Prac pp chp 4
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This document discusses how to properly fill out a listing agreement and determine a property's listing price. It explains that the listing agreement must be completed accurately as it is the first contract in the sales process. It also discusses providing sellers with a listing kit of relevant forms. Finally, it outlines the broker's role in appraising a property, including using comparable market analyses and inventory data to determine a fair market value and saleable listing price for the seller. Proper valuation is key to achieving a successful real estate transaction.
Prac pp chp 4
- 1. Chapter 4 Breakdown of the Listing Agreement How to Fill Out the Listing Agreement
- 2. I. Breakdown & Analysis of Listing Agreement
- 3. Listing Agreement Because the listing agreement is usually the first in a series of contracts and documents used in the sale of real property, you must completely understand the form and fill it in accurately and explicitly, leaving no room for doubt
- 25. Listing Kit A LISTING KIT is the packet of forms an agent provides to the seller when taking a listing
- 35. III. The Broker’s Role in Real Estate Appraisal
- 36. Appraisal Helping a seller determine a home’s selling price is the key to getting the seller to set a reasonable listing price Proper valuation is the key to real estate sales
- 37. A. Helping Sellers Determine Listing Price Market value is sometimes referred to as “exchange value” or “value in exchange” MARKET VALUE refers to the amount of cash that is most likely to be paid for a property on a given date in a fair and reasonable open market sale A property well listed is a property half sold As a fiduciary, you owe it to your principal to obtain the best market price, but you also owe it to yourself to get the listing at a saleable price
- 38. It’s up to you to research the market and come up with a saleable price, or market value, derived from a reliable source, usually the MLS There are several approaches to valuation: Market Data/Comparative Approach Cost Approach Net Income/Capitalization Approach
- 39. B. Market Data Approach or Comparative Approach • Comparing the potential listing with similar properties of the same type and class, which have sold recently or are currently on the market, produces an estimate of value under the market data approach • The comparative approach is the most reliable expression of value because it represents the reactions of informed buyers and sellers • A comparative market analysis is your most effective tool at your disposal
- 41. C. Inventory (MLS) Inventory (MLS) – is the number of months’ supply of home listings “for sale” at a particular time In a BUYER’S MARKET there are more listings than buyers In a SELLER’S MARKET there are more buyers than listings
- 42. D. Pitfalls in Accepting Overpriced Listings Do not take a listing when it is overpriced by a relatively large margin Overpriced properties are stigmatized by market-savvy brokers who won’t waste their time showing them Houses on the market for too long, even with a price reduction, may now be perceived by buyers as having something wrong with them
- 43. E. Licensed Appraisers California allows sales agents to make unverified or informal appraisals, but professional appraisers must be licensed by the California Office of Real Estate Appraisers Professional appraiser’s work is vital to lenders, expert testimony in legal proceedings, or taxation matters.
- 44. CHAPTER SUMMARY • Breakdown and Analysis of the Listing Agreement • Completing the Listing Kit • The Broker’s Role in Real Estate Appraisal