week 4 real estate
Assoece3
realhome.docxHome Listing 6
Home Listing
Dominique Noble
Real Estate Practice
Paul Hubble
10/19/14
Listing is contract between a seller of a real property and a real estate broker or their agent representatives who acts in the name of brokers. A listing agent is and individual who acts as a representative of a real estate broker and is tasked with helping the property owners sell their homes. They help the home owners sell their homes at the highest price possible. The listing agent helps with negotiation with the selling agents to reach a favorable win-win price by both the buyer and the seller. Listing agents are also tasked working closely with the parties concerned to make sure that the deal is closed on time (Potvin, 2014).
A property seller enters into a contract known as a Listing Agreement with the listing agent. It is necessary for the seller to assure the agent is working for a broker that is a member of National Association for Realtors. The listing agreement should include the following terms: beginning and termination date, the price list at which the property will be sold, amount of compensation to be offered to the broker, the conditions and terms under which the brokerage fee is paid and authorization of the agent to post a sign advertising the property.
In order to close a listing, an agent goes through a lot of activities. In fact, a home owner can be surprised with how much work an agent does in order to effortlessly get him the closing table and put the money in his pocket. The activities are divided into pre-listing activities, listing appointment presentation, reaching a listing agreement, marketing the listing, offer and contract, tracking loan process, appraisal, closing preparations and duties and follow up after closing.
Pre-listing activities: an agent is tasked with appointment with the seller for listing presentation. This can be done by sending of written or e-mail confirmation of listing appointments. An agent can also call to confirm the appointment. An agent will have to review pre-appointment questions and research on all comparable currently listed properties. He will also research on all the sale activities for the past 12 months from the public records database. He will then download the review property tax payroll and prepare comparable market analysis in order to establish a fair market value. He will also research on the property ownership and deed type and the public record information for lot sizes and dimension and to make sure if indeed the property is viable and clean. This will include the property land record, land use coding and deed restrictions, the property’s current use and also verification of the legal names of the owners in the country’s public property records (cha & Stolz, 2012). Listing appointment presentation: here an agent will give to the seller an overview of the current market projections and conditions. He will also avail to the seller his credentials and accomplishments in the market and present a CMA results to the seller which have to include comparable sold, current listing or even expired listings. The presentation will also involve pricing strategy based on interpretation of the current market conditions and professional judgment. The agent should also explain to the seller the work that they do and their roles in taking all the calls from in order to screen all the qualified buyers. This also protects the seller from curiosity seekers. An agent will lead the discussion of unique strategic marketing master plan, explain different agency relationships and determine the seller’s preferences. The agent will then reviews and give explanations of all clauses in listing contracts and obtain the seller’s signature. This comes after choosing a title company that is done by the aid of an agent if the seller has no preference (cha & Stolz, 2012). Once the property is under listing agreement, preparations for sale will be started. The property must look appealing in the eyes of the buyers. The seller will be tasked with reviewing of the title information, measure the interior room sizes, confirmation of lot sizes and note any unrecorded property line. He will also have to review the plan of the house and make a copy. This will help in reparations of showing instructions to the potential buyers and agree on showing time and window with the sellers. He will also obtain current mortgage loan information and verify the information with the lenders. The agent will help the seller with choosing the possible buyer financing options and alternatives. There will be reviewing of home owner association fee, do some research on the electricity bills and supplier, verify the security system, prepare a detailed list of property amenities and market impacts and assist the seller with completion and submission of home owner warranty application. The agent will then arrange for installation of yard sign and enter the property into multiple listing service database and several other websites. Signed copies of listing agreement will be provided to the seller by the agent within 48 hours and arrangements of a professional photographer pictures and create an appealing video of the property. This video is to be posted on countless websites (cha & Stolz, 2012). Marketing the property listed: this involves preparation of mailing and contact list and generation of mail merge letters to contact list. The agent will also return calls promptly even on weekends and place marketing brochures in all company agent mail boxes. The listing will be uploaded to company and personal websites and marketing data provided to buyers. The agent will be in review of MLS listings regularly in order to ensure that the property remains competitive in price. The agent will also be reviewing the weekly market feedback with the seller and share feedback received from the buyer. Offer and contract: the agent will review all offer to purchase contacts submitted by the buyers or their agents and counsel the seller on the offer. He will also contact the buyer’s agents to confirm if the buyer is qualified and discuss the offer. All offers will be negotiated by the agent on seller’s behalf and he will also review all the buyer’s credit report results advising the seller of the best and worst case scenario. He will also deliver unrecorded property information to the buyer (cha & Stolz, 2012). Tracking loan process will involve follow up of loan processing by contacting the lender to ensure processing is on track. He will also help in reviewing the home inspector results and help in negotiation of payment. The appraisal duties of the agent will be scheduling of appraisal and follow up of appraisal. Closing preparations will be organizing and selecting the location where the closing will be done and ensuring the contract is signed by all parties. The following are all the documents and forma needed for listing: Listing Agreement-this form acts as a contract with seller to list property for sale. MLS Information Work Sheet- this is a form describing the property for the MLS listing, it is divided into Single Family Residential Listing, Multifamily Duplex, or Land lot for sale. Consumer Guide to Agency Relationship-this document provides the relationship between agents, HLS and the clients who re the property sellers. Residential Property Disclosure Form- this is required for existing single family homes. It is not used for new homes, larger apartments and land. This form requires the seller to disclose all defaults. Lead Based Paint Disclosure Form- required also for single family homes to disclose known presence of lead based paint (Elias, 2010). The following are some of the problems encountered by agents when listing property: incorrect property description especially when the property to be listed is subject to prior partition, there is need for description from the plat map. Another problem is failure to recognize property subject to land use ruling. Under this situation, plat map reference will put agents on notice to find out the LUR of the property. The other common problem is completing the listing after meeting with the seller but failing to get the seller’s approval of description. Escalation of prices in the market and stiff competition from other property listed may lead into extended periods in search of a buyer. The Agent may also fail to LUR file from the planning Bureau. The only solution to these problems is for the agent to do extensive research about the property to be listed and also for the seller to avail and produce all the necessary information needed for completing the listing exercise (R., 2013).
Reference
Potvin, M. E. J., Chenier, T., & Faber, J. L. (2014). U.S. Patent Application 14/173,737.
Cha, K., Stolz, T., & Wammes, M. (2012). United Nations Security Council Sanctions and the Rule of Law: Ensuring Fairness in the Listing and De-Listing Process of Individuals and Entities Subject to Sanctions. Whitehead J. Dipl. & Int'l Rel., 13, 133.
Elias, B. K., & Morrise, M. C. (2010). U.S. Patent Application 12/813,976.
