REAL 2.2.3: Seller's Agents Responsibilities and Negotiation Strategies

An exaggeration of Michele's ability to sell the property

"In this market, I can sell this house in two days!" Michele said to her seller client. What does this type of statement likely represent?

De-Personalize

"The more a home can look like a model home, the better"

Open House Steps

* Schedule a day and timeframe * Advertise * Get the property ready * Put Signs around the neighborhood * Visitor log * Information packets set out * Lock up

newspapers and internet advertisements

Advertisements must follow state and federal laws and include necessary elements, such as licensee designation and contact information

counter-offers

Although risky, what is a great option for sellers who've received an offer with some terms that the seller finds acceptable and some that are unacceptable?

sharing any information with neighbors, or friends that could harm their position

Always caution both sellers and buyers against ___

open house

An ___ is usually scheduled when the property initially hits the market

He must get the seller's permission to place the lockbox

Gary is preparing to place a lockbox on the property that his brokerage has recently listed. Which of the following is true?

valuables

Homeowners should place ___ in a secure location or move them to a safety deposit box during showings

large estate or complicated property

If an agent is selling a ____, they should plan on being present for all showings

go outside or stay put in one location

If sellers must be home during a showing, they should ___

Pricing at or just below market value

In a hot market, what pricing strategy may incite bidding wars?

Pricing below market value

In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers?

compromise

In any market (neutral, hot, or cold), both parties will likely have to ___

1. Newspaper ads 2. Internet, social media 3. Flyers 4. For sale 5. MLS

In what five ways can agents market their listings?

highest wattage

When staging, The ___ bulbs that are safe for the fixtures should be used

multiple-offer scenarios

Countering full-price offers is more common in ___

Have buyers submit their "highest and best" offers and then help his seller decide which offer is most appealing

Dan just listed a property two days ago and already has offers pouring in. It's a hot market and properties are moving quickly. Which of these options is the best strategy?

Imagine themselves in the home

De-personalizing a home allows buyers to _______

interrupt a showing

Encourage sellers to stay away from home a little longer than they think is necessary, just to make sure they don't ___

• Accept • Reject • Counter

Faced with a counter-offer, a buyer has the same options the seller had with the original offer ___

Suggest that he accept a lower offer, even if it means a reduced commission for you

Jonathan wants to move to Las Vegas as soon as possible to start a new career as a blackjack dealer. He wants to sell his house immediately. What should you do as his listing agent?

For sale signs

Licensees must receive permission to place these signs (usually in the listing agreement)

through the lockbox

Other agents access the key ___ to show the property to their clients

Advertising by Listing on the MLS

Other licensees will see the listing on the MLS when looking for properties to show their clients

• Last-minute showings • No shows • Late shows

Setback Events That Could Happen During Showings

• Walkways are cleaned • trash bins are stowed away • lawn is mowed, edged, and weed-free • front door is free of marks • the lock and latch work efficiently and arefree from paint and scratches • The porch light works • the mailbox should be or look new

Signs of good Curb Appeal

• guns • prescription medication • Other valuables (expensive artwork, jewelry, etc.)

The most important personal items to stow away are ___

both parties are in agreement on all terms

The negotiation phase continues until __

a tenant

The only significant showing notice that should be necessary is when the seller must give ample notice to ___

making sure you're working with an informed seller—both in terms of why a specific list range is recommended, and how quickly (or slowly) the current market is moving

The remedy for a client thinking that you're Selling a Property Too Quickly or Too Slowly is ____

Flyers

These contain information about the property, including price and features. These can be attached to the for sale sign or placed in an obvious spot inside the home

Lockboxes

These contain keys to the property. Licensees must receive permission to place this on the property (usually in the listing agreement)

• De-clutter (and clean) • De-personalize • Accessorize • Repair

What four things must sellers do to prepare their home for the market?

It's no longer in play

What happens to an initial offer from the buyer after a seller counters?

Help the seller remember the goal of a closed transaction

What strategy can a licensee use when a seller client is presented with reasonable offers, but refuses to budge on price or terms?

"I base my commission on my services. These are the services I'll provide for you [list them]. Which ones would you like to forego?"

What the best way to respond to your seller Trying to Talk You Down on Your Commission?

Disclosure

What's one of the most important duties sellers have when offering their property for sale?

To make it easier for prospective buyers to visualize themselves in the home

What's the purpose of advising sellers to remove personal effects from their homes prior to showings?

1. Give away 2. Throw away 3. Stow away

When Decluttering, Some organizing experts recommend labeling three boxes:

present for showings

When sellers are ___, the buyer and their agent can't view a house comfortably and will hurry up and move on to the next one

Visitor log

a security measure that could also lead to new clients

24-hour notice to show

a seller with a ___ stipulation often cuts out a good chunk of the buying market

charcoal briquettes

absorbs pet odor

Pets

it may be best to have _____ removed from the home during the listing period

full-price

it's bad form to counter on price when you've received a ___ offer

another agent

it's usually not necessary or wise for the listing agent to be at the showing when ____ is showing a buyer around

* Closing date * Earnest money deposit amount * Date of deposit * Amount financed or type of financing * Inspection period length * sales contingency in which the buyer has to sell his current home before moving forward with the purchase

legitimate reasons to counter-offer

several days

one simple solution is to remove/deodorize pet odor is to open up a bag of charcoal briquettes lengthwise for ___

a buyer makes an offer

phases of negotiation duties kicks in when ___

inspection contingency

sellers who want to bypass this waiting period are asking buyers to make offers that waive the ___

anomalies

the instances where the seller asked for the a very high price and got it

Showings Essentials

• Lockboxes • Secure belongings

negotiation duties

• Meet with the buyer's agent to receive the offer, or receive the offer by fax, email, etc. • Review the offer with your seller and explain any special requests or requirements • Prepare a seller's net sheet based on the current offer • Assist the seller with a response, including a counter-offer, if appropriate • Present any acceptance or counter-offer to the prospective buyer's representative • Repeat this process until all parties reach an agreement • Manage the process throughout

Common Issues When Representing Sellers

• Trying to Talk You Down on Your Commission • Pricing a Home Competitively for the Current Market • Selling a Property Too Quickly or Too Slowly • Stonewalling