Orlando Real Estate

Why Choose a Realtor®?
When you're thinking about buying or selling your property, you need to ask yourself the following questions: Do you have the time, energy, sources
of information, and contacts to do the job yourself? If you are one of the 'do-it-yourself' people, would the results be as good or better than they would
be if you had professional assistance? Would it go smoother? Would it give you more personal time? Would you purchase for less, or sell for more, if
a Realtor were involved? Read the following information and learn how a real estate agent can help you understand everything you need to
know about a real estate transaction.

How Do Real Estate Agents Get Paid?
Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes. Agents have expenses
and financial obligations just like you, so it will be to your mutual benefit if you choose a Realtor and stick with that person. The agent will respect
your loyalty and respond with a sincere commitment to you.

Why A Realtor®?
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are
properly called Realtors®. They proudly display the Realtor® logo on business cards or other marketing and sales literature.

Realtors® are committed to treat all parties to a transaction honestly. Realtors® subscribe to a strict code of ethics and are expected to maintain a
higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the
same Realtor® again.

You Be the Judge!
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed
$100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question,
would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a
deal in real estate without the professional assistance of a REALTOR®!


Buying
The process of buying a home or investment generally starts with determining your buying power; that is, your financial reserves, plus your borrowing capacity. If you give a real estate agent some basic information about your available savings, income and current debt, they can refer you to lenders
best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

Finding
Once you know how much you can and want to invest, the next step is to find the properties that most nearly fit your needs. This is the time to choose
a real estate licensee. When picking a real estate agent look for one who is also a Realtor®. A Realtor® is a member of the NATIONAL ASSOCIATION
OF REALTORS®, and all members agree to abide by a 17-article Code of Ethics. A Realtor® has many resources to assist you in that search. Sometimes
the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

Selecting
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent can assist you
in the selection process by providing objective information about each property. Agents who are Realtors® have access to a variety of informational resources. Realtors® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment you want for a home or investment? Second, will the property have resale value when you are ready to sell?

Negotiating
There are a myriad of negotiating factors including, but not limited to price, financing, terms, date of possession, and often the inclusion or exclusion
of repairs and furnishings or equipment. The purchase agreement should also provide a period of time for you to complete appropriate inspections and
investigations of the property before you are bound to complete the purchase.

Your agent can advise you as to which investigations and inspections are recommended or required.

Due Diligence
With a negotiated agreement in hand, it is time to complete the evaluation of the property.

Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well
tests, just to name a few. Your agent can assist you in finding qualified, responsible professionals to do most of these investigations and provide you
with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired
in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights)
for utilities. Your agent, title company, or attorney can help you resolve issues that might cause problems at a later date.

Financing
As soon as you are reasonably sure the property is right for you, the process of obtaining financing begins. Your agent can help you in understanding
different financing options and in identifying qualified lenders.

Closing or Settlement
Finally, there is the closing, or settlement, as it is known in different parts of the country. Every area has its own unique customs. In some areas, the
title or escrow company will handle this process. In other parts of the country, an attorney does it all. Again, your real estate agent can guide you
through this process and make sure everything flows together smoothly.


Selling
This process generally begins with a determination of a reasonable asking price. Your Realtor can give you up-to-date information on what is happening
in the marketplace and the price, financing, terms, and condition of competing properties. These are key factors in getting your property sold at the best
price quickly and with minimum hassle.

Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the
property. Marketing includes the exposure of your property to other real estate agents and the public. In many markets across the country, over 50% of
real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The Realtor® Code of Ethics requires Realtors® to utilize these cooperative relationships when they benefit their clients.

Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in
some areas, newspaper advertising generates phone calls to the real estate office but statistically has minimum effectiveness in selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller is desperate. Your real estate agent will know when, where, and how to advertise your property.

There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends and family, and personal contacts.

Security
When the property is marketed with the Realtor's help, you do not have to allow strangers into your home. Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating
The negotiation process deals with much the same issues for both buyers and sellers as noted above under the buying process. Your agent can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections, and financing -- a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely
to make it through the process.

Monitoring, Renegotiating and Closing
Between the initial sales agreement and closing questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the
title is discovered.

The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing.
 

The REALTOR®’s Critical Role in the Real Estate Transaction

Why Was This List Prepared?

Surveys show that many homeowners and homebuyers are not aware of the true value they receive in the services a REALTOR® provides during
the course of a real estate transaction.

At the same time, regrettably, 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 most important services and steps are performed “behind the scenes” by either the REALTOR® or the brokerage staff and have been traditionally viewed simply as part of their professional responsibilities to their client. But, without them, the transaction could be placed in jeopardy.

This publication seeks to close that gap.

Listed on the following pages are nearly 200 typical actions, research steps, processes and review stages necessary for a successful residential real estate transaction and normally provided by a full service real estate brokerage and for which they are entitled to fair compensation.

Completeness of the List
The list is by no means an attempt to set forth a complete list of services as these may vary within each brokerage and each market. Many REALTORS® routinely provide a wide variety of additional services that are as varied as the nature of each transaction.

By the same token, some transactions may not require some of the steps to be successful. However, most would agree that given the unexpected complications that can arise, it’s far better to know about a step and make an intelligent, informed decision that it is not needed, than to not know the possibility even existed.

The REALTOR® Commitment
Through it all, the REALTOR®’S personal and professional commitment is to ensure that a seller and buyer are brought together in an agreement that provides each of them a “win” that is fair and equitable.

Their motivation is easy to understand. For most full-service brokerages, there is no compensation unless and until the sale closes.

By contrast, there are firms that offer “limited-services” in exchange for either an upfront flat fee or perhaps offer a menu of pay-as-you-go or “a la’ carte” services. Some even offer a sliding scale from limited to full service. In these cases, the REALTOR®’S compensation is based on the level of service they provide. In short, it’s the age-old market adage that “you get what you pay for.”

A Variety of Choices
It can truly be said the variety of brokerage business models in today’s real estate industry affords the homeowner a greater range of options than ever before.

But no matter which option homeowners choose, before signing a Listing Agreement or otherwise engaging the services of a REALTOR® and agreeing to compensate them, they should understand exactly what specific services will, or will not, be provided.

Why Use A REALTOR®?
First, not every real estate agent or broker is a REALTOR®. That term and the familiar Block “R” logo are trademarked by the National Association of REALTORS® and can only be used by those who are REALTOR® members through their local association of REALTORS®.

While all REALTORS® are state-issued licenses as agents or brokers, the major difference between a “real estate licensee” and a REALTOR® is that REALTORS® have taken an oath to subscribe to a stringent, enforceable Code of Ethics with Standards of Practice that promote the fair, ethical and honest treatment of all parties in a transaction. Non-member licensees have taken no such oath and are not morally bound to the ethical practices and principles set for in the REALTOR® Code.

Listed here are the nearly 200 typical actions, research steps, procedures, processes and review stages in a successful residential real estate transaction that are normally provided by full service real estate brokerages in return for their sales commission. Depending on the transaction, some may take minutes, hours, or even days to complete, while some may not be needed.

More importantly, they reflect the level of skill, knowledge and attention to detail required in today’s real estate transaction, underscoring the importance of having help and guidance from someone who fully understands the process – a REALTOR®.

And never forget that REALTORS® are pledged to uphold the stringent, enforceable tenets of the REALTOR® Code of Ethics in their professional dealings with the public. Not every real estate licensee holds REALTOR® membership. Make sure yours does!

Pre-Listing Activities

1 Make appointment with seller for listing presentation

2 Send seller a written or e-mail confirmation of listing appointment and call to confirm

3 Review pre-appointment questions

4 Research all comparable currently listed properties

5 Research sales activity for past 18 months from MLS and public records databases

6 Research "Average Days on Market" for this property of this type, price range and location

7 Download and review property tax roll information

8 Prepare "Comparable Market Analysis" (CMA) to establish fair market value

9 Obtain copy of subdivision plat/complex lay-out

10 Research property's ownership & deed type

11 Research property's public record information for lot size & dimensions

12 Research and verify legal description

13 Research property's land use coding and deed restrictions

14 Research property's current use and zoning

15 Verify legal names of owner(s) in county's public property records

16 Prepare listing presentation package with above materials and HomeTrack™ information

17 Perform exterior "Curb Appeal Assessment" of subject property

18 Compile and assemble formal file on property

19 Confirm current public schools and explain impact of schools on market value

20 Review listing appointment checklist to ensure all steps and actions have been completed

Listing Appointment Presentation

21 Give seller an overview of current market conditions and projections

22 Review agent's and company's credentials and accomplishments in the market

23 Present company's profile and position or "niche" in the marketplace

24 Present CMA Results To Seller, including Comparables, Solds, Current Listings & Expireds

25 Offer pricing strategy based on professional judgment and interpretation of current market conditions

26 Discuss Goals With Seller To Market Effectively

27 Explain market power and benefits of Multiple Listing Service

28 Explain market power of HomeTrack™, IDX and REALTOR.com

29 Explain the work the brokerage and agent do "behind the scenes" and agent's availability on weekends

30 Explain agent's role in taking all calls to screen for qualified buyers and protect seller from curiosity seekers

31 Present and discuss strategic master marketing plan

32 Explain different agency relationships and determine seller's preference

33 Review and explain all clauses in Listing Contract & Addendum and obtain seller's signature

Once Property is Under Listing Agreement

34 Review current title information

35 Measure overall and heated square footage

36 Measure interior room sizes

37 Confirm lot size via owner's copy of certified survey, if available

38 Note any and all unrecorded property lines, agreements, easements

39 Obtain house plans, if applicable and available

40 Review house plans and make copy

41 Order plat map for retention in property's listing file

42 Prepare showing instructions for buyers' agents and agree on showing time window with seller

43 Obtain current mortgage loan(s) information: companies and & loan account numbers

44 Verify current loan information with lender(s)

45 Check assumability of loan(s) and any special requirements

46 Discuss possible buyer financing alternatives and options with seller

47 Review current appraisal, if available

48 Identify Home Owner Association manager, if applicable

49 Verify Home Owner Association Fees with manager - mandatory or optional and current annual fee

50 Order copy of Homeowner Association bylaws, if applicable

51 Research electricity availability and supplier's name and phone number

52 Calculate average utility usage from last 12 months of bills

53 Research and verify city sewer/septic tank system

54 Water System: Calculate average water fees or rates from last 12 months of bills