Practice: Chapter 9 • The Listing Presentation

Front 1

The Residential Listing Agreement (RLA) defines the broker’s duties and rights
and is a bilateral written employment agreement that grants a
licensed real estate __ a fee for service.

Back 1

broker

Front 2

The most common listing agreement is the __
right to sell residential listing, whereby a broker is authorized to
find a ready, willing, and able purchaser for a property at a price

Back 2

exclusive

Front 3

The sale of
the respective property is generally not required for the broker to
earn the agreed to compensation; only that the broker find a
potential buyer who is ready, willing, and able to __ the property.

Back 3

purchase

Front 4

A verbal agreement is unenforceable: you won't get a __.

Back 4

commission

Front 5

“if anyone other
than the Buyer compensates Broker for services covered by this agreement,
that amount shall be credited toward the buyer’s obligation to
pay __.”

Back 5

compensation

Front 6

Open listing Commission:
Only if a separate compensation agreement is signed by the
seller. Broker is __.

Back 6

vulnerable

Front 7

Exclusive Agency Commission:
Here the seller appoints the broker as her “exclusive agent,” but
the owner may sell the property herself with no compensation
due __. MUST have a definite termination __.

Back 7

broker; date

Front 8

Exclusive authorization and right to sell commission:
Under this contract, the broker is the seller’s “exclusive
agent” and is granted the right to compensation no matter
who sells the property, including the owner. Best __
protection available.

Back 8

broker

Front 9

Kevin, both of the "E" listing agreements are identical except that Exclusive Authorization gives you commission regardless of who sells the __.

Back 9

property

Front 10

An open listing is a unilateral contract that is actually created only when the act is __.

Back 10

performed

Front 11

It is rare that a real estate office will take an __ listing.

Back 11

open

Front 12

In 1989, C.A.R. changed their MLS rules to allow listing offices to offer compensation to cooperating brokers without the obligation of __: buyer/broker agreement.s

Back 12

subagency

Front 13

The BRNN grants the “nonexclusive
and revocable” right to represent for one year or completion of a
resulting transaction, whichever occurs first, but the other buyer agreements
are not limited to one __.

Back 13

year

Front 14

The major advantage to the use of a Buyer Representation
Agreement is that because the broker can show the many __ properties (FSBOs, foreclosures, open listings) and still be compensated.

Back 14

unlisted

Front 15

A(n) __ listing agreement generally occurs when a broker has a contract to find a buyer and the owner grants the broker an option
to purchase the property for herself. An option listing isn’t really a
listing at all; it is really a “contract to contract” that is sometimes
used by some brokers. Brokers are forbidden from profiting from this. Avoid these listings.

Back 15

option

Front 16

A __ listing is an employment contract in which the broker’s
compensation is all monies received over and above the net
amount specified by the seller. The danger for unethical, illegal, practice makes this listing one to avoid.

Back 16

net

Front 17

Alternative Fee Listing (or Limited __ Broker, or Fee for Services, or menu-type listing) this type of listing is where the broker charges a flat fee for her counseling and
guidance services and then allows the seller to choose from and pay
separately for other services on the broker’s menu of services like: entry into MLS, signs, fliers, website, open house, staging, etc.

Back 17

Agency

Front 18

All
C.A.R. forms are reviewed __ a year and subject to modification.

Back 18

twice

Front 19

While three- to __-month listings are common, market
conditions, advertising deadlines, property preparation, or repair
times must be considered when deciding on the length of the listing
period.

Back 19

six

Front 20

If an address is too lengthy to place in the space provided,
insert the words “see addendum” and put the address or
description on an addendum and have the sellers __ it.

Back 20

sign

Front 21

Fixtures must be excluded in BOTH the listing agreement and purchase contract, or they will __ with the property.

Back 21

stay

Front 22

Buying agent gets compensation by bringing a buyer who is ready, willing, and __ to meet the contract terms.

Back 22

able

Front 23

good reason for requiring
all visitors to your Open House to sign the register: to prove they entered the house in case they try to buy the home after your listing __.

Back 23

expires

Front 24

To prevent people from buying (for no commission): they must have entered the home and the realtor must provide their names within __ days.

Back 24

3

Front 25

The listing must be submitted to MLS within forty-eight hours after the seller signs it unless the seller makes a written instruction to the listing licensee
to __ it.

Back 25

exclude

Front 26

The broker is not liable for incorrect information supplied to the broker
by the seller or for failure to disclose __ facts to the
broker.

Back 26

material

Front 27

the broker is not responsible for loss or damage to the property in connection with the use of a(n) __ or the showing of the property.

Back 27

keybox

Front 28

the licensee must obtain the owner’s written __ before having a for-sale sign installed.

Back 28

authorization

Front 29

Commission disputes: the loser pays the winners attorney fees unless the loser refused to try __ first.

Back 29

mediation

Front 30

Broker has 5 days to cancel a listing taken by an associate __.

Back 30

licencee

Front 31

(Binding) Arbitration of Disputes: both parties must initial for this to take __.

Back 31

effect

Front 32

Listing presentation stage 1:
visit to tour the home and ask their motivations.

Listing presentation stage 2:
Create the __ plan and present it to them

Back 32

marketing

Front 33

Listing presentation:
1. Do another quick tour to "check your notes" - this puts them at ease.
2. Ask to place your materials on the kitchen table.
3. Do NOT sit across from them - sit to the side or to the corner.
4. The theme of the
first two sections should be “we are excellent at getting homes sold
at great prices for people in a reasonably short time, with few __.”

Back 33

problems

Front 34

Explain to the owners that there is a
direct correlation between the number of buyers who actually
view the property and the number of __ received.

Back 34

offers

Front 35

If one of the owners turns away and cross their arms over their chest, that is a sure sign that they are not __ with what they just heard.

Back 35

happy

Front 36

Trial close for listing presentation: “How would you feel about seeing your home in an ad like this in a couple of days?”

Back 36

yeah

Front 37

Show them the active listings that are available and point out
that because they are the owners’ competition they set the __ limit of what the owners can ask for their home. Also mention __ listings and why they didn't sell.

Back 37

upper
expired

Front 38

buyers, not sellers, set the market value of a property by making an
informed offer to __ it

Back 38

purchase

Front 39

Nice: "I have already shown you what happens when you list a
home too high; it’s just a frustrating waste of your time and all you
would have accomplished would be to help sell your neighbors’
homes by __."

Back 39

comparison

Front 40

phase 3: go over the listing agreement. Some people just want to hear the __ version of it.

Back 40

condensed

Front 41

Trial closes: "where should we put the for sale sign"? or "Where should we put the __?" or even "I am ready to go to work for the two of you right now -- how do you feel about it?”

Back 41

keybox

Front 42

The C.A.R. ESP form is a good
one to use for estimated seller __.

Back 42

proceeds

Front 43

Respond to "We dont see many of your company's signs around here."

Back 43

“Well, it’s true that we don’t get a lot of listings in this area, but we always sell the ones that we do get, and for excellent prices too. Also, more signs mean more unsold listings."

Front 44

Respond to “Bill over at XYZ Realty said that he would sell my house for [x]
percent commission. Will you match that?”

Back 44

“You know, Mr.
Smith, it makes me feel bad when I hear people say that, because in reality, a reduced commission costs you money in the end; let
me explain. Firms that work for reduced fees know they will only get a small
fee, so they can’t afford to advertise and market like we do. They
usually generate less buyer traffic to your home, creating less competition, and you often don’t get as high a price.

Front 45

Respond to “We don’t want a lockbox; you’ll have to show it by appointment only. We don’t want anyone in our home unless you’re there to watch them, and we don’t want people walking in on us.”

Back 45

“Not only are these made of casehardened
steel that can’t be sawn off, they are electronic and record
the licensees that have shown the property. Every buyer that
is shown the property will be accompanied by their representative,
who is trained to keep an eye on them.” “Salespeople will not just
show up and come in; they will call first, per the showing instructions
in the MLS listing. If no one is home, they will leave a message as to when they are coming by so that you won’t be surprised. Does that sound safe enough?” “Mr. Smith, it is very important that we make it easy for licensees to show your home
so that we can get the maximum exposure to potential buyers. If
you were a salesperson with six homes to show to a buyer and
five were on keysafe but one (yours) was by appointment only,
which one do you think might not get shown?”

Front 46

Respond to “We don’t want our neighbors to know that we’re selling, so we don’t want a for-sale sign.”

Back 46

“I understand how you feel, but, believe me, your neighbors will know that you are selling. I don’t want your neighbors to get the wrong idea about what you are
doing here. Imagine what they will think you are doing if they
see an expensive car drive up with a few people who go in your
house and come out a few minutes later, then another expensive
car drives up and the same thing happens again and again. What
do you think they think you are doing? Besides, 56 percent of buyers make their first contact with a home by calling us from a for-sale sign; I don’t want to lose that many buyers, do you?”

Front 47

Respond to “We want our home advertised every week in the newspaper.”

Back 47

“Let me explain how we handle that. First, less than 10 percent
of today’s buyers look for homes in the newspapers; they use the Internet;

Front 48

Respond to “We want you to hold Open House every week until the property is
sold.”

Back 48

“It would be nice if I could do that, but I often have
more than one listing to service at the same time. Let me assure
you that I will hold the home open as often as possible, and
when I can’t do it, I’ll make every effort to have one of our
best salespersons do it for me; how does that sound?”

Front 49

Respond to “We want to sell as-is. We don’t want to get stuck with a bunch of costly repairs.”

Back 49

"The problem with putting
that in the listing is that it will scare away potential buyers
because they will think that you have a lot of repairs to do.
Remember, you can limit your liability for repairs through negotiation when an offer is presented to you. Structuring that is part of my job. If you are really concerned, then I recommend that we get a presale home inspection and termite inspection, so that we know exactly what potential repairs might be required.”

Front 50

Respond to “We aren’t taking a penny less than the asking price.”

Back 50

“The price
that you accept for your home is entirely up to you. I have
shown you what your home is worth today and I will update
you as we go along. When you get an offer that is less than
the list price, but is at market value based on what I have shown
you, you very much risk losing a good sale on your home by
counteroffering too high. it could even result in your getting
less than market value later on because if your home is on the
market for a long time, agents and buyers will begin to wonder
what’s wrong with it because it’s not selling. You need to be
very careful about that.”

Front 51

Respond to “We don’t want to list until we have found our next home.”

Back 51

“It would be nice if we could do that, but you would have to make your offer to purchase the next home contingent on the sale of
this one and, many if not most sellers are reluctant to accept a
contingent offer, usually because they feel they have lost control;
it would be a frustrating experience for you. If you are really
concerned about that, then let’s make the sale of this home
contingent on you purchasing a replacement home within thirty
days after yours is sold. That would fully protect you. How
does that sound?”