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.
SELLERS. 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
- Down Payment
- Equipment, Maintenance and Condition
- Personal Property and Fixtures
- Financing Terms
- Purchasers Representations
- Access to Property
- Termite Inspection
- Damage and Loss
- Possession Date
- Broker's Fee
- Attorney's Fees
- Void Contract
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.