Listings Flashcards
expired listing
a property that had been listed but not sold during the listing period
Farming
Farming consists of concentrating efforts on a certain type of property, a certain location of property, or even a certain type of owner. Typically, an agent will send postcards or newsletters to people in the farm area.
a comparative (or competitive) market analysis (CMA)
A CMA provides a comparison of the seller’s home to similar homes that have been sold, are presently for sale, or were removed from the market because they did not sell.
If prepared properly, a CMA enables sellers to see the indicated value of their property based on what market activity shows buyers have been willing or not willing to pay for similar property.
A listing agreement
the listing agreement is essentially an employment contract.
It employs the broker to secure a buyer ready, willing, and able to purchase the seller’s property on terms satisfactory to the seller. If such a buyer is found, the broker has the right to receive a commission from the seller.
The listing does not usually authorize the broker to bind the seller to a sales contract when a buyer has been found. If the buyers refuse to go through with the transaction or cannot obtain the necessary financing, they would not be willing and able to purchase the property and the broker would not be entitled to a commission.
Depending on the terms of the listing agreement, the broker may be entitled to a share of any forfeited earnest money.
a net listing
Some states allow a net listing, in which the commission is expressed as “all proceeds in excess of the seller’s listing price.”
The broker is entitled to a commission if
- the transaction fails because the seller cannot clear a defective title, the seller cannot deliver possession within a reasonable time, the person who contracted with the broker is not the owner or has no authority to sell, or the seller misrepresented material facts about the property
- the seller refuses to conclude the sale
- the seller and the buyer agree to mutually rescind the contract
a protection (holdover, safety, extender, or carry-over) clause
This clause provides that the broker is entitled to a commission if within a certain specified period (often 90 days to six months) after the listing expires, the seller sells the property to a prospect who became aware of the property because of the broker’s actions during the listing period (e.g., the broker showed the property to the buyer or the broker provided a list of people to whom the clause will apply).
This clause does not extend the listing period or allow the broker to continue to solicit buyers after the listing expires.
a nonexclusive listing (also called an open listing)
a broker may recover a commission if they can prove that they:
- is duly licensed (i.e., they have a current real estate license)
- has found a ready, willing, and able buyer
- was the procuring cause of the sale (the procuring cause of the sale is the person whose efforts bring about a substantial agreement)
With this type of listing, the broker would not be entitled to a commission if:
- another broker was the procuring cause of the sale (so the owner may list with more than one broker at the same time)
- the owner sold the property themselves
exclusive agency listing
permits the owner to sell the property through their own efforts without any obligation to pay the listing broker a commission.
However, it eliminates the competition from other brokers by making the listing broker the seller’s exclusive representative.
It gives only one broker the right to sell a property during the listing period, while it also reserves to the owner the right to sell their own property during the listing period without liability for a commission.
An exclusive right-to-sell listing
entitles the broker to a commission regardless of who sells the property during the listing period. It provides for the payment of a commission to the listing broker even though the owner makes a sale without the aid of the broker.
A home warranty
is an insurance contract, which is common in today’s real estate market. The warranty generally covers the repair and replacement of equipment and appliances, such as dishwashers, plumbing systems, and electrical systems.
Common hazards affecting homes
- contamination caused by hazardous chemicals used in the manufacturing of illegal drugs
- asbestos
- formaldehyde
- lead and lead-based paint
- radon
- mold and toxic mold
- hazardous waste contamination, including underground storage tanks (USTs) and oil tanks and groundwater contamination
- high-voltage power lines
- waste disposal sites
Asbestos
was used in architectural and construction applications before being banned in building construction in the United States in 1978. It may be found in four common types of materials:
- fluffy material sprayed on ceilings or walls as a fire retardant
- granular, cement-like plaster troweled or sprayed on the walls or ceilings for fire or soundproofing purposes
- broken wallboard used for insulation that has material applied behind it
- pipe or boiler insulation that looks like felt, cement, or fibrous wrapping paper
Formaldehyde
is a colorless, gaseous chemical compound that is generally present at low, variable concentrations in both indoor and outdoor air.
Sources of formaldehyde in the home include smoke, household products, unvented fuel-burning appliances (like gas stoves or kerosene space heaters), and adhesives used to bond pressed wood building materials and plywood.
Radon
is a colorless, odorless, tasteless gas that is a by-product of the natural decay of uranium present in the earth.
Radon present in surrounding soil or in well water can be a source of radon in the home.
Radon gas breaks down into radioactive particles (called decay products) which, when inhaled, can damage lung tissue and cause lung cancer.
