PREMIER SERVICE COMMITMENT DETAILS FOR SELLERS

(as of May 20, 2005)

Premier Service Seller Commitment Point #1:
As your representative, I will present agency disclosure explaining the different relationships between agents and consumers. 

Activities / Details:

1. Describe the role of a buyer's agent and how sellers are impacted through this representation.
2. Provide written summary of possible agency relationships in marketplace.
3. Compare and contrast these relationships to those available the last time the seller was active in the marketplace.
4. Identify the sellers - understanding of prior agency relationships whether as a buyer or seller.
5. Provide state mandated forms and documents related to agency relationships.
6. Provide supplemental visuals, handouts and materials to more thoroughly explain agency relationships.
7. Identify and share vulnerabilities of improper actions by real estate licensees.
8. Clarify the role of the seller's agent, listing agent, and that of the agent's broker.
9. Identify the role of the other agents within the office of the listing agent.
10. Explain the role and procedures of the Multilist and "pre-sell" the property by previewing it to the real estate community. 
11. Advise sellers to be prudent in guarding confidential information and caution them to secure your advice on such issues.
12. Advise sellers as to the proper procedures when dealing directly with other agents, buyer prospects and the public at large with regard to the marketing of their property.
13. Present, review and thoroughly explain the "listing agreement" and its provisions.
14. Provide ample opportunity to ask questions, seek advice and discuss the ramifications, requirements and obligations of the listing agreement.
15. Schedule follow-up appointments to review agency procedures and reflect on actions by participants involved in marketing, showing and negotiating. 

Premier Service Seller Commitment Point #2:
As your representative, I will deliver a Competitive or Comparative Market Analysis to assist in developing a pricing strategy. 

Activities / Details:

1. Provide two to three scenarios of sale prices and associated costs in anticipation of future events and to better demonstrate the impact of sale price on costs (refer to listing presentation pages).
2. Prepare and present a SAMPLE market analysis to enable sellers to better understand the form and function of this tool.
3. Review of the appraiser's comparative market approach to value.
4. Assess the pros and cons of securing a formal appraisal.
5. Discuss the dangers of relying on well meaning, but uninformed value opinions.
6. Provide a comprehensive review of the "Pricing Your Home to Sell" video to emphasize the following:  
7. Do have a price range in mind before you go to the listing.  Agents should have a sense of where the listing should be priced to guide the sellers.
8. Use of comparables to aid in determination of price.  In a "hot" market, comps alone may not indicate pricing point.     
9. Seller's urgency.  If they must move in 30 days because of a job transfer, obtaining the highest price may not be the top priority. A lower price may help move the house more quickly.
10. Weighing the home's condition.  If floors are scuffed and the place is cluttered, a stale, worn look may negatively affect pricing and the ability to sell. 
11. Use of MLS illustrations.  Using current MLS data, illustrate the effect of pricing and time to sell.  (Overpriced listings that linger on the market may eventually sell, but potentially for less than their worth.)   
12. Determining price reductions.  If the property is overpriced, you'll know within a couple weeks. Sellers and Agent should discuss and establish a strategy to review pricing after a set period "two weeks or so" if the listing isn't generating traffic and offers. 
13. Know when to walk.  Agents may choose not to work with sellers that insist on pricing the home too high. . 
14. Outline negotiating strategies that emphasize pricing's impact on attracting a major segment of the market.
15. Provide current Market Data and a comprehensive review of competing properties, recently sold properties, and expired listing properties.
16. Share lessons learned from "ask" and "offered" prices.
17. Convert market data into a range of market value (pricing pyramid).
18. Discuss the concept of 3-tier pricing (aspired, acceptable, walk away) and pricing's impact on marketing efforts as well as the impact of the "market" on pricing.
19. Assist the seller in selecting the initial list price.
20. Provide a regular market analysis updates.

Premier Service Seller Commitment Point #3:
As your representative, I will create and present a detailed, written marketing plan including specific strategies, programs and buyer targets.  

Activities / Details:

1. Identify the seller's experience and expectation for property marketing.
2. Target sources of local and out-of-town buyer prospects.
3. Identify typical actions of a buyer entering the home buying market.
4. Prepare a comprehensive and customized marketing plan for seller review and approval.
5. Supplement the provisions of the marketing plan with samples, handouts and examples to fully explain the nature and extent of each marketing provision.  Include a section relating to:
6. Identification of the applicable buyer pool.
7. Proper promotion of the property to that buyer pool.
8. Attracting attention to the positive aspects of the property.
9. Mobilizing the real estate community.
10. Expanding or upgrading the promotional opportunities for the property.
11. Tapping technology to expand and capture promotional opportunities.
12. Fully discuss the advertising and open house campaign to attract qualified buyers.
13. Concentrate on marketing activities that have been proven effective in securing buyers for other properties in the area.
14. Identify the general characteristics (profile) of a likely buyer.
15. Apply promotional techniques targeted to reach likely buyers.
16. Share the techniques used to maximize the neighbor's curiosity and interest in the property and its price to generate qualified buyer prospects (ex.  Open Houses, Just Listed, Virtual Tours, Internet).
17. Share the use of Broker Opens / Broker Caravans to specifically highlight the attributes of the property to targeted buyer profiles.
18. Share the technique of tapping specific agents and associates who interact with buyers in a given area or profile.
19. Prepare a sample property brochure or flyer for seller approval.
20. Discuss the concept of "reserving buyers" and your company policy on it.  
21. Ask sellers to share their reasons, expectations, anxieties and timetable regarding the sale.
22. Identify special needs that need to be serviced during the marketing and sale of the property.
23. Share with sellers a written list of questions that they would be advised to answer to better inform their agent of their status and priorities.
24. Stress the importance of assembling all relevant data on the property, including current title holders and financing status.
25. Compare and contrast the information and advice already secured with the realities of today's marketplace.
26. Warn of the risks of taking advice from "well meaning" but potentially "less informed" advisors / friends.
27. Emphasize the importance of a successful team relationship between property owners and their agents. 

Premier Service Seller Commitment Point #4:
As your representative, I will recommend property merchandising and enhancements to maximize marketability.  

Activities / Details:

1. Conduct preliminary "showing" of the property to the sellers, enabling sellers to see their property through the "eyes" of buyers.
2. Review aspects of a comprehensive personal property inspection.
3. Identify and itemize marketable property features and detracting property features.
4. Discuss market value of enhancements and itemize "property improvements" made by sellers.
5. Present the importance of staging property and staging priorities for real estate agents and prospective buyers.
6. Target market to key agents and associates in the local market.
7. Review the GMAC Real Estate Home Merchandising System (via video).
8. Establish a strategy for the final staging of a property for viewing.
9. Visual priority #1: curb appeal Do's and Don'ts.
10. Visual priority #2: clutter free Do's and Don'ts.
11. Visual priority #3: color scheme Do's and Don'ts.
12. Visual priority #4: deferred maintenance Do's and Don'ts.
13. Visual priority #5: clean, clear and sanitized Do's and Don'ts. 
14. Scent priority:  The sweet smell of success Do's and Don'ts.
15. Priority "punch list" of improvements/modifications.
16. Discuss the various viewing situations and feedback from:  open houses, agents bringing buyers, agents coming unaccompanied, short and long notice, etc.
17. Discuss Home Warranty options and benefits.
18. Assess special challenges:  pets, children, storage, kitchens, baths, and garages.

Premier Service Seller Commitment Point #5:
As your representative, I will provide a written estimate of seller expenses and proceeds.  

Activities / Details:

1. Determine the seller's prior experience in selling property.
2. Share a rough time table of events following the signing of an Offer to Purchase.
3. Present a checklist of possible closing and settlement cost items associated with the sale and settlement of their property.  With each "cost item", explain the reason for that item, the projected amount, who it is paid to, what might cause it to change, ways it can be minimized (if any), the date it is due, the tax ramifications of these costs, etc.
4. Provide two to three scenarios of sale prices and associated costs in anticipation of future events and better show the impact of sale price on costs (refer to listing presentation pages).
5. Provide a written ESTIMATE of cost/return for the seller focusing on the list price amount, with appropriate disclaimers.

Premier Service Seller Commitment Point #6:
As your representative, I will discuss your property disclosure statements and deliver it to each prospective buyer.  

Activities / Details:

1. Present the state seller disclosure laws and their rationale.
2. Review the scope and content of required disclosures / forms and the seller's role and candor in completing them.
3. Outline the agent's role and limitations in securing seller disclosures; communicating and distributing seller disclosures.
4. Discuss documentation and records supporting disclosure requirements.
5. Explain the role of Home Inspectors as hired by the buyer to review the property before purchase.

Premier Service Seller Commitment Point #7:
As your representative, I will commit to regular communication including prospect and market feedback.  

Activities / Details:

1. Compose a targeted plan of communication that includes method, frequency, events, difficulties, response time, parties to be included, follow-ups in writing, discussions with other agents, information from sellers to agent, and back up plans in the event either party is temporarily unavailable.  List the modes of communication that would be acceptable between the sellers and their agent, i.e., mail, voice mail, fax, e-mail, phone conversation, personal visit, other.
2. Invite sellers to share the "communication system" that was employed between them and their agent in any previous transaction.  Specifically, ask them to share what worked and what could have been improved.
3. Include a "plan of adjustment" wherein the plan of communication can be modified, by either party, if it becomes apparent that gaps and voids are being experienced and dissatisfaction results.
4. Based on their current situation and understanding, discuss what level of communication they expect from their agent during the marketing and sale of their property.
5. Clarify anticipated events (showings, open houses, offers, etc.) that would necessitate specific communication and scheduling.
6. Emphasize the fact and importance of the transaction partnership which includes seller, agent, and management.  Advise sellers that a supervising party (manager, broker, etc.) can be contacted with any concerns.  Ensure that sellers have contact information (name, phone number, e-mail). 
7. Discuss the relative "purchasing power" of buyers in the marketplace.  Identify traits that would be acceptable and those that would require more investigation and analysis.  Share the importance of "due diligence" procedures when analyzing buyers and their offers.  Research, not only the data, but also the sources of that data.
8. Discuss the range of contingencies that purchasers might include in a purchase offer and outline the impact of various contingencies. 
9. Caution sellers against overly positive or overly negative impressions of an offer based on limited information and exposure. 

Premier Service Seller Commitment Point #8:
As your representative, I will promote the property through advertising, direct marketing, industry networking, and the Internet.  

Activities / Details:

1. Implement the prepared and customized Marketing Plan (referenced in Point #3, Item #4) that encompasses a variety of exposure channels such as:
2. Virtual Tours
3. Print (ex. Brochures, Direct Mail, Newspapers)
4. Open Houses
5. Internet (ex.  Realtor.com and E-mail campaigns)
6. Provide regular communication and updates on marketing efforts throughout the term and provide strategy adjustments, as needed.

Premier Service Seller Commitment Point #9:
As your representative, I will provide counsel and negotiating assistance on all Offers to Purchase.  

Activities / Details:

Premier Service Seller Commitment Point #10:
As your representative, I will share financial information with you as provided by the buyer, and make every effort to have each buyer pre-qualified or pre-approved with a lender.    

Activities / Details:

1. Discuss "pre-qualified" vs. "pre-approved" and the relative impact of each upon a successful closing.
2. Compare and contrast Pre-approved mortgages vs. cash. Are they the same?
3. Outline the types of financing and possible seller contribution.
4. Define and explain "bridge loans".
5. Provide information on the appraisal process.

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Premier Service Seller Commitment Point #11:
As your representative, I will assist you in monitoring the status and satisfaction of contract contingencies.      

Activities / Details:

1. Review a sample sales contract/agreement of sale.  Specifically highlight the more critical sections, portions or paragraphs in anticipation of what might be submitted for consideration. 
2. Explore seller's current or past experiences on specific contract provisions.   
3. Present options and counter-offer positions to specific contingencies.   
4. Emphasize the fact that NO PRESSURE will be applied to accept or reject any contract provision.  Add, however, that in many cases a strong recommendation will be provided.
5. Extract from an accepted contract of sale the specific provisions that will impact and influence the progression toward final settlement.
6. Establish a specific schedule of dates and events to monitor the progress of contingency activity and removal.  Within this schedule, insure communication with sellers, selling agent, and service providers.
7. Act promptly and decisively to problems and concerns that result from contingency removal activity.  
8. As contingencies are removed or attended to, keep the seller informed and provide targeted or scheduled closing date, location and time.

Premier Service Seller Commitment Point #12:
As your representative, I will offer home purchase assistance, referral services, and access to community and property information.         

Activities / Details: 

Identify the seller's new home destination and coordinate with service parties on that end (leasing agent, sales agent, builder, etc.)

Provide referral and relocation services through GMAC Real Estate network, as applicable.

Follow up periodically with referred agent to coordinate events and priorities.

Offer HomeConnects / HomeRewards  services, as applicable

Act as facilitator with vendors and suppliers as directed by sellers.

Premier Service Seller Commitment Point #13:
As your representative, I will contact and follow up with you after closing to assure the satisfactory completion of all service details. 

Pre-Close Activities / Details:

1. Provide the seller with a checklist of settlement items they should consider addressing at the closing.
2. Provide the seller with a checklist of items they should attend to in getting the property ready for final settlement.  Advise the sellers of scheduled walkthroughs and inspections.
3. Provide a checklist of items relating to departure from the property (address change notices, utility change over, etc.)
4. Attend settlement with or, if appropriate, in place of the sellers.  Inform the sellers of the activities and events that transpire at settlement.
5. Coordinate with buyers, selling agent and other parties to effect smooth transfer of possession.

Post-Close Activities / Details:

1. Remind sellers of the Premier Service survey opportunity to evaluate real estate services.
2. Extend services as a continued real estate resource through permission-based marketing.
3. Monitor Home Warranty, as needed.
4. Retain Seller's Disclosure documents and closing documents for TBD period of time (as required by law and in accordance with local practice).
5. Consider creating an annual market update on comparative properties.
6. Provide sellers with a copy of the settlement statement in January of the year following sale and settlement.
7. Advise the sellers early on that their positive testimonials and reference will aid future seller clients.  Follow up after sale to confirm permission and secure contact numbers.
8. Provide consumer information via mailings or e-mail in order to keep these satisfied clients up to date on critical items and items of interest.
9. Schedule some method of follow-up to maintain contact with sellers. (Example:  Periodically provide them with statistics regarding your productivity and service record.)

Premier Service Seller Commitment Point #14:
As your representative, I will offer the opportunity to evaluate the services provided through the Quality Service Assurance Survey.  

Early Activities / Details: 

1. Discuss GMAC Real Estate value proposition.
2. Present the Premier Service Commitment document.
3. Assure clients of:
4. Quality and customized service targeted toward their needs;
5. Continual and timely communication, accessibility and responsiveness;
6. Service delivery at the levels agreed upon;
7. Access to special programs (in place and anticipated);
8. Our capacity for consultation, advice and information;
9. Our personal and company commitment to caring customer service.
10. Provide opportunity for the client to offer feedback and input on the nature and scope of service commitment throughout the marketing and sales process.
11. Identify and list "additional needs" on service commitment document.
12. Provide written service commitment and provide client with copy that includes contact numbers and data to ensure ease of accessibility.
13. Inform sellers that an independent third party company will be contacting them after settlement to solicit their evaluation of our real estate services.  Encourage their participation and candid feedback as to how we can improve our service.
14. Consider providing a copy of the survey early in the transaction so that they might anticipate and recognize its arrival post-sale.  
15. Invite direct and written communication from the sellers that might serve as a testimonial. 
16. Share with the sellers the results of past surveys and share your commitment to build your business by offering quality service and a willingness to be held accountable.

Premier Service^® Commitment Details for Sellers

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