FAQ's

                 What does a Realtor do for the Buyer and Seller?:

There is a lot of talk in the news about real estate agent commissions. There is almost always a huge misconception on what they do and how they get paid. It's not a secret so here ya go...😊

The average FULL TIME Realtor's earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR they do not get paid a hourly wage or salary and they only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent, you could work with someone days, weeks, months, or years with no guarantee of a sale ever.

Essentially, they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use their time, gas, pay for babysitters, miss dinner and weekends, and rarely take vacations. They are on 24/7! You constantly need to be on, or you could miss an opportunity. Once they do close a home, half goes to the other person's agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid:

Broker Splits and Fees

Office rent and utilities

MLS Fees

NAR Fees

Local Association Fees

E&O Business Insurance

Extended Auto Insurance

Self-Employment Tax

State Licensing Fees

Advertising Fees

Showing Service Fees

Website Fees

Assistant's Salaries

Showing partners

Transaction coordinator

Yard Signs

Photographers

Videographers

Office Supplies

Business Cards

Property Flyers

Electronic Lockboxes

Continued RE Education

Legal Fees

Gas

Income taxes are not taken out so they have to put that aside around 25-30%.

Don’t forget health insurance if you don’t have a spouse who provides it.

As a Listing agent they have lots of tasks far more than just selling a home:

1. Prepare Listing Presentation for Sellers

2. Research Sellers Property Tax Info

3. Research Comparable Sold Properties for Sellers

4. Determine Average Days on Market

5. Gather Info From Sellers About Their Home

6. Meet With Sellers at Their Home

7. Get To Know Their Home

8. Present Listing Presentation

9. Advise on Repairs and/or Upgrades

10. Provide Home Seller To-Do Checklist

11. Explain Current Market Conditions

12. Discuss Seller’s Goals

13. Share Your Value Proposition

14. Explain Benefits of Your Brokerage

15. Present Your Marketing Options

16. Explain Video Marketing Strategies

17. Demonstrate 3D Tour Marketing

18. Explain Buyer & Seller Agency Relationships

19. Describe the Buyer Pre-Screening Process

20. Create Internal File for Transaction

21. Get Listing Agreement & Disclosures Signed

22. Provide Sellers Disclosure Form to Sellers

23. Verify Interior Room Sizes

24. Obtain Current Mortgage Loan Info

25. Confirm Lot Size from County Tax Records

26. Investigate Any Unrecorded Property Easements

27. Establish Showing Instructions for Buyers

28. Agree on Showing Times with Sellers

29. Discuss Different Types of Buyer Financing

30. Explain Appraisal Process and Pitfalls

31. Verify Home Owners Association Fees

32. Obtain a Copy of HOA Bylaws

33. Gather Transferable Warranties

34. Determine Need for Lead-Based Paint Disclosure

35. Verify Security System Ownership

36. Discuss Video Recording Devices & Showings

37. Determine Property Inclusions & Exclusions

38. Agree on Repairs to Made Before Listing

39. Schedule Staging Consultation

40. Schedule House Cleaners

41. Install Electronic Lockbox & Yard Sign

42. Set-Up Photo/Video Shoot

43. Meet Photographer at Property

44. Prepare Home For Photographer

45. Schedule Drone & 3D Tour Shoot

46. Get Seller’s Approval of All Marketing Materials

47. Input Property Listing Into The MLS

48. Create Virtual Tour Page

49. Verify Listing Data on 3rd Party Websites

50. Have Listing Proofread

51. Create Property Flyer

52. Have Extra Keys Made for Lockbox

53. Set-Up Showing Services

54. Help Owners Coordinate Showings

55. Gather Feedback After Each Showing

56. Keep track of Showing Activity

57. Update MLS Listing as Needed

58. Schedule Weekly Update Calls with Seller

59. Prepare “Net Sheet” For All Offers

60. Present All Offers to Seller

61. Obtain Pre-Approval Letter from Buyer’s Agent

62. Examine & Verify Buyer’s Qualifications

63. Examine & Verify Buyer’s Lender

64. Negotiate All Offers

65. Once Under Contract, Send to Title Company

66. Check Buyer’s Agent Has Received Copies

67. Change Property Status in MLS

68. Deliver Copies of Contact/Addendum to Seller

69. Keep Track of Copies for Office File

70. Coordinate Inspections with Sellers

71. Explain Buyer’s Inspection Objections to Sellers

72. Determine Seller’s Inspection Resolution

73. Get All Repair Agreements in Writing

74. Refer Trustworthy Contractors to Sellers

75. Meet Appraiser at the Property

76. Negotiate Any Unsatisfactory Appraisals

77. Confirm Clear-to-Close

78. Coordinate Closing Times & Location

79. Verify Title Company Has All Docs

80. Remind Sellers to Transfer Utilities

81. Make Sure All Parties Are Notified of Closing Time

82. Resolve Any Title Issues Before Closing

83. Receive and Carefully Review Closing Docs

84. Review Closing Figures With Seller

85. Confirm Repairs Have Been Made

86. Resolve Any Last-Minute Issues

87. Attend Seller’s Closing

88. Pick Up Sign & Lock Box

89. Change Status in MLS to “Sold.”

90. Close Out Seller’s File With Brokerage

As a Buyer’s agent they also have many tasks:



1. Schedule Time To Meet Buyers

2. Prepare Buyers Guide & Presentation

3. Meet Buyers and Discuss Their Goals

4. Explain Buyer & Seller Agency Relationships

5. Discuss Different Types of Financing Options

6. Help Buyers Find a Mortgage Lender

7. Obtain Pre-Approval Letter from Their Lender

8. Explain What You Do For Buyers As A Realtor

9. Provide Overview of Current Market Conditions

10. Explain Your Company’s Value to Buyers

11. Discuss Earnest Money Deposits

12. Explain Home Inspection Process

13. Educate Buyers About Local Neighborhoods

14. Discuss Foreclosures & Short Sales

15. Gather Needs & Wants Of Their Next Home

16. Explain School Districts Effect on Home Values

17. Explain Recording Devices During Showings

18. Learn All Buyer Goals & Make A Plan

19. Create Internal File for Buyers Records

20. Send Buyers Homes Within Their Criteria

21. Start Showing Buyers Home That They Request

22. Schedule & Organize All Showings

23. Gather Showing Instructions for Each Listing

24. Send Showing Schedule to Buyers

25. Show Up Early and Prepare First Showing

26. Look For Possible Repair Issues While Showing

27. Gather Buyer Feedback After Each Showing

28. Update Buyers When New Homes Hit the Market

29. Share Knowledge & Insight About Homes

30. Guide Buyers Through Their Emotional Journey

31. Listen & Learn From Buyers At Each Showing

32. Keep Records of All Showings

33. Update Listing Agents with Buyer’s Feedback

34. Discuss Home Owner’s Associations

35. Estimate Expected Utility Usage Costs

36. Confirm Water Source and Status

37. Discuss Transferable Warranties

38. Explain Property Appraisal Process

39. Discuss Multiple Offer Situations

40. Create Practice Offer To Help Buyers Prepare

41. Provide Updated Housing Market Data to Buyers

42. Inform Buyers of Their Showing Activity Weekly

43. Update Buyers On Any Price Drops

44. Discuss MLS Data With Buyers At Showings

45. Find the Right Home for Buyers

46. Determine Property Inclusions & Exclusions

47. Prepare Sales Contract When Buyers are Ready

48. Educate Buyer’s On Sales Contract Options

49. Determine Need for Lead-Based Paint Disclosure

50. Explain Home Warranty Options

51. Update Buyer’s Pre-Approval Letter

52. Discuss Loan Objection Deadlines

53. Choose a Closing Date

54. Verify Listing Data Is Correct

55. Review Comps With Buyers To Determine Value

56. Prepare & Submit Buyer’s Offer to Listing Agent

57. Negotiate Buyers Offer With Listing Agent

58. Execute A Sales Contract & Disclosures

59. Once Under Contract, Send to Title Company

60. Coordinate Earnest Money Drop Off

61. Deliver Copies to Mortgage Lender

62. Obtain Copy of Sellers Disclosure for Buyers

63. Deliver Copies of Contract/Addendum to Buyers

64. Obtain A Copy of HOA Bylaws

65. Keep Track of Copies for Office File

66. Coordinate Inspections with Buyers

67. Meet Inspector At The Property

68. Review Home Inspection with Buyers

69. Negotiate Inspection Objections

70. Get All Agreed Upon Repair Items in Writing

71. Verify any Existing Lease Agreements

72. Check In With Lender To Verify Loan Status

73. Check on the Appraisal Date

74. Negotiate Any Unsatisfactory Appraisals

75. Coordinate Closing Times & Location

76. Make Sure All Documents Are Fully Signed

77. Verify Title Company Has Everything Needed

78. Remind Buyers to Schedule Utilities

79. Make Sure All Parties Are Notified of Closing Time

80. Solve Any Title Problems Before Closing

81. Receive and Review Closing Documents

82. Review Closing Figures With Buyers

83. Confirm Repairs Have Been Made By Sellers

84. Perform Final Walk-Through with Buyers

85. Resolve Any Last Minute Issues

86. Get CDA Signed By Brokerage

87. Attend Closing with Buyers

88. Provide Home Warranty Paperwork

89. Give Keys and Accessories to Buyers

90. Close Out Buyer’s File Brokerage

Whew…exhausting isn’t it!?! 🤯

✨You don't need to buy or sell a home to support your agents real estate business – here are just a few simple ways to show your support:

⁣ By sharing one of their listings, sending a friend or family member their way, letting them connect you with agents outside their area for a broker to broker referral, or leaving them a positive comment or review.

Just because you go directly to a builder does not mean you will get the best home and the best deal for you. The person at the new home site works for the builder. You should always have someone knowledgeable about the real estate industry on your side, working in your best interests.

BIGGEST MYTHS ABOUT BUYING NEW CONSTRUCTION:

MYTHS ABOUT BUILDERS:

• MYTH: The Builder will discount the price if I don’t have a REALTOR®: 

o FACT: In most cases, the agent is paid through the seller’s fees. With regards to new construction, the builder has already anticipated this cost. If you go to a builder without the guidance and assistance of a REALTOR®, you’re paying for realty services without reaping the benefits. Why would you put yourself at such a disadvantage? And although most think that a REALTOR® will cost them money, for a home buyer, these services are free if you use REALTOR® Jennifer Hughes.

MYTH: Buying directly from the builder will be hassle-free:

o FACT: There will be many things to consider when purchasing a new construction. As you walk into a model home everything may seem straight-forward. However, getting your home built most often will not be as clear. You’ll benefit from REALTOR® services: to decipher through builder’s jargon, contract language, and even help show you how your option choices can add value to your home. (Read on through “Myths About REALTORS®”)

MYTHS ABOUT REALTORS®: 

MYTH: REALTOR® services will not help me in purchasing a new home:

o FACT: The builder has to develop every parcel of land it owns in order to make a return on its investment. This may mean trying to sell you a lot that may not be suitable for your needs or one that’s difficult to resell. A REALTOR® walks the lot with you, goes through the house, and can recommend ideas to you that can help in making the decision on which lot and which house will be the best for your needs. A REALTOR® is the best sounding board you can have while going through the home-building process. The Realty Corner’s REALTOR® Brokers are trained and specialize in helping your through the entire home building process. We customize our services to fit your needs, from foundation to final walk-through.

MYTH: The sales agent at the model home works for me:

o FACT: Although they may be warm and friendly, the sales agent you meet when touring a model home works for the builder, not you. Their interest is in getting the most profit on the houses they sell. You need to have a REALTOR® who you know is working for you. Your REALTOR® will have your interests at heart when helping your make decisions on your new home purchase. And REALTOR® services from Jennifer Hughes are free to you, the buyer.

MYTH: Any Real Estate Agent can assist me:

o FACT: 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®. 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.

MYTHS ABOUT BUYING:

MYTH: This is the price of the home as I see it:

o FACT: Not always. Many model homes have upgrades. These upgrades, or options, (such as hardwood floors or granite counter tops) are attractive to most buyers. However, many prices advertised don’t include the options you see in a model home. If you’ve fallen in love with the ceramic tile in the foyer, make sure to find out if the tile is included in the total price or how much extra it will be to upgrade. A REALTOR® can help you choose the options that you want and that add to your home’s value.

MYTH: I can do it myself. I don’t need assistance:

o FACT: 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®.

(source: National Association of REALTORS)

Can an  REA represent you when having a house built?

 THE ANSWER IS YES! 

• The salesperson      at the model represents the builder. The sales person is very knowledgeable with their lot inventory, home choices, and the  Builder. 
• If you tell them that you will want representation by a  Realtor they should respect your choice and agree to allow you to be represented. This should not prevent them from providing you with the information. 
• This should not add to the cost of your home purchase, they should have a buyer representative fee already built in. In fact they want Realtors to bring buyers to their projects. 
• 
  

I WILL REPRESENT YOU: 

• Our experience will help you with lot selection. There is nothing more disappointing then to have a lot that does not meet your life style. In most situation developers, not builders, control lots. We will research all lot options in a development or area. 
• Our experience will help you with design ideas. We will be with you in the design      process. We have been involved with many new construction homes and have gathered many ideas that you might use in your new home. 
• Our experience  will save you money. It is very easy to get emotionally involved with the process and not use good judgment with choices. We will be there to help keep you on track with your budget. 
• We will be there throughout the process. There are steps along the way where our      experience will help you, such as: red lining the plans, change options during construction, issues with builder or builder representatives, final inspection and the closing. 

I want to be your REALTOR Consultant to help make the new home building process an enjoyable experience for you.