Course II-III Interactive - Kaplan Professional

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Course II-III Interactive Study Group

Representing Sellers

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Question

Which of the following should presented when meeting with a potential seller for the first time? a. Listing agreement b. Purchase agreement c. Seller’s Disclosure Form d. Agency Disclosure Form

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Question!

Regarding the agency disclosure form; a. It must be presented at the first substantive contact with a prospect. b. It is a binding contract. c. It must be signed by agents and brokers. d. It is issued by the state.

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Question

Presentation of the Agency Relationships in Real Estate Transactions form is required by

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a. Minnesota Realtors Association b. Code of Ethics c. National law d. Minnesota law

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Question

The Agency Relationships in Real Estate Transactions form…

a. is a binding contract. b. must be signed by the agent. c. must be discussed at the first substantive contact with a prospect. d. may be presented when drafting contractual agreements.

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Question

What does the Agency Relationships in Real Estate Transactions form specifically address? When does the law require it? Any exceptions?

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Question Which of the following is likely the MOST important number from a seller’s perspective?

a. The listing price b. The selling price c. The seller’s net d. The commission paid to the broker

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Question

Which of the following is NOT a required element of an exclusive right-to-sell listing contract?

a. A rollover clause. b. An expiration date. c. The commission. d. The agreed upon listing price.

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Question Which of the following actions by the SELLER would definitely be a breach of an exclusive right to sell right-to-sell listing agreement?

a. Insisting on using a particular closing company b. Selling the property herself, not paying commission. c. Leasing the property during the listing term d. Moving out prior to the expiration of the listing agreement

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Question A married couple is selling a property. Which of the following statements is TRUE?

a. If they own the property as joint tenants, only one spouse need sign the listing. b. If a spouse does not sign the listing, that spouse is not obligated to sell or pay a commission. c. If the property is their homestead, they will still have to sell. d. Because they are married, only one spouse need sign the deed at closing.

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Question

Which of the following is LEAST important when preparing a typical MLS search for a buyer?

a. Price range b. MLS area c. Number of bedrooms and bathrooms d. Length of time the seller has lived in the home

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Question Which of the following is TRUE?

a. Sellers are often unrealistic about their properties value. b. Current market information is very valuable. c. Sellers will obtain pricing information from online sources.

d. All of these are true.

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Agency Relationships In Real Estate Transactions

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V. HOW TO READ A LISTING

Before you can prepare a CMA, you must learn how to de-code

the MLS abbreviations and data.

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VI. PREPARING A COMPETITIVE MARKET ANALYSIS

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A. Collect data

1. Subject property a) Information gathered at the walk-through

appointment b) Search the county property and tax records c) Search the MLS for past data

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A. Collect data

2. Neighborhood/area a) Define the neighborhood boundaries for

comparison. b) Become familiar with neighborhood

features such as parks, schools, shopping, public transportation and overall desirability.

c) Research the MLS for all recent sales activity in the immediate area to establish the broad price range of the neighborhood.

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A. Collect data

3. Comparable properties a) Create criteria for the MLS search. b) Search active, pending, and sold listings c) Compare and analyze data

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B. Primary criteria to analyze 1. Total finished square footage 2. Location within the neighborhood 3. Foundation size 4. Above ground square footage versus below

ground square footage 5. Style 6. Lot size 7. Bedrooms and bathrooms 8. Condition

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C. Additional points of comparison

1. Age/year built 2. Curb appeal 3. Garage and parking 4. Date of sale 5. Method of financing 6. Seller paid closing costs 7. List price versus sale price received

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D. Select comparables

D. Select comparables 1. Active listings 2. Pending sales 3. Sold listings

E. Establish a price range F. Prepare the CMA form

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Address Price Bds Bth TFSF S=123 Kaplan Way $255,000 4 4 2,710 1234 Red Hill Curve $271,000 4 4 2,863 1234 Eagle Ridge Road $288,900 4 3 2,359 1234 Sky Ridge Alcove $299,900 4 3 2,256

Averages: $286,600 4.0 3.3 2,493

Pending Listings Address Price Bds Bth TFSF S=123 Kaplan Way $255,000 4 4 2,710 1234 Harvard Road $279,900 4 4 2,960 1234 Falcon View Pl $279,900 4 3 2,308 1234 Oaks Trail $299,900 4 4 3,088

Averages: $286,567 4.0 3.7 2,785

Sold Listings Address Price Bds Bth TFSF S=123 Kaplan Way $255,000 4 4 2,710 1234 Timber Trail $285,000 4 4 2,836 1234 Home Court $295,000 3 4 2,610 1234 Nickle Lane $290,000 4 4 2,999

Averages: $290,000 3.7 4.0 2,815

Median of Comparable Listings: $288,900 Average of Comparable Listings: $287,722

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B. Listing Contract: Exclusive Right To Sell, page 1

4 123 Kaplan Way

Kaplan Hills 2nd Lot 8, Block 2 Subdivision CD 7200

Sam and Susie Seller Sunshine Realty

Today’s Date 120 days later

Today’s Date

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C. Listing Contract: Exclusive Right To Sell, page 2

123 Kaplan Way

XXX

7 XXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

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Sunshine Realty Your Name Today’s Date

Susie Seller Sam Seller

123 Kaplan Way, Suburbia, MN 55111

Seller’s Current Phone Number

123 Kaplan Way, Suburbia, MN 55111

Seller’s Current Phone Number

Today’s Date Today’s Date

Seller’s Current Email Address Seller’s Current Email Address

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Course II-III Interactive - Kaplan Professional

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