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

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

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
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 Loss
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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Posted by Lenn Harley, Real Estate Broker, Virginia & Maryland on 11/16/2009 03:52 PM

Comments (84)

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

NOV

2009

Lenn ---- wow, can't believe that I am actually the first to comment on this great post. Hopefully, a lot of consumers will read it. You are right, if things so smoothly, it is because of the good job their real estate agent does.

Wow is right! A good agent has to keep up with all the details to make sure it does go smoothly and that's why it is important to pick a good agent not just anyone.

Nice post Lenn as usual!

Liz. Shucks. It only took 7 minutes for you to comment. Thanks for dropping by. I will never cease to let the consumer know how important the role of the agent.

June. Agreed. Real estate is complicated and consumers can be greatly helped by a good agent.

Lenn, You wrote my favorite words "It's all in the contract". How many times have you heard agents, sellers and buyers ask questions post contract about what, when, how and who? The answer is almost always IN THE CONTRACT! Read it and understand it before it's signed. That goes for agents too.

Unfortunately, not all real estate agents take the time to go through this with consumers.

Lenn,

Well said and well written. You made some great points here. It is all in the contract. Thank you

Re-blog!

We don't do much do we? All that and then some.

Your commission amounts are actually on the purchase agreement? You have a lot of differences in your list, that what we have. But that one really jumped out at me. The commission agreement is on the listing agreement, since the seller pays it, and if any changes are made, they're done on documents between the brokerages. We do all we can to keep the transaction between the buyer and seller, only between them. Any extraneous agreements are kept seperate, so we only look professional (no commission bickering) in the eyes of our clients. As a matter of fact, if an agent submits on Offer to Purchase, with the commissions written on the bottom, I call them and tell them I'll be crossing those out so the client doesn't perceive us as petty, and tell them to submit a seperate agreement to our brokerage if they have a concern. Otherwise, we are required to pay whatever commission amount is listed in the MLS.

I'm sure your contracts have verbiage that keeps everything professional, in order for it to be seen by your clients. I just thought I'd share this difference =)

Great list. I dont think enough folks understand what agents do to help them.

Lenn, most consumers really aren't aware of all we do. Thanks for the post.

Lenn,

It is easy to take a good agent for granted when everything is tooling along like it should. A consumer might not even realize that things are smoothly zooming along BECAUSE they have a great agent. However, when you have an escrow with an agent who doesn't understand their job, you can see the difference all right. Great post.

NOV

2009

Lenn,

This gives consumers something to think about. Well, actually a lot to think about. A professional licensee needs to be able to handle multi-tasking and then some. Re-blog time.

Bryant. Indeed. I've been harping this for many years. (Yes, I do harp.)

There has never been a time when an agent or consumer asked a question about a transaction when the answer was not in the contract.

Theodora. It's part of our job to make sure the consumer understands their contract.

Kim. Absolutely. Smart agent rely on the contract rather than opinion.

Laurie. Thanks.

Jim. Indeed and that's just the titles.

Lisa. Where on the list is "commission amounts". The list includes "Broker Fees".

What "Broker Fees" in the contract means is that the Settlement Agent to pay the brokers the fees as set forth in the Listing Agreement which is reflected in the MLS listing and the Co-Op.

Which should be of interest to agents who list and sell Short Sales since often the Contract is ignored in that case. Not, I might add, by this broker.

James. They have not a clue about what we do.

Maggie. My pleasure. Folks do not know what we do.

Fran. Thanks. That's the point of this post.

Esko. Thanks. I appreciate it. There are a dearth of gold stars around and a reblog gets the word out.

Lenn, terrific post. And, since it's part 1, I'm sure there's more to come. So, I won't interject any additions here. But I will be re blogging this one. Thanks.

Lenn, This is great information for fellow agents, clients and customers - thanks for the series - I am reblogging this one too.

Great post. I remember back years ago I saw a list of "what we do". Maybe if more consumers saw this they would realize the value a Realtor brings to the transaction. Keeping it smooth, within time lines is what we do. And- so true- "it's in the contract". Time and time again I point that out.

Love how you presented this!

Yes, it is all right there in the contract.

Most agents or Realtors just need the experience to know. Like a mentor in many cases. I am training two buyer agents right now. One is brand new. One has been around for a few years. However, both lack experience, so I am hand holding right now.

Excellent, I will reblog in a day or two.

Some very good thoughts. There is a lot of info we need to know, but that is our job. Explain things correctly to your clients and you should have no issues with them understanding the work you do.

Lenn, I just commented on Kathryn Gorham's reblog of this. It is up to your usual high standards. May I copy and use in my presentation package?

Great explanation Lenn -- there is a lot of meat in each one of those bullets and knowing customs, protocol and having prior experience with how to handle issues when they come up as well as being pro-active to minimize or eliminate potential issues is also critically important. Tese are all things the average consumer doesn't realize until they choose an agent who doesn't do a stellar job and they then understand the full impact.

Lenn,

This is wonderful.

Invariably when I list one that has problems either with title, surveys, etc. they bought it without the assistance of a licensee! When we get into the problems, I ask them who their broker was and they will say that they didn't use one.

And sometimes this is a professional person that should have known better!

Like Missy, I will reblog in a day or two.

Thansk!

Lenn, this is a great post! Very informative and I hope a lot of buyers will read it. Thanks for the detail!

Lenn - The list of what we do contractually continues to grow as more and more forms are required to complete a transaction. Add to that, all of the marketing ... it takes many hours in pre-marketing and ongoing marketing to ensure a home is exposed to get to the settlement table. Looking forward to reading part 2.

Lenn, great information! My broker's favorite words are, "What does the contract say?" It is all there in the contract, if you will just remember to read the darn thing!

Of course, then there's the interpretation part too! LOL

The best continuing education class I have ever taken was on contracts (because our GAR contract had significant changes) and now I take this one annually and it so helps to better explain to buyer or seller. I also require all my agents take this class.

Wonderful post! Congratulations on being featured!

Lenn,

Now, this is one of those posts where nothing needs to be added, and the conversation generally goes something like, "this is such great information..."...

I don't want to just say "great post" (which it is)....I'm curious to know exactly how many times we must reiterate the points in the contract to either buyers or sellers, as the listing agreement is a contract, and a buyer-brokerage agreement is also a contract. I go through both in great detail with my clients at the beginning, and sometimes I wonder if they were either paying attention, or if I didn't explain it clearly enough....

Lenn, great post. Some people think we don't do enough and others think we should be overwhelmed with all the coordination efforts. I like the phrase, 'It's all in the contract'.

Lenn - I've never seen this stated more clearly! On a cross-country drive last year, I began a list of things we do to sell a home and later organized it by major steps in the process. It's now an appendix to my listing presentation - I don't go over it, but always provide one to my sellers with the footnote that it is a work in progress. Sellers often tell me later that they found it very interesting so I guess they do read it.

Gabe. Thanks. Indeed and part 2 will be an examination of things we don't or shouldn't do.

Kathryn. Thanks for the ReBlog. This conversation would be of help to many agents and consumers.

Dick and Dixie. Indeed. If the consumer only knew how complicated real estate transactions can be, they'd look for experienced licensees to assist them.

Allison. Thanks.

Missy. All in the contract and yet, many consumers, licensees at all levels are quick to ask an opinion before reading the dang contract. It amazes me. I get calls regularly with "what do you think?" to which I reply that what I think isn't worth $0.02. What does the contract say?? Folks simply avoid reading it.

We are a jack of all trades type person.

Dave. Right and we can't be too careful about what tasks we take on.

Marian. By all means. Just don't copy and paste on a web site. Thanks. Actually, sometime within the next few weeks, I'll convert this into a flyer and put it on Homefinders.com available for reprint. Of course, not republish.

Chris. You just gave me an idea to take some of these titles and make them into an information post. Goodness, there's a wealth of information that the consumer doesn't understand.

Judi. That has been my experience over the years. Consumers with the most real estate problems are trying to do it themselves without the assistance of experienced agents.

Joyce. Thanks. I hope a lot of consumers read it. I may rewrite for a Localim post but I wanted to get ActiveRain comments on this first.

Kathleen. Of course, this list doesn't even get to the addenda required to complete a contract. Later.

Bob. Thanks. I do harp "What does the contract say?"

Tammy. HA! I take contracts CE in MD and VA and several different counties each and every year.

Ron and Alexandra. Thanks. The feature is always appreciated.

William. When working with a new agent, we read the contract totally word for ward in the beginning. When working with a buyer, I do the same from the perspective of what each paragraph means in terms of their specific contract. It's very enlightening for consumers.

Lyn. I'm a simple minded broker who tries to make every thing easy for consumers to understand.

Margaret. I have a selection of information flyers that I provide to buyers. However, for the contract, I do it verbally in case they have question.

Love your new photo. That is new, isn't it??

Charlie. You could say that. However, my next post in this series deals with matters that we do NOT handle.

Lenn,

Great series...I really think this is very valuable to the consumer and a great tool for me to help the consumer understand the importance of what we do...contracting is key...and I like the fact that you are addressing what we don't do as well.....that seems to be a constant issue...

Lenn, I watched a David Knox video seminar on "building your business". He interviews super agents and talks about the duties of the assistants. It is no wonder I'm tired! I have no assistant to do all that work. Nice post - as always.

I don't know why, but I find myself continually amazed at the number of licensees out there selling real estate who have never read the forms they fill out, they have literally not a clue what they are filling out! Travesty and unacceptable!!! It seems that many agents have no clue what their job is and no one seems to want to tell them...or perhaps they are choosing not to listen! Love the post!

Thanks for the great write up! Looking forward to the next installment.

Lenn, thanks for putting this in a nice easy to read outline. Hopefully putting this out there will give everyone a better understanding of what really goes on. Looking forward to part 2.

Lenn, it's all been said before up there, great post and thanks for putting it out there for everyone to review. You are absolutely correct, "It's ALL in the Contract", but so many agents fail to see it, read it, explain it. After I spent 12 years as an agent, I became an escrow officer for many years, and the main complaint I got from buyers and sellers, was that their agent didn't do anything and didn't tell them anything. Now that I have gotten back into the selling end of it again, I have made it my "mission" to not be included in that group. Can't wait for the next chapter.

yeah I think I need to go back and make sure I can explain the whole contract...thanks for the push...congrats on your feature.

Lenn, I am about 3 weeks into this AR thing, and I've been in the business for 6 years. I related to your posts immdeaitely and will continue to follow them. I am starting to recognize the key writers on this network and you are one of them. Thanks for sharing and I look forward to reading your future posts.

Lenn I think you are absolutely correct that consumers have NO CLUE what agents do. I know that I had no clue before I got into this industry. Glad you shared!

Lenn ~ FANTASTIC post!! Thank you for posting and being such an integral part of this community! And I hope you don't mind, but another RE-BLOG is coming!! Thanks again!

Thanks for writing this Lenn. RE-BLOGGED!

Erica

Wow Lenn. I love the way you presented this, I would like to re-blog also! Thanks for posting this and as usual I gain so much from reading your posts! Thanks for all you do!

Ciao from Atlanta!!!

Asiyah

Lori. Thanks. Hopefully, a few consumers will read this and if their agent doesn't explain the contract to them, the consumer will demand it or get another agent.

Gregory. I have a virtual assistant. Do assistants vacume??

Jeani. I too have had agents call me with questions about the contract or an event. I refer them to the pertinent paragraph in the contract and then a light bulb goes off.

James. Thanks. I'll get to it soon.

Jean. I too know and have known many agents who do very little for their buyers or sellers.

Tim. GOOD FOR YOU.

Lane. My goodness. Stick around and fasten your seat belt.

Emily. I don't really expect the consumer to understand the process. What I do expect is that an agent will explain a contract to their buyer or seller client so they know what's going on with their purchase or sale.

Tammi. Thanks for the reblog. Love the reblog. Get the word out.

Erica. Thanks again.

Asiyah. My pleasure and thanks for the reblog.

Wonderful post! I encourage all of the agents in our office to "reduce to the ridiculous" all of the services they provide. It always amazes the buyer or seller to know what we do to earn our money!

Lora. HA! My buyers know what I do for them because I tell them every step of the way.

Lenn, I gotta re-blog this! This is a great post! Thank you! :)

Hi Lenn ! - One of the biggest problems with contract explanation in my area is that agents sit down so they can say they 'went over it' with their clients, but all too many just breeze through it, talking 100 mph and almost sighing when a client slows them down or asks them to repeat something !!!!!!!!!!

Understanding the contract, and the transaction expectations, is a key part to making clients properly prepared for much of what to expect. (not the unexpected though of course ;o)

Cheers Lenn !

Sheldon

Lenn - This should be Real Estate 101! How can you possibly represent the best interests of our sellers and buyers if you don't understand or can't explain to them what they are signing?

It's so important for our clients to understand what we do because for many I think they just don't have any idea or think there's very little that actually needs to be done.

NOV

2009

Jackie. Thanks for the reblog

Sheldon. These agents are missing a wonderful opportunity to show their buyers and sellers that they are competent and understand the process. Further, if clients understand the process and what the paragraphs of the contract mean, such as default, the consumer will feel more comfortable that (1) they are in good hands and (2) they are less likely to default because of buyer or seller remorse.

Donna. I agree completely.

Christine. When our clients understand all the things we do to get them to settlement, they have a deeper appreciation of agents in general.

NOV

2009

Hello Lenn,

Great post and information! I always enjoy reading your blogs and learning! Thank you for the post! Looking forward to Part 2!

Chris

Thanks Chris. I'll get to it as soon as the buyers I'm working with are under contract.

This may sound sick but I actually enjoy reading contracts and picking them apart... so I can explain them.

How often have you seen dates put in with no understanding of what they mean?

I'll RE Blog this one.

NOV

2009

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. . . . ".

Thanks for sharing with us!

Nothing beats reading Active Rain Posts with the morning coffee!

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

2009

Terry. Thanks for stopping by.

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

NOV

2009

Lenn -

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

THANKS!!!!!

-Phil Graves-

utahbuyeragent.com logo

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

2009

Lenn,

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

DEC

2009

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

2009

Thanks! I am tired!

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

DEC

2009

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.

Phil. Thanks for the reblog. Spread the word.

Chris. Indeed. The best experience is gained through actual transactions and each transaction follows that contract of sale.

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.

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.

BethAnn. First and foremost, the agent should "follow the contract".

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

2009

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

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.

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

2009

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.

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Lenn Harley, Real Estate Broker, Virginia & Maryland

Leesburg, VA

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Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

Address: Lovettsville, Fairfax, Arlington, Alexandria, Stafford, Woodbridge, King George, Fredericksburg, Leesburg in VA., Rockville, Laurel, Columbia, Baltimore, Waldorf, Frederick, Eastern Shore, Bowie, Harford, Annapolis in MD. , Maryland, Virginia

Office Phone: (800) 711-7988

Email Me

Maryland and Virginia real estate agents and brokers serving buyers and sellers with experience. Search listings in Maryland and Northern Virginia and get daily updates of new homes for sale by e-mail. Contact Lenn for a tour of homes. REALTORS available every day for home tours. Homefinders network of experienced agents and brokers includes new home specialists, resale specialists and luxury home experts. We can help you with your home buying needs. Homefinders offers discounted 5% listings for Maryland, Northern Virginia home owners. Experienced agents helping buyers and sellers in the Washington Metro area since 1985.

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