Why Use a REALTOR®? [VIDEO]

Many homeowners and house buyers are not aware of the true value a REALTOR® provides during the course of a real estate transaction.

At the same time, REALTORS® have generally assumed that the
expertise, professional knowledge and just plain hard work that go into
bringing about a successful transaction were understood and appreciated.

Many of the important services and steps are performed behind the scenes by either the REALTOR® or the brokerage staff and traditionally have been viewed simply as part of their professional responsibilities to the client. Without them, the transaction could be in jeopardy.

Watch Video of the value of using a Greater Toronto Area REALTOR®! Not every real estate salesperson or broker is a REALTOR®. That term and the familiar Block “R” logo are trademarked by the Canadian Real Estate Association (CREA) in association with the National Association of REALTORS® in the United States. CREA also owns the MLS® trademark.

Both trademarked logos can only be used in Canada by members of CREA who accept and respect a strict Code of Ethics. The MLS® database is operated by member boards in various provinces and in Ontario by real estate boards belonging to the Ontario Real Estate Association (OREA).

The boards provide an ongoing inventory of available properties and ensure maximum exposure of properties listed for sale. Most resale homes in Ontario are listed and sold through the MLS® systems of a member real estate board.

For peace of mind, ensure the individual seeking to represent you is both a registrant of the Real Estate Council of Ontario and a member of OREA - permitted to be called a REALTOR®. Check the RECO website for a searchable list of registrants.

The Role of the REALTOR®
The typical actions, research steps, procedures, processes and review stages taken by a REALTOR® to complete a successful residential real estate transaction depend on the transaction. Some tasks may take minutes, hours, or even days to complete, while some may not be needed.

These tasks reflect the level of skill, knowledge and attention to detail required in today’s real estate transaction, understanding the importance of having help and guidance from someone who fully understands the process - a REALTOR®.

REALTORS® are pledged to uphold the stringent, enforceable tenets of the REALTOR® Code of Ethics in their professional dealing with the public. Remember, not every real estate registrant holds REALTOR® membership or MLS® access; make sure yours does!

Pre-Listing Activities

1. Make appointment with seller for listing presentation
2. Send seller a written or email confirmation of listing appointment and call to confirm
3. Review pre-appointment questions
4. Research all comparable currently listed properties
5. Research sales activity in the area from MLS® database
6. Research days-on-the-market for similar properties, location and price
7. Review property tax roll information
8. Prepare Comparative Market Analysis (CMA) to establish fair market value
9. Research property’s ownership and how it is held (deed)
10. Check municipal tax records for lot size
11. Verify the legal description from public records
12. Check Planning Department of municipal offices for current zoning
13. Check for land use restrictions or special zoning
14. Verify legal names in the Registry Office (or deed)
15. Prepare listing presentation with researched materials
16. Drive by the property to assess the curb appeal, compare with others in neighbourhood
17. Start formal office file on the property
18. Confirm school district and effect of schools on the property value
19. Determine whether property is subject to a shoreline road allowance (if applicable)
20. Review all pertinent information to ensure that it’s complete

Listing Appointment Presentation

21. Explain the various agency relationships using Working With a REALTOR® pamphlet and get acknowledgement that this has been reviewed with the seller
22. Give the seller an overview of current market conditions and projections
23. Review sales representative and brokerages credentials and accomplishments
24. Review and confirm all legal descriptions and ownership details
25. Measure exterior and establish the square footage above grade
26. Confirm lot size from owner’s survey - if no survey is available, make a note on the listing
27. Note any lot line fencing, easements and variances
28. Discuss with the seller the possibility of seller take back (STB) and other options
29. Review any appraisals that may have been made
30. Present CMA to the seller including comparable sold properties, current listings and expired listings
31. Offer pricing strategy based on experience and current market conditions
32. Discuss a marketing plan to meet the goals of the seller
33. Explain the advantages and power of Multiple Listing Service®
34. Explain the use and power of web marketing and www.realtor.ca
35. Explain the work both the salesperson and brokerage do behind the scenes and availability at night and on weekends
36. Explain the sales professional’s role in taking calls and screening for qualified buyers and curiosity seekers
37. Present and explain the strategic master marketing plan
38. Review and explain the Listing Agreement and obtain the signature of the seller - provide the seller(s) with copies

Once the Property is Listed

39. Measure and record all room dimensions
40. Obtain house plans if available
41. Make a copy of any house plans
42. Copy survey and retain in listing file
43. Advise seller of how showing appointments will be made
44. Prepare instructions for salespeople showing the property and confirm with the seller the best times to show to prospective buyers
45. Have Mortgage Verification Forms signed and submitted to mortgagee
46. Verify with lender any penalties, terms and current rates and if the mortgage can be discharged
47. Check on whether the existing mortgage can be assumed and under what terms
48. Confirm any Condominium Fees or Homeowner Association fees currently in effect
49. Get a copy of the Condominium bylaws, if applicable
50. Confirm supplier of hydro or any other provider of this utility
51. Calculate the utility usage for the past 12 months from seller’s records
52. Verify the availability of any septic bed layout or permits at time of installation
53. Water – if municipal, check on rates for the past 12 months
54. Well water – confirm well status and have Health Unit test so remedial steps can be taken if required. Advise of any abandoned wells on the property and put on the listing
55. Determine natural gas, heating oil or propane supplier’s name and telephone number
56. Note on listing any rented appliances i.e. hot water tank, furnace, etc.
57. Verify security system - owned, rented, terms and service terms
58. Ascertain if any lead-based paint, asbestos insulation, UFFI or other latent defect needs to be disclosed
59. Prepare a list of property features such as pool, sauna, whirlpool, landscape pools and special plants
60. Prepare a list of chattels included or excluded from the sale of the property
61. Compile a list of recent improvements, repairs or maintenance
62. Send letter to seller if property is vacant to advise insurance company
63. Explain the advantages of a lock box and have extra keys made
64. Verify if property has rental units. If so:
    1. Inquire as to whether they comply with the zoning by-law, fire and electrical safety
    2. Make copies of all rental agreements
    3. Determine ownership of any appliances or other chattels
    4. Verify and list all rental amounts and deposits held
    5. Inform tenant of the listing and discuss how showings will be handled
65. Arrange for installation of For Sale sign
66. Assist seller with filling in the Seller Property Information Statement
67. Give the seller a blank copy of the Agreement of Purchase and Sale and discuss it with them
68. Explain the offer presentation process and the possibility of multiple offers
69. Discuss the type of conditions that will likely be included in an offer to purchase
70. Discuss results of Curb Appeal Assessment, Interior Décor Assessment and discuss ways to improve appearances for showings
71. Arrange for Office Tour/Real Estate Association Tour and report comments back to seller
72. Load listing into personal database for transaction management

Entering Property in Multiple Listing Service® Database

73. Prepare and check MLS® data input sheet
74. Upload to Real Estate Board – MLS® Data Input
75. Proofread listing as it appears in www.realtor.ca
76. Take additional photos for uploading to MLS® and for use in flyer. Talk to seller about virtual tour possibilities

Marketing The Listing

77. Create both print and internet ads with seller’s input
78. Co-ordinate showings with the owner, tenants and other REALTORS®. Return all calls - weekends included
79. Install lockbox if authorized by the owner
80. Prepare personal mailing and contact list
81. Generate mail merge letters to contact list
82. Order “Just Listed” cards and handouts
83. Prepare flyers and feedback faxes
84. Constantly review MLS® listings to ensure property remains competitive in price
85. Prepare property marketing brochure for seller’s approval
86. Arrange for printing of approved brochure and distribution
87. Distribute property brochure to all company salespeople
88. Mail out “Just Listed” notices to the immediate neighbourhood residents
89. Advise company Network Referral Program of the listing
90. Provide marketing data to buyers coming through international relocation
91. Provide marketing data to buyers coming from referral network
92. Submit ads to company’s internet site
93. Price changes promptly conveyed to all databases and internet groups
94. Reprint supply of brochures as required
95. Update mortgage information as available to all marketing facilities
96. Follow-up feedback emails and faxes sent to representatives who have shown the property
97. Discuss feedback from showing representatives with the seller to determine if changes are required to accelerate the sale
98. Place regular weekly update calls to the seller to discuss marketing activity and results
99. Receive and review all Offers to Purchase submitted by buyers and buyers’ representatives
100. Evaluate offer and prepare a “net sheet” on each for owner comparison
101. Counsel owners on each offer – explaining merits and weaknesses of each
102. Contact buyer’s representative to discuss qualifications and motivations of their client
103. Fax/deliver Seller Property Information Statement (SPIS) to buyer’s representative or buyer prior to offer if possible
104. Confirm that buyer is qualified by Mortgage Officer
105. Obtain pre-qualification letter from Mortgage Officer
106. Negotiate all offers on seller’s behalf, setting condition time limits and closing date
107. Prepare and convey all counter offers, acceptance and/or amendments to buyer’s representative
108. Fax copies and mail originals of all documents to lawyer for the seller
109. When Offer to Purchase is settled and finalized by the seller, deliver to the buyer’s representative leaving a true copy with the owner
110. Deliver deposit to Trust Account as soon as practicable
111. Provide copy of the executed agreement to the office for filing in the deal file
112. Advise and counsel owner on the handling of offers while the original transaction is pending i.e. days to meet conditions in first offer and procedures
113. Update personal transaction program indicating sale pending
114. Assist buyer in applying for financing, if applicable
115. Arrange for appraiser to inspect the property and give any information including comparables, survey copy, etc.
116. If STB – get Credit Report of buyer for seller and review it with him/her
117. Order Septic Tank inspection, if applicable
118. Deliver water test results from Health Unit to mortgage company
119. Arrange other inspections as required by financial institution and/or insurance company i.e. mould, termite, WETT inspection, etc.

Mortgage Tracking

120. Contact lender regarding mortgage application progress
121. Prepare/obtain waiver or condition removal documents and deliver to lawyer for the seller

Home Inspection

122. Co-ordinate buyer’s professional home inspection
123. Review the inspection report
124. If repairs required, assist seller in obtaining trustworthy contractor to perform required repairs

The Appraisal

125. Schedule appraisal appointment
126. Provide appraiser with comparables used to set list price
127. Assist seller in questioning appraisal report if it seems too low

Closing Preparations and Duties

128. Work with buyer’s representative to arrange any visits prior to closing as agreed in the Agreement of Purchase and Sale
129. Arrange for trust deposit monies, if in excess of commission due, to be given to the lawyer for the seller
130. Be available for any concerns/questions from the seller
131. Advise real estate association that property is Sold and supply details as to price, date of sale, selling brokerage

Source: Ontario Real Estate Association (OREA)