6. Listing Agreements and Buyer Representation Flashcards
COMPETITIVE MARKET ANALYSIS (CMA)
A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style, and amenities.
EXCLUSIVE-AGENCY LISTING
A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker.
EXCLUSIVE-RIGHT-TO-SELL LISTING
A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time, to sell the property on the owner’s stated terms, and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker.
MARKET VALUE
The most probable price property would bring in an arm’s-length transaction under normal conditions on the open market.
MULTIPLE-LISTING SERVICE (MLS)
A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most multiple-listing services accept exclusive-right-to-sell or exclusive-agency listings from their member brokers.
NET LISTING
A listing based on the net price the seller will receive if the property is sold. Under a net listing the broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states.
OPEN LISTING
A listing contract under which the broker’s commission is contingent on the broker’s producing a ready, willing, and able buyer before the property is sold by the seller or another broker.
OPTION LISTING
Listing with a provision that gives the listing broker the right to purchase the listed property.
