Many people believe that brokers make a ton of money just by sitting back and collecting a commission. There is MUCH more that goes into selling a home than just listing it watching a check come in!
First a Broker needs to get all the details on the home. This process includes alot of research and market knowledge.
- Research tax records to verify ownership of the house
- Research sales activity for homes in the past 6-12 months
- Research on properties currently under contract
- Research on all the homes that did NOT sell (And determine why)
- Research competitive homes that are currently on the market
- Analyze data on the current market situation of the area
- Prepare a Comparative Market Analysis
- Determine an accurate price range the house could sell for
- Call Receiver of taxes to verify real estate taxes
Once the research is out of the way, and the broker is armed with the proper knowledge, the real leg work begins! The broker is ready to start meeting with the homeowner to:
- Do a walk through house
- Make recommendations to increase the potential home value
- Discuss the marketing plan and strategy
- Discuss fiduciary responsibility
- Discuss importance of pricing correctly
- Answer all of the homeowners questions about the entire process
- Explain all of the documents and contracts involved
- Make recommendations to sell your home faster
Once a broker and a homeowner agree on a price and commission, next comes the implementation. A broker will start by discussing the difference between a broker open house and a public open house before moving on to the tedious administrative work involved with selling a home. A broker will:
- Have professional pictures taken of the interior and exterior
- Hand select the perfect photos for MLS
- Explain showing instructions
- Give homeowner showing tips
- Get signatures on all documents
- Proof read the listing agreement
- Submit the listing to front desk
- Order a custom sign for that particular home
- Write an ad designed to draw traffic to the home
- Review the listing immediately after it is submitted to the MLS
- Explain showing instructions to front desk
- Enhance listing on Realtor.com
- Prepare Mail out Postcards to announce the homes Just Listed! status
- Set up e-flyer and email to 19,000 agents
- Add to my personal website as featured listing
- Prepare file for listing
- Prepare a highlight sheet
- Write ad for marketing
- Send homeowner copy of ad
- Contact agents to promote listing
- Call homeowner with all showing inquiries
- Confirm showing appointment with agent
- Email agent and request feedback after showing
- Call agent for feedback if they don’t respond to email
- Call homeowner to give feedback
- Setup a Broker open house
- Submit open house info to MLS
- Order food for open house
- •Set up signs in neighborhood pointing to open house
- Showcase home to agents and get agents recommendations
- Discuss agent feedback with homeowner
- Discuss price reduction if necessary
- Speak with all buyers who inquire on home
- Pre-qualify buyer if they want to see home
- Show house if buyer is qualified
- Discuss options with homeowner if no offers
- Update CMA with current data and email to homeowner
- Set up a public open house
- Market public open house
- Set up signs in neighborhood
- Fine tune price if necessary
- Explain to homeowner that when priced correctly – offers will come
- When offers come – get them in writing
- Get pre-approval in writing
- Speak with buyers mortgage representative
- Present offer to homeowner
- Negotiate to bring a meeting of the minds
- Modify binders to agreed price
- Get names of attorneys
- Fax/email binder to attorneys
- Set up home inspection
- Classify as 1st accepted-still showing with front desk
- Selling agent accompanies home inspector with buyer
- Explain to buyer that home inspectors job is to find faults with home
- Explain inspection report is not to be used to re-negotiate
- Discuss results of home inspection with homeowner
- Get lead based paint disclosure signed by buyers
- If home passes inspection, ask sellers attorney to send out contracts
- Follow up with buyers to see when signing contracts
- Try to get the buyers in to contract with in 10 days
- Call homeowner to alert when buyer signs contract
- Ask homeowner to call their attorney to sign contracts
- Sellers attorney will send contract back to buyers attorney
- Have buyers submit fully executed contract to mortgage rep
- Submit paper work to front desk
- Change status from 1st accepted to in contract
- Assist buyer with obtaining financing
- Schedule a termite inspection
- Contact lender weekly to ensure processing is on track
- Schedule appointment for appraiser
- Bring comps to appraisal appointment
- Follow-up on appraisal
- Call processor to see if file is ready for underwriting
- Once approved, get buyer to sign commitment
- Follow-up on scheduling of closing
- Ask homeowner to call utility companies
- Once closing is scheduled, set up final walk through
- Attend closing
Note: If A Home Does Not Sell…The Broker Does Not Earn A Commission
Click Here to Download: Brokers-Commission-Breakdown.pdf