Wisconsin REALTORS® Association

REALTOR® Sales Tip: Checklists for Success


 Marcus Wally  |    December 01, 2010
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We are responsible for so many details every day that I can’t imagine facilitating a transaction from contract to closing without a checklist. Using a checklist to stay organized is one of the best practices I know of. This article will walk you through some ways to successfully create and use checklists in your office.

Why is a checklist helpful? 

The checklist’s primary purpose is to help keep track of critical dates and time periods in a real estate transaction. Abundant liability exists for all real estate professionals and anything that we can do to limit risk is a good thing. As a broker-owner, risk reduction is a top priority for me!

A checklist can be developed for both a buyer and a seller. I have one for each type of transaction, as my buyer checklist has certain features that are not appropriate for my seller checklist. Always start with a general checklist, then add specifics that apply to your individual company policies and procedures.

My team and I have a file folder for every transaction, labeled with the property address. We keep these listings and selling file folders alphabetized in our large file cabinet and accessible to all team members. These files traditionally stay in the office and are not to be removed. Our administrative staff has full access so that they can help and support the agents at any time.

How do you get started? 

For each listing we take, a file folder is created and for each buyer that a member of the team works with, a file folder is created for them specifically.

We choose to staple the appropriate checklist to the inside front cover of the file folder so that at a fast glance, anyone picking up the file folder can help answer any question relating to the transaction.

The listing packet checklist requires the owner of the property and the property address to be written in at the very top of the checklist form.

What steps should be included in a checklist? 

Moving from top to bottom, twenty lines guide the agent from first point of contact with the seller to the completion of the property listing and entry into our local MLS database. There is a small line to the very right of each task that allows the agent to place his or her initials in the blank space after completing a requirement. Toward the end of a transaction, our administrative staff carefully checks that all listing tasks are completed and the proper paperwork is in the listing file folder along with all parties’ initials/signatures.

  • The first requirement is to ensure that the proper disclosures have been given in writing and are returned signed and dated.
  • The seller’s estimated closing costs sheet should be completed and signed by all owners on the deed.
  • The Exclusive Right to Sell Listing agreement must be signed, dated by the seller, listing agent and broker of the office.
  • Has the seller’s property disclosure (property condition report) been filled out, signed/dated by seller and returned to the office?
  • Was the home warranty/home protection plan signed, accepted or waived and a copy placed in the file?
  • Was the MLS computer data sheet completed?
  • Were advertisements written?
  • Have digital photos been taken?
  • Is a virtual tour ordered?
  • Are the showing instructions written on the inside of the listing file folder?
  • Are all the important phone numbers and email addresses in the file folder?
  • Are the keys logged in?
  • Is the sign on the property? Does a special community sign need to be ordered?
  • Is the property to be on the MLS caravan and also the listing company’s own in-house caravan?
  • Is a MLS number assigned?
  • What is the name of builder? (call the county office building department)
  • Has the correct zoning been verified with the zoning department?
  • Have the current taxes been verified?
  • Have the current school districts been verified?

What information should you collect from the seller? 

At the bottom of this checklist is a section I call “Collect from the Seller.” In this section, I include:

  • A copy of the warranty deed (this document shows true ownership)
  • The current insurance company name/phone number/policy number
  • The previous title policy as a re-issue credit may be available to my sellers
  • A copy of the owner’s survey (this will accurately show me the boundary lines of the property) 
  • Is the property in a flood zone? If so, get a copy of the elevation certificate.
  • Do my owners have a current termite bond in place?
  • The loan number and mortgage company’s phone number — is there a prepayment penalty?
  • And then I always get my seller’s birthday and anniversary dates.
  • The last few lines are left blank for me to take notes.

What about a closing checklist? 

My closing checklist is similar. At the very top of the form, I detail both the seller’s and buyer’s information: names, address, phone numbers, email addresses. Then I include:

  • The type of transaction is checked (cash, conventional, FHA, VA, Owner financing)
  • The list of tasks to be completed from the moment we go under contract (have an accepted offer) with a small line where the date of each completed item is noted.
  • My checklist starts with the contract and all addenda being signed by all parties and placed in the file.
  • A second binder includes the deposit due and the date when it was received. These are two important items to track. There is a big liability here if I miss collecting a good faith escrow binder that the contract states will be placed in escrow.
  • The next item on my checklist is the verification that the bank application has been made (if appropriate) and with which lender.
  • Dates are to be filled in as to when the home inspection/termite report (WDO) is ordered and with whom?
  • Has the seller’s property condition report been shared with the buyers and a copy of the buyers’ signatures saying they received the same.
  • Appraisal and survey ordered (if applicable) with which company and confirm costs for each.
  • Has the contract for sale and purchase and all addendums been sent to the lender?
  • Insurance (home owners and flood) ordered with whom?  Verify costs?
  • The date the loan approval is granted
  • The date the title binder (commitment) has been received and the date this is passed on to buyers
  • If an in-house listing, has the sale pending rider been placed on the sign and the states in the MLS changed to pending?
  • Has the closing date been shared with all parties? Is a walk-through scheduled?
  • Request binder check and collect all keys to take to closing
  • Attend closing — has the home warranty application been signed by all parties (buyers and sellers) and the application given to the title agent to mail to the company.
  • To bring back to the office: settlement statement (HUD 1) signed by all parties, commission check, copy of survey and termite report, etc.). Note: Take extra care to verify that the commission check you are given is the correct amount and made payable to the correct real estate agency. Many times the closing company will mix up the checks and you could leave the building with the cooperating agency’s check.

The last few things on my check list are to verify that the sign and lock box have been removed from the property if it is an in-house listing.

Remember to get the buyer’s birthday and anniversary dates for follow up and future referrals!

At the very bottom of my closing checklist, I include the date and initials of the agent completing each step. Always include a company name and contact person’s name and phone number while completing the closing process. Remember to document all phone calls/conversations and record the price quotes given at the time orders are placed along with the name of the person you have spoken with.

Then, on the back side of this sheet we have blank lines so my team can take careful notes at each point in the process. My legal counsel always reminds me of the importance of documenting everything so that, should the occasion arise, I am not going off my memory but have documented notes.

In today’s litigious world, we as top-notch professionals must take great care in all we do. Having a buyer and seller checklist is one way to ensure that we provide our customers with excellent service while earning potential referrals later on.

Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Fla. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at  904-669-1081 or by email at marcuswally@comcast.net .

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