Module 5 Flashcards
A tool used by an agent to determine a range of price for a subject property established by analyzing data.
Reveal the definitions by selecting the cards below.
Comparative Market Analysis (CMA)
The seller employs one broker but retains the right to sell the property personally.
Exclusive Agency
The seller employs one broker paying a commission even if the seller sells the property personally.
Exclusive Right to Sell
An employment contract that creates an agency relationship used by sellers to employ a real estate broker to find a buyer for their property.
Listing Agreement
The seller establishes a minimum, acceptable price and pays the difference between the sales price and the established minimum as commission.
Net Listing
The seller retains the right to list the property with multiple competing brokers and to sell the property personally.
Open Listing
The individual, who through a series of uninterrupted activities, brought about the completion of a contract.
Procuring Cause
When a license holder is not associated with the seller’s broker but is representing the seller through a cooperative agreement with the seller’s broker.
Subagency
The seller retains the right to list his/her property with multiple competing brokers. and to sell the property personally.
Open listing
An employment contract that creates an agency relationship with a seller that gives the broker the right to find a purchaser for his or her property.
Listing agreement
The seller lists the property with only one broker, but can sell it himself/herself without paying a commission.
Exclusive Agency
The real estate broker’s commission is the difference between the minimum net established by the seller, and the price that the buyer is willing to pay.
Net listing
Analysis based on properties that have recently sold that are most similar to the subject property.
CMA
Listing Package Checklist: Requirements of a valid listing agreement include the following:
names and signatures of all the owners
legal description of the property
definitive starting and ending date
Exclusive Right to Sell: A commission is paid even if the property is sold by the
owner
Multiple Listing Services: To prepare a CMA, the agent should use data only from the last
6 months
Paul Johnson signed a listing agreement with agent Tom with XYZ Realty. He also signed a listing agreement with Jake who is an agent at XYZ’s competitor Sun Realty. Both of the agreements give the agents the right to list the property for Paul. Even though Paul listed the property with Tom first, and Tom spent more time and money on advertising, it is Jake who ultimately finds a willing and able buyer and collects the commission.
What type of listing agreement did Paul sign with these agents?
Open Listing
Dorothy has listed her property twice in the past year and a half. Both of the listing agreements expired without producing a buyer. Dorothy feels that the agents didn’t try hard enough to sell her property. She knows that she definitely doesn’t want a For Sale By Owner (FSBO) because she doesn’t feel like dealing with the public, and just feels safer knowing that an agent will set up appointments to show the home for her so she doesn’t have to let just anybody in the door. Dorothy has a specific dollar amount in mind that she wants to realize from the sale of the home and anything over that is a commission to the broker.
What type of listing agreement might Dorothy be contemplating?
Net Listing
Yvonne wants to list her commercial property with multiple, competing brokers but feels like she has just as much chance at selling the property as any listing agent. Yvonne understands that there are a variety of benefits to listing with a broker, and knows that it will produce more prospects than selling it on her own. Yvonne also wants to be able to sell her property without paying a broker’s commission to anyone.
What type of listing agreement does Yvonne want to enter into?
Open Listing
Charles is a very cautious agent who always makes sure that he and his broker are covered in every situation. His latest listing at 705 Hauser Street was done by the book, in a way in which his broker will approve. Charles knows that regardless of who sells the property, his broker will be able to collect a commission on the sale.
What type of listing does Charles have?
Exclusive Right to Sel
April is an owner who is trying to sell her property on her own. She has taken some pictures of the property herself and has posted them on her Facebook and Instagram pages for all of her friends to see. Her home is lovely, but it has been sitting on the market for several months.
What is the main benefit of seller agency that April is missing out on?
listing her home in MLS
Randy wants to put his 4-bedroom home on the market. He’s been online viewing sites like Zillow and Trulia to get an idea of what the houses in his neighborhood are selling for. Armed with this information, he sets what he believes is a realistic price on his home. Three months later, his home has not sold.
What could an agent offer Randy that he was not able to do himself?
provide Randy with a CMA
Seth and Pat have decided not to enlist the services of an agent to sell their well-appointed condo because they do not want to pay a broker’s commission or fees. Seth has been fielding phone calls from potential buyers on his cell phone while at work, and setting up viewings in the evenings and on the weekends, taking up most of the couple’s free time. Neither Seth nor Pat thought to find out whether or not the callers were pre-qualified for a mortgage before they set up the appointments, and later found out that none of them actually were qualified to purchase the property.
How could a selling agent have lessened these sellers’ headaches?
made sure that potential buyers were pre-qualified
Josie and Eduardo want to get a fair price for their property. Their property is in a highly desirable neighborhood with easy access to main roads and shopping centers and should be a quick sale. Eduardo figured that they could sell their property themselves and save a few bucks by avoiding commissions and broker’s fees. Two offers have already been submitted to them, but they were way below asking price. Neither Josie nor Eduardo enjoy haggling and are unsure how to proceed when they talk to the potential buyers’ selling agents.
What benefit of a selling agent could Josie and Eduardo use now?
negotiation strategies
Subagency tends to occur more frequently in
rural markets
