Project management principles can be applied to the home sale process to provide a structured process for visualizing the complexities of the task to be undertaken. One of the fundamental tools of project management is the Work Breakdown Structure or WBS. The WBS is a visual representation of the major units of work in a project. A real estate transaction has known steps along the way. Here is a WBS for a typical residential real estate transaction ...
Pre-Sales activities | Market activities | Offer selection & negotiation | Contract performance | Closing |
Cost Plan | List on MLS | Selection criteria: price & terms | Contingency tracking | Escrow closing |
Deferred maintenance | Broker Tour | Seller’s NET sheet | Document delivery | Recording of documents |
“Curb Appeal” maintenance | Internet marketing | Risk analysis | Additional inspections | Key turnover |
Home staging | Virtual tour | Counter offer | Escrow instructions (California) | HUD-1 review |
Valuable & Misc. to storage | Collateral & signage | Offer acceptance | Last minute problem resolution | Junk fee receipts |
Temporary housing | Neighborhood marketing | Offer rejection | Contingency release | Insurance & warranty document review |
Open escrow (California) | Open house | Risk mitigation plan | -- | Lessons learned |
Inspections and reports | Weekly market updates | -- | -- | -- |
Disclosures (California) | Feedback from showings | -- | -- | -- |
Correct price | Price adjustments | -- | -- | -- |
Across the first row of the WBS, we have 5 major activities of the transaction process. Down each column are some of the major units of work that is part of that activity.
These choices of columns and work units will differ according to the seller, property, market conditions, customs and traditions on how real estate is practiced in various areas of the country, so I have tried to be as generic as possible while still preserving the basic structure of a residential real estate transaction.
Paul Caloca
Realtor, EcoBroker
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