Reference no: EM131723776

Book : California Real Estate Practice [Third Edition] By Robert L. Herd and Bruce A. Southstone

Chapter 9 : Preparing For The Listing Appointment

Class Discussion Topics

1.  Prepare a CMA for the property where you currently live and present it to another student who is acting as the owner. Explain how you arrived at your recommended list price and market value range.

2.  Prepare an Estimated Seller’s Proceeds Form for the property where you currently live or a fictitious one using the following information:
•     $500,000 sale price.
•     $220,000 existing loan at 6 percent interest per annum will be paid off.
•     Seller will carry back a new $50,000 second loan at 8 percent.
•     Seller will pay a 6 percent commission. (For this exercise, do not prorate taxes, insurance, HOA dues, or loan interest.)

3.  Prepare the “About My Company” section of the listing presentation manual. Be prepared to role-play a discussion about it in class with another student acting as an owner.

Chapter 9 Quiz

1. A CMA is best described in which of the following ways?
a. The comparative mortgage analysis.
b. A formal appraisal.
c. A reflection of the realities of the marketplace.
d. A way to set the selling price.

2. A CMA should only be used to evaluate which of the following properties?
a. Single-family and one- to four-unit residential properties.
b. Commercial and residential income property.
c. Vacant land.
d. Industrial properties.

3. Which of the following is the most accurate data on a CMA?
a. Withdrawn listings.
b. The oldest sales.
c. Properties that are very different from the one being analyzed.
d. Closed escrows under thirty days old.

4. Which of the following is the most important factor to consider when deciding on a competitive asking price for a home?
a. Selling prices of comparable properties that have been sold recently.
b. List prices of properties that are currently for sale.
c. List prices of properties that have expired within the past three months.
d. Selling prices of comparable properties that have been sold in the past one year.

5. A seller must understand which of the following?
a. The higher the price of the home over market value, the sooner it will sell.
b. The higher the price of the home over market value, the greater the chance it will sell quickly.
c. Marketing takes at least three months to get going.
d. The first thirty days on the market are the most important.

6. What should an owner do if she needs to sell a property quickly?
a. Always price above the market.
b. Sell the property in “as is” condition.
c. Make the property available by appointment only.
d. Price the property just below fair market value.

7. What does the check from the escrow company to the seller at the close of escrow include?
a. The sales price minus the loan.
b. The profit.
c. The seller’s proceeds.
d. The net loan amount.

8. Your listing presentation book is
a. to be used to confirm a licensee’s CMA on the subject property.
b. only to be used in conjunction with the listing agreement.
c. an appraisal.
d. a sales tool for the listing broker, licensee, and seller.

9. Which of the following sections of your listing presentation manual builds the owners’ confidence in you the most?
a. “About Me”
b. “What My Clients Say About Me”
c. “About My Company”
d. “Value Conclusions”

10. Which of the following should the “Value Conclusions” section of your CMA do?
a. Give the owners a low and high value range.
b. State the exact value.
c. Overestimate the value to ensure you get the listing.
d. Value the property a little low to ensure it will sell.