Exclusive Right-To-Sell Listing Contract

Strategies of Listing: Exclusive Right-to-Sell Listing Contract

HAWAIIREALTORS.COM

1 DISCLAIMER

The author of this presentation and/or the continuing education provider are solely responsible for the accuracy of information contained in this presentation. The materials and information provided in this presentation are intended to provide general education and information and are not a substitute for obtaining legal advice or other competent professional assistance to address specific circumstances. Certification of this presentation shall not be construed to constitute the Real Estate Commission's approval of the materials and information discussed in this presentation. The Commission does not warrant the accuracy, adequacy, completeness, and appropriateness of the information and any forms included in this presentation. The Commission renders no judgment on the value or merits of this presentation. The Commission certifies the presentation's delivery and design, but not its content.

2 Overview

 This course identifies all sections of the Hawai‘i Association of REALTORS® Exclusive Right-to-Sell Listing Contract for a better understanding and proper usage of this form.

3 Course Objectives  Understand different types of listings and what makes an exclusive right to sell listing contract different from the others.  Explain the sections in HAR’s Exclusive Right to Sell Listing Contract.  Define obligations in an agency relationship with seller.  Understand brokerage firm’s obligations and seller’s obligations including disclosure requirements.

4 Exclusive Right-to- Sell Listing Contract

 Most commonly utilized instrument providing the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly.

5  Owner pays both the listing and Exclusive selling broker fees. Right-to-  Owner cannot sell Sell Listing the property without paying a Contract commission, unless (CONT) an exception is noted in the contract.

Exception to the contract: Say, a neighbor or friend of seller has expressed an interest in buying the property. A listing agent & broker may give the seller X number of days to produce a contract with the neighbor without owing a commission or obtain an exclusion list from the seller.

6 Other Types of Listings

Open Listing Seller retains right to sell themselves (FSBO), no Broker commission paid Seller may list with more than one Broker, full commission to Broker who sells the property

• Open Listing: It is non-exclusive agreement meaning the owner may execute open listings with more than one real estate broker (generally buyer’s agents) and pay only the broker who brings an able buyer whose offer the owner accepts. Buyer’s agents should have a written agreement with the seller or a Buyer’s Agreement contract with the buyer before presenting a contract to purchase even in the case of “broker’s protected” or “brokers welcome”.

7 Other Types of Listings (CONT)

Open Listing Does not require a definite termination date, unilateral contract Cannot be on MLS

• Unilateral contract means the seller must pay a commission if a broker sells the property but the Broker is under no obligation to bring about a sale or market the property. • Since listing is given to several Brokerage companies and most brokers are not likely to spend much money advertising this type of listing can work against a seller

8 Other Types of Listing Contracts

Exclusive Listing Broker represents seller only Broker can cooperate with another brokerage, listing commission paid and split Seller can still find a buyer themselves, no commission paid.

Exclusive Listing - similar to an open listing except the major difference is the broker will represent the owner. • The owner still reserves the right to sell the property and not pay a commission. • The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the broker is paid a listing commission that is shared with the selling broker, so the owner can pay both fees

9 Who Can Use the Hawaii Exclusive Right-to-Sell Contract

“The entire real estate industry on condition that there shall be no alteration of the printed portions, pagination, or paragraph numbers or breaks.”

The listing contract is copyrighted.

The contract or form is not intended to identify a real estate licensee as a REALTOR

10 NAR Professional Code of Ethics

 A licensee selects whether they are or not a REALTOR and a member of the National Association of REALTORS  Seller made aware NAR members are held accountable for their actions and may use the grievance system to address a complaint  NAR non-members are not required to participate in the grievance system

11 Property Reference or Address

 Include full street address and unit numbers  Include the full Tax Map Key (TMK) numbers that distinguishes individual district location of all land parcels. Div___ /Zone___ /Sec___ /Plat___ /Parcel___ /CPR___

Address: if no street number has been assigned reference a Lot number and street name TMK: DIV = island Zone = island district Sec = larger areas within the district Plat = specific areas or subdivisions within a section Parcel= lot CPR= # of parcel subdivision

12 Brokerage Firm & Licensee Info

 Who holds the listing? Brokerage or Licensee?  (Brokerage)  Can a licensee take a listing with them if they leave the brokerage?  (Depends on brokerage policy)

Answer: brokerage. Many brokerages have policies that if a licensee leaves a brokerage the listing may or may not go with the licensee. The seller has the option to stay with the current brokerage or write an new listing agreement under the new brokerage the licensee moved to.

13 Brokerage Firm & Licensee Info (CONT)

 Does a new exclusive right-to- sell listing contract need to be written if licensee moves to another brokerage during the original listing contract?  (Yes)

14 Brokerage Firm & Licensee Info (CONT)

Brokerage and license #

Address Licensee and license #

15 Seller’s Name

Legal name

Company or LLC name

Trustee or other title (President, etc.)

Multiple Owners – if too many owners, i.e., big Hui, then get Power of Attorney for one or two owners to sign for all.

Multiple owners may need to have a signature addendum added to the Listing Contract to get all owners consent to list and sell the property.

16 Note: Prospect list from former listing agent required before signing a listing agreement.

17 Agency  “The Buyer and/or Seller in a real estate transaction in Hawaii may retain a real estate Brokerage Firm as their agent”  Hawaii law requires real estate licensees of a Brokerage Firm to disclose orally or in writing to Seller and/or Buyer to whom they represent

Brokerage firm includes all of its licensees not just the seller or buyer agent. The licensee within a Brokerage may represent only a seller, a buyer, or both.

18 Agency: Forms of Representation

 Seller’s Agent – Brokerage Firm represents seller only and owes seller the highest duties, including confidentiality, loyalty, and due care and diligence.  Buyer’s Agent – Brokerage Firm represents buyer only and owes buyer the highest duties, including confidentiality, loyalty, and due care and diligence.

19 Agency: Forms of Representation

Dual Agent – Brokerage Firm represents both Seller and Buyer. Dual agents must remain neutral in negotiations and must not advance the interest of one party over the other.

Example: Brokerage has a seller property listed and buyer agents in the same brokerage have a buyer interested in seller’s property.

20 Agency: Forms of Representation

 If Seller agrees to Dual Agency a separate written agreement is required by Hawaii Law above and beyond the choices noted on the Exclusive Right-to-Sell Listing Contract = Dual Agency Addendum.

21 Agency: Forms of Representation

 Customers – no agency or brokerage representation

22 1. By assisting Buyer in Can a Seller’s writing the Purchase agent Contract, represent a 2. By presenting the Buyer as a contract to the Seller, customer? 3. By reporting back acceptance or any Yes or No? request for changes to the Purchase Contract via a Counter Offer.

Answer: Yes

A licensee cannot negotiate or otherwise advise a customer in the transaction. It is highly recommended a buyer seek legal council before signing a Purchase Contract

23 Ownership, Title, and Authority

 Seller warrants and certifies the seller is: 1. Owner of the property and no other persons or entity have title to the property 2. Only those parties named have title. 3. Has full authority to execute a Listing Contract and sell the property. 4. Is not party to any other listing contract or commissions agreement to sell the property.

Exceptions: 1) Property is held in a trust, listing agent needs should write the full trust name and determine who the trustees are 2) Property is owned in an LLC or company name. Agents need to document in writing which parties have the right to sign for and otherwise obligate the organization. 3) In case of death, the property may need to go through Probate Court or if passes on to surviving spouse. Agents need to obtain a copy of the death certificate for title to be adjusted. 4) Divorce, make sure both parties if owners sign and agree to all seller obligations of the listing contract. Often good to have a written range of acceptable selling price and selling terms added to the Listing Agreement upon signature.

In all cases having a Preliminary Title report done prior to a listing contract can determine who the owners or record are as well note if red flags, such as liens or easements.

24 Exclusive Right-to-Sell

 “Means that the Seller shall list the Property with Brokerage Firm only and that Brokerage Firm is entitled to a commission if the Property is sold by Brokerage Firm, Seller, or anyone else”.

Seller is agent of Brokerage Firm

25 Exclusive Right-to-List

 Seller shall conduct ALL negotiations regarding the sale of the property ONLY through the Brokerage  Seller will refer ALL communications or inquires received relating to the sale of the Property to the Brokerage Firm from ANY source during the listing period

If Seller receives a lead from a friend or someone who stops because of a “For Sale” sign in the yard or advertisement they have seen, Seller should refer all inquires for showings and questions to the Brokerage Firm.

26  Listing agreement is between the Seller and Brokerage for a set period of time  Does not terminate if Exclusive listing agent leaves Right-to-List listing Brokerage  Does not automatically transfer to Listing Agent’s new Brokerage

27 Listing Period  Needs to have a written beginning date and ending date  Dates need to correspond with Brokerage and Seller’s expectations relating to the sell of the property  Dates should reflect current market absorption rate

Dates referred to in contracts generally end on the day specified at 11:59 PM

Start dates should be in accordance to the Brokerage (licensee) marketing plan, local MLS rules if posting on MLS, and standards of the Hawaii Association of Realtors

Absorption Rate lets you know how well the market is absorbing the current inventory of listings thus how long it might take to sell the property. In other words it’s a tool to weigh supply and demand of the current housing inventory on the market.

28 Listing Period Absorption Rate: Example 1. # of listing on market = 250 2. # sold last month = 32 3. # of sold X 12 (months) = 384 sold 4. Divide 384 by 52 weeks = 7.38/week sold 5. Divide 7.38 sales/week by 250 listings = 33.8 weeks is the absorption rate

Need to know two things – the total number of active listings (homes currently for sale) and the total number of homes that sold over a specific period of time usually within the last month.

Absorption rate is NOT an exact science. Figuring it is based on the premise that one will be looking for a trend. It is another valuable tool for sellers to better understand the real estate market and assist them to make informed decisions about listing their property.

29 Listing Period  Seller & Brokerage have a mutual agreement that either party can cancel the listing agreement with written notification in advance to the other party.  Seller & Brokerage agreed to not cancel a listing contract before a specified date unless agreed in writing by both parties.

1) Often 30 days but can be any time period. Protects the Brokerage and licensee from the Seller cancelling with no notice. 2) This time period allows the Brokerage and licensee to appropriately market the property as agreed by the Seller and licensee. 3) If either party decides to revoke or cancel a listing without justification it might result in an action for breach of contract.

30 Termination of a Listing Contract

Expiration Date

Death, Insanity, or Bankruptcy

Mutual Agreement

Regulation Or Destruction

• If owner or Broker dies after the seller has entered into a binding sales contract with a buyer and is in escrow the property can still close. • Eminent domain through condemnation of the property would terminate the listing as would if the property was destroyed or sold in a foreclosure

31 Items Included or Excluded  Unless otherwise specified in the Purchase Contract, all fixtures attached to the Property are included.  Personal property items are excluded.

This includes light fixtures, cabinets, door garage openers, doors, or any other items attached by wiring or hardware.

Seller need to understand if any item is not to be included with the sale of the property that is attached, they should exclude it in the listing contract or remove the item and make any repairs to the structure required from the removal of the item.

32 Listing Price  Is the price the Seller and Brokerage agree to market the property.  Brokerage licensee should council the Seller on current market value and conditions and make sure the price is sellable. Listing Agent should present a “range” of list price, and not the exact price. Seller chooses the list price.  CMAs are covered in CMA class and not in this class

1)Brokerage licensee should provide CMA on property and Absorption Rate 2)Brokerage can ask Seller to make adjustments to a listing price at certain time periods during the listing period. Any adjustments should be in writing. Example: Seller and Brokerage licensee sets date to review market action, value and price 30 days from listing date.

33 Listing Price  Your job, as the Listing Agent, is to tell the truth about the value of a property so that the Seller can make the best possible financial decision.  It is UNETHICAL to tell a Seller that his property is worth more than market value if it is not.

34 Compensation to Brokerage Firm

 Seller agrees to pay Brokerage Firm, in US Dollars  Payment is generally a percentage of the sale price and can vary per agreement between Seller and Brokerage. A specified dollar amount can also be agreed upon by both parties.  Seller pays Brokerage and Brokerage pays licensee

Some Brokerages add applicable Hawaii General Excise tax to the commission paid for services rendered according to Hawaii Tax laws. This needs to be discussed and agreed upon in writing with the Seller and written next to the listing price

35 Compensation to Brokerage Firm

Seller agrees to pay the Brokerage commission if any occur: a) Anyone, including Seller, procures the Buyer(s) at any price and terms acceptable to Seller.

36 Compensation to Brokerage Firm (CONT) b) Brokerage firm procures a ready, willing and able Buyer(s) to pay the Listing Price and meet the other material terms of the Listing Contract, and Seller refuses to sign the Purchase Contract

37 Compensation to Brokerage Firm (CONT) c) Brokerage firm procures a Buyer who meets the price and terms acceptable to Seller, Executes a Purchase Contract, and the Seller subsequently defaults.

c) Payable upon closing whether or not the closing occurs within the Protection period.

38 Compensation to Brokerage Firm (CONT)

d) Seller withdraws Property from sale before end of the Listing Contract without consent of the Brokerage Firm.

d) Period either party may end listing (Listing Period) does not require Brokerage consent as long as Seller provides the written notice as per the Listing Contract. Otherwise both parties must provide written consent.

39 Compensation to Brokerage Firm (CONT)

e) Seller enters into an Option Agreement: OPTION AGREEMENTS and/or Option to Buy.  Seller pays ½ of the premium (but no more than commission) if: Seller provides an Option to anyone during listing period regardless of exercise of the Option. Seller provides an Option to anyone on Brokerage Firms prospects list during the Protection Period.

An agreement to keep open, for a set period, an offer to sell or lease real property. Must have an premium or commission amount that is a separate and independent of the Purchase Contract. Remaining ½ of premium (commission) is paid in full when the Option is exercised, even if after the Listing Period.

40 Compensation to Brokerage Firm (CONT) f) In the event a Buyer defaults and deposits are forfeited, Brokerage is entitled to half of the deposit. g) If the Protection Period is exercised.

41 Protection Period

 Period of time Brokerage can receive full commission after listing period has ended and prospect from prospect list decides to buy within time frame.

The Brokerage is protected to receive full commission from the Seller for prospects (Buyers) who purchase the listed property during the protection period that had previously seen or been made aware of the property by the Brokerage during the listed period. Protection period usually 90 – 180 days.

Suggestion: You may also want to discuss procuring cause at this point. Protection Days – talk about what is realistic

42  1. Protection Period as determined. Protection  2. Shall be Period submitted to Seller within 10 days of (CONT) cancellation or expiration of Listing.

43  3. If a Buyer from the list within the protection period enters into an Protection accepted purchase contract, then the Period Brokerage is (CONT) entitled to compensation.  4. Compensation as per A-7 (full commission).

44 COMPENSATION TO COOPERATING BROKERAGE FIRM

Brokerage firm is authorized to cooperate with and compensate brokers participating through the MLS by offering, out of the Brokerage firm’s compensation, with either __% or $___ Brokerage firm may also cooperate with and compensate cooperating brokers outside the MLS, at the Brokerage firm’s discretion.

This could include previous Prospect list, commission issues, Brokerage forms, and Addendum.

45 Additional Terms

Space to provide any additional agreements or terms of the listing agreement.

This could include previous Prospect list, commission issues, Brokerage forms, and Addendum.

Should the Seller wish to exclude “Joe Smith” from the Exclusive Right to Sell Listing Agreement, write the legal name here, and make sure you put an end date on how long Joe Smith has to buy the property ~ 15 or 30 days.

46 What terms might be included?

ADDENDA What terms does MADE A PART your company of this require? contract What Addenda are part of this contract?

47 Brokerage Firm’s Obligations B-1 Best efforts

 Brokerage agrees to use its best efforts to achieve the sale To qualified buyers At price and terms  Acceptable to Seller

1. Brokerage agrees to exercise reasonable effort and due diligence to achieve the purposes of the listing agreement and keep the Seller informed. Brokerage is not responsible for the care and control of the property

48 Brokerage Firm’s Obligations B-2 marketing

A. Place a For Sale sign B. Advertise the property (MLS, internet, print, social media) C. Prepare information sheet D. Hold Open Houses

Seller understands that advertising cannot be retrieved

1. Brokerage may promote the property by any means which is in compliance with County, State, or Federal Law, or subdivision/CPR documents. Brokerage must also follow guidelines of Article 12

49 Brokerage Firm’s Obligations B-3 through B-6

 B-3 Brokerage agrees to communicate and keep seller informed in a timely manner.  B-4 Negotiating: Brokerage agrees to assist Seller in evaluating and negotiating.  B-5 Escrow Process  B-6 Fair Housing Laws

1. Keeping Seller informed 2. Assist in evaluating and negotiating all offers 3. Guide Seller through escrow and fulfill obligations 4. Comply with State and Federal anti-discrimination laws, or Article 10

50 Seller’s Representations Section C

Seller states unless otherwise in writing they are not aware of any of the following: C-1 Notice of Default (pre-foreclosure) C-2 Delinquent payments (loans, taxes, AOAO or community liens C-3 Bankruptcy or insolvency C-4 Litigation C-5 Special Assessments

Clear title or seller’s ability to transfer title could be affected by litigation, arbitration, administrative actions, government investigation, or other pending or threatening actions that affect or could affect the property (Meth Labs)

51 Seller’s Representations Section C (CONT)

C-6 Regulatory Violations C-7 Association Violations C-8 Financial Obligations C-9 Liens and Judgements; encumbrances that effect the conveyance of title

52 Seller’s Obligations Section D

 D-1 Cooperation: Assist in preparing property  D-2 Access as needed during reasonable hours  D-3 Lockbox consent  D-4 Securing Valuables  D-5 Obtain Professional Advice if needed  D-6 Review ALL Offers (even low ball offers)

Assist in preparing the property Provide reasonable access Lockbox consent Secure valuables Obtain professional advise if needed Disclosure material facts

53 Seller’s Disclosure

 D-7 Disclosure of Material Facts Hawaii Law (Chapter 508D, Hawaii Revised Statutes) requires Seller must provide a written disclosure to a Buyer for any property offered for sale containing any fact, defect, or condition, past or present, that could measurably affect the value of the property = Material Fact. Facts within Seller’s knowledge Can be observed from accessible areas Are required by law (HRS 508D-15)

• Facts must be within Seller’s knowledge or control • Can be observed from visible, accessible areas • Are required by Section 508D-15

54 Seller’s Disclosure

a) Pursuant to 508D-15 Within flood hazard area Within boundaries of noise exposure area Within boundaries of air installation compatibility Use Zone of any military airport Within the anticipated Tsunami inundation areas

Are required by Section 508D-15 1. special flood hazard areas designated on Flood Insurance Administration maps 2. Airports 3. Military bases 4. Tsunami areas

55 Seller’s Disclosure (CONT)

b) Seller understands negligent or purposefully failing to comply will result in liability for damages. Brokerage firm is obligated to disclose any findings contradictory to or not mentioned in the disclosure statement.

Are required by Section 508D-15 1. special flood hazard areas designated on Flood Insurance Administration maps 2. Airports 3. Military bases 4. Tsunami areas

56 Seller’s Disclosure Failures Hawaii Law requires Brokerages to disclose facts to Seller, Buyer, and Buyer’s agent if: No written Seller’s disclosure statement is provided Third party reveals facts inconsistent with or contradictory to Seller’s disclosure statement.

• If a seller purposely or negligently fails to comply or disclose facts it may result in liability for damages

• Add some real life examples of Seller not disclosing - what were the results.

• May mention that if owner is out of the state or bank owned property, they also can hire an inspector to do an inspection.

57 Amended Seller Disclosure

 Seller must amend the Seller’s disclosure if: Seller becomes aware of new facts Any statement in the disclosure found to be inaccurate that affects the value of the property Any blank lines.

Late disclosure –Seller must provide an amended disclosure statement in writing within 10 days after the discovery or before 12:00 on the last business day prior to sale recordation of the property.

58 Seller’s Obligations

 D-8 Leasehold Disclosures  D-9 Fair Housing Laws  D-10 Sex Offenders  D-11 To Produce Prospects From Prior Listing(s) = Prospect List  D-12 Mediation and Arbitration  D-13 Escrow

• Seller agrees to provide and pay for a current Leasehold disclosure required by Hawaii law and authorizes the Brokerage Firm to order such disclosure. • If another brokerage firm earns a commission due to the sale of the property from a buyer on the prospects list, Seller is not obligated to pay the current Brokerage Firm any commission

59 Escrow

 A bonded disinterested third party employed to help with the conveyance and by which money and/or documents are help until completion and satisfaction of terms and conditions of a sales contract or escrow instruction have been achieved.  Seller hereby irrevocably assigns to Brokerage the above compensation.

Through the listing agreement the Seller irrevocably assigns to Brokerage Firm all compensation including any GET tax to the Brokerage will be paid from Seller’s funds and proceeds through escrow.

60 Seller agrees to pay

 D-14 Costs A. Agreed upon commission to Brokerage firm B. Customary closing costs C. Costs of Homeowner Association and all docs

61 Seller agrees to pay (CONT)

 D-14 Costs D. Costs involved with termite or survey matters E. Any other obligated or agreed to fees or costs F. Legal fees

62 Section E Seller Authorizations

 E-1 Other Brokerage Firms Brokerage Firm to cooperate and share commissions with other brokerage if they bring a sale of the property.

63 Section E Seller Authorizations (CONT)  E-2 Other Clients Brokerage Firm may list other properties for sale and show prospective buyers alternative listed properties. Seller agrees and waives objection.

Seller agrees, waives and consents to any objections should Broker show or list alternative properties.

64 Section E Seller Authorizations (CONT)

 E-3 Release of Information a) Brokerage may obtain any information regarding mortgages, leases, rents, maintenance fees, taxes or like items. b) Seller consents to publication of property info on MLS. Brokerage must comply with MLS rules.

• Seller authorizes Brokerage Firm and Escrow to obtain any information regarding: 1. Mortgage balances 2. Lease rents 3. Maintenance fees 4. Property management fees and contracts 5. Collection accounts 6. Property taxes • Consents publication of listing and other data in the MLS and other internet sites

65 Section F MISCELLANEOUS TERMS

 F-1 FIRPTA - Foreign Investment in Real Property Tax Act Is a Federal law of the IRS affecting foreign investors in US/Hawaii requiring the Buyer to withhold a specified percentage of the property selling price to cover any Seller Federal tax liability. 10% of sale price withheld (15% if over $1 million)

• Percentage has been 10% • If Seller does not provide the buyer with a certificate of exemption or waiver from this law within 14 days of an accepted offer date, escrow is authorized to withhold and forward the amount together with the appropriate IRS forms to the IRS upon recordation of the property. • It is the buyer’s responsibility to determine if the seller is a foreign person or entity. Escrow is a great help here.

66 Section F MISCELLANEOUS TERMS

 F-2 HARPTA – Hawaii Real Property Tax Act Is a State law affecting a Seller who is a non-resident or entity of the State of Hawaii requiring the Buyer to withhold a specified percentage of the property selling price to cover any Seller State tax liability. 5% of sale price.

• Percentage has been 5% • Is a law that allows Hawaii to collect capital gains taxes from absentee sellers. • The Buyer is responsible funds sent to the Hawaii Department of Taxation with 20 days following recordation. Escrow usually does this for the Buyer. • Exemptions are: • Sellers are Hawaii residents • Seller is not required to recognize any gain or loss by the State of Hawaii • Seller sale does not exceed $300,000 and the property has been used as the primary resident • Seller is doing a 1031 exchange

67 Section F MISCELLANEOUS TERMS

 F-3 Conflict in Terms Any handwritten word prevails over typed or printed word. Must be initialed by all parties. Any typed work prevails over any printed word. Any special terms prevail over standard terms.

Make sure any changes to the Standard form is initialed by all parties, Seller and Buyer.

68 Section F MISCELLANEOUS TERMS

 F-4 Indemnification Seller agrees to indemnify, defend and hold the Brokerage Firm harmless from all claims, disputes, litigation, judgements, and attorney’s fees or failure to disclose any material fact by Seller.

Seller agrees to indemnify, defend and hold the Brokerage Firm harmless from all claims, disputes, litigation, judgments, and attorney’s fees arising from any fraud, misrepresentation of fact or failure to disclose any material fact by Seller.

69 Seller Acknowledgement Seller and Brokerage acknowledge that they have read and agree to the terms and conditions of this contract. Seller represents that persons signing below have the authority to sign.

70 Signatures

 If the Seller is in a trust, cooperation, partnership or other legal entity, the person signing must have the authority to sign on behalf of the Seller. Copy of trust, etc. needed for escrow.  Phone numbers, mailing and email addresses are important for a Brokerage Firm to have on file.

71 Seller Acknowledgement

Seller initials that the Brokerage Firm or Listing Agent has provided a fully executed or completed copy of the Listing Contract and attached Exhibit A (Property Information for the MLS).

72 Keep Records

 Document in your folder, day timer, computer.  All conversations… if necessary follow up with an email that says “In our phone conversation today…”  Use Email to help you document events.

73 Keep records

 Text are not advised. Screenshot or copy and paste into an email.  #1 Complaint of Sellers – Not hearing from their Agent enough… STAY IN TOUCH.

74 Listing Mission Strategies Scenarios

75 Mission

 Identify 10 sources for prospecting for Sellers

Instructor notes:

Prior to the course: Prepare separate envelopes with “Mission” scenarios that are on slides # 61 – 67.

INTERACTIVITY: MUST DO THIS – Break out into groups. Each group will receive a “Mission” with either specific questions to answer or to develop dialog for a specific situation all dealing with listing strategies. Then each group shares their answers.

76 Mission

 Develop 10 pre- appointment questions to ask potential Sellers

77 Mission

 Seller says: “Besides placing property in MLS, what are you going to do for me to get my property sold?”  Share Ideas!

78 Mission

Develop dialogue for the following scenarios when the seller wants to price higher than market:  “We can wait until we get our price. We’re not in any rush.”  “We’ve put in “x” $ into this property on top of what we bought it for & need to make “x” $.”  “It only takes one buyer. Besides, we need to leave room for negotiations.”

79 Mission

In helping Sellers prepare their property for market, develop dialogue for the following scenarios:  Seller wants 2-3 months to prepare  Home is cluttered and has a pet odor  Seller is a throw-back from the 60’s and his place reflects the same era

80 Mission Develop a Marketing Strategy for the following scenarios:  We are private people & don’t want our neighbors to know.  I know a lot of agents; please do not put it in to the MLS.  I don’t want any sign on my property.

81 Mission

Develop dialogue or a marketing strategy that helps Seller deal with:  A messy tenant  Tenant who will be moving out in 3 months  Tenant who only wants to allow 2 showings a week and 2 open houses per month