor, Etc.

Lenn, how right you are.  A poorly written contract is hard to work through when challenges come up.  Thanks for the reminder that we must be diligent and learn our craft.  It's important to our success  that the clients are protected and served properly.

Dec 04, 2009 03:36 AM #74
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Phil. Thanks for the reblog. Spread the word.
Dec 04, 2009 04:39 AM #75
Ambassador
2,371,002
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Chris. Indeed. The best experience is gained through actual transactions and each transaction follows that contract of sale.
Dec 04, 2009 04:41 AM #76
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Christine. The rules AND THE CONTRACT do keep changing. The contract is the easiest way to stay on top of the changing rules. Simple and so true.
Dec 04, 2009 04:42 AM #77
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Mike. Absolutely, use the contract as a guide to the process. Folks get in trouble when they try to act outside the contract of sale.
Dec 04, 2009 04:43 AM #78
Ambassador
2,371,002
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
BethAnn. First and foremost, the agent should "follow the contract".
Dec 04, 2009 04:45 AM #79
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Terrylynn. Indeed. Agents who try to play lawyer by writing addenda and changing the actual contract are likely to get themselves in trouble and cause harm to their buyers or sellers.
Dec 04, 2009 04:46 AM #80
Rainer
105,008
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

Lenn

I have been off AR for a while, and decided that one of the best ways to catch up would be to look back accross some of your posts...

Another home run for you.......nice job

Dec 07, 2009 05:06 PM #81
Ambassador
2,371,002
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Thanks Mike. I'm a tad behind these days because my DSL is out and I'm working on a dial up. Welcome back and enjoy.
Dec 07, 2009 06:16 PM #82
Rainmaker
106,979
Linda DeRusha
Coldwell Banker Advantage - Garner, NC
Broker/Realtor, ABR,ASP,CDPE

Lenn,

Thank you for this well thought out post. Do I really do all that? It seems like we have to know an awful lot to be real estate agents, don't we? Most of the time, we just do whatever needs to be done and we don't realize how many different things we are doing every day to get our clients to the closing table. Thanks for the insight.

have a great day

linda w derusha

coldwell banker advantage

clayton nc 27520

Dec 07, 2009 08:02 PM #83
Rainmaker
208,127
Terrylynn Fisher
Dudum Real Estate Group - BuyStageSell.com - Walnut Creek, CA
HAFA Certified, EcoBroker, CRS, CEP Realtor, Etc.

Thanks Lenn, Real Estate 101 is second nature to us, but our clients need to know the steps.  I think sometimes we want to make it look easy and just don't communicate all the steps.  Thanks for taking the time to do so. 

Dec 09, 2009 02:02 AM #84
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Lenn Harley

Real Estate Broker - Virginia & Maryland
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