Mortgage Agent and Broker
An Important Role of Seller Agent
By
Feb 22, 2006, 21:31

A listing broker is the broker the seller hires to represent him through the listing agreement. A selling broker is the broker who produces a buyer for the property. He divides the commission with the listing broker at settlement.

Discount brokers charge less than conventional brokers. The discounter appraises the property, lists and advertises it, shows pictures of it to prospects, and helps arrange financing. The homeowner does the showing.

Good brokers are vital to a quick sale. Their services include the following:

1. Knowing how to sell a property.

2. Knowing how to identify a potential buyer in contrast to a "looker."

3. Knowing how to price the seller's property in light of current market trends.

4. Producing a qualified buyer, generally within the time frame dictated by the seller.

The seller should provide the following information to the listing broker, in addition to the property and income specifications:

1. Pay-off notice. Notification by the seller to the lender of the seller's intention to pay off the mortgage. This notice should include the lender's address, loan balance, years remaining on present mortgage, and PITI.

2. Utilities. The seller should provide a record of the past year of gas, electric, sewer, water, and trash-removal bills.

3. Items to be conveyed. The seller should provide the listing broker with a specific list of personal property that is to be included in the real-estate

property for sale. These may include draperies, drapery rods, firewood, washer, dryer, refrigerator, stove, microwave, disposal, storm doors and windows, screens, shutters, antennas, and shrubs. The seller should tag or remove items not to be conveyed.

4. Miscellaneous. The property seller should also try to provide the broker with a schedule of rents and expenses, copy of leases, a termite inspection report, well and septic inspection report, records of property taxes and special assessments and easements, surveys, appraisal, subdivision plat map, floor plan, previous title search abstracts, legal description of the property, warranties, and insurance policies.

The listing broker is spreading the word that the property is available. The listing is generally promoted to two groups: the real-estate community and the buying public. About 60 percent of all buyers come from referrals between buyers and their network of contacts. About 20 percent of the sales come from advertising. The remaining 20 percent are stimulated by "For Sale" signs in yards. Thus, the most productive source of buyers is through other brokers. The multiple listing service (MLS) computer can make your property's description available to the entire MLS membership. Reciprocal agreements with memberships in other territories expand the potential audience even further. Signs in the yard, window, or on the building provide additional exposure. They often create high-quality inquiries because prospects like the location and have seen the property, rather than just a photograph. Some communities don't permit signs on residential property.