section 16 unit 4: The Listing Presentation
The buyer could cancel the transaction (if an appraisal contingency is part of the agreement). a. option b. not an option
a. option
Show comparables used to derive the seller's property value. a. do b. dont
a. do
Disparage agents who provided a higher value range. a. do b. dont
b. dont
Different clients of Keira's were pre-approved for a $100,000 loan. After weeks of looking, they found the perfect starter home and made an offer of $80,000. The sellers agreed to this price. A short time later, the lender had an appraisal done which came back with a value of $60,000. For what amount will the lender approve the loan?
$60,000
Suppose Keira's clients want to challenge the appraisal. This is a first for Keira, so she asks her colleagues for advice and eventually comes across this resource that offers advice from a real appraiser. What are some dos and don'ts Keira should keep in mind when putting together the challenge? Write her thoughts down in a logical manner. a. do b. dont
a. do
This isn't Keira's first meeting with the Kowalskis. Identify the benefits and drawbacks of Keira's two-meeting approach to winning a listing. 1) It takes more time. 2) It provides more accurate information for the CMA. 3) It puts her in front of the sellers multiple times. a. benefits b. drawback
1) drawback 2) benefit 3) benefit While the two-meeting approach may take more time, Keira feels the benefits of more accurate information for the CMA and more face time with the sellers far outweigh this drawback.
You never want to walk into a listing presentation empty-handed. This gives sellers the sense that you're unprepared. What items does Keira typically bring to a listing presentation?
CMA MLS listing sheets for comparable properties marketing plan listing contracts
Licensee Keira worked with a couple who were pre-approved for a loan up to $100,000 but found just what they were looking for at a price of $60,000 (which the sellers happily accepted). The appraiser, however, valued the cottage at $80,000. For what amount will the lender approve a loan? a. $60,000 b. $80,000 c. $100,000
a. $60,000 Although the cottage appraised for more than the sales price, the lender would approve the loan for the lesser of the two. In this case, the sales price.
Regional Bank is sitting on some cash. The bank would like to lend this money to consumers so it can earn income on this cash. What action might Regional Bank take to entice borrowers?
decrease interest rates
An agent is working with seller clients who are very emotionally attached to their home. They want to list the property at $330,000, but the CMA indicates a price range of $255,000 to $275,000. What is the best course of action? a. Explain the importance of fair market value and offer to walk them through the process. b. List the home for $300,000 because it's a good compromise. c. List the home to sell, so start with the lower end of the CMA. d. Start with listing for $330,000 and see if you get any interest.
a. Explain the importance of fair market value and offer to walk them through the process.
So what exactly happens if a property is overpriced? Identify the three possible results of overpricing a property. a. Languishes on the market b. misses the market c. sells fast d. Thrives on the market e. brings in lowball offers f. Brings in offers for full asking price
a. Languishes on the market b. misses the market e. brings in lowball offers
seller questions Have you done any recent upgrades? a. ask b. dont ask
a. ask
seller questions What can you tell me about the property? a. ask b. dont ask
a. ask
seller questions What do you owe on the property? a. ask b. dont ask
a. ask
seller questions Why do you want to sell? a. ask b. dont ask
a. ask
Keep the rebuttal professional and free of emotions. a. do b. dont
a. do
Provide examples of additional comparable properties. a. do b. dont
a. do
Provide specific support for her claim. a. do b. dont
a. do
Show properties priced too high that did not sell. a. do b. dont
a. do
Sellers motivated to move quickly a. lower prices b. higher prices
a. lower prices
Shaky consumer confidence a. lower prices b. higher prices
a. lower prices
Supply outweighs demand a. lower prices b. higher prices
a. lower prices
The agent could challenge the appraisal. a. option b. not an option
a. option
The buyer and seller could meet in the middle. a. option b. not an option
a. option
The buyer could increase the down payment to make up the difference. a. option b. not an option
a. option
The sellers could reduce the sales price. a. option b. not an option
a. option
When pricing a home for the market, try to get sellers to ______. a. put themselves in the buyer's shoes b. See how much it might be able to fetch on the market c. Set the price at one level, with the expectation of lowering it in 30 days d. Visit the neighbors and come up with a price
a. put themselves in the buyer's shoes
A home enters the market priced above fair market value. Within the same time frame, three additional homes enter the market listed between 5% and 10% less than the first home, at a fair market price. What is likely to happen with the first home? a. Buyers will recognize the higher price point and immediately submit much lower offers. b. If a property is overpriced from the beginning, buyers will move on and likely make a purchasing decision before the price is corrected on the overpriced home. c. The backload of buyers on the market will wait to see if the price is adjusted on the first home. d. The chances are high there are one or two buyers in the backload of buyers who are willing to make an offer at the entry price.
b. If a property is overpriced from the beginning, buyers will move on and likely make a purchasing decision before the price is corrected on the overpriced home.
What's the best strategy for pricing a home? a. Always go with what the seller thinks it's worth—the customer is always right. b. Prepare a detailed comparative market analysis and base the price on recent comparable sales. c. Price it higher than market value so buyers think it has more to offer and will schedule a showing. d. Price it lower than market value so that there are lots of offers and a bidding war.
b. Prepare a detailed comparative market analysis and base the price on recent comparable sales.
Write a very lengthy, detailed rebuttal. a. do b. dont
b. dont
Change the value you determined. a. do b. dont
b. dont Provide support for the value range you determined. Don't change your value just to win the listing and don't speak poorly of other agents.
seller questions Where did you come up with that number? The property isn't worth that. a. ask b. dont ask
b. dont ask
Demand outweighs supply a. lower prices b. higher prices
b. higher prices
High consumer confidence a. lower prices b. higher prices
b. higher prices
What are some ways you can make sure you're pricing a property at fair market value? a. Ask the sellers what the sales price should be. b. list to sell as fast as possible c. Prepare a well-researched CMA. d. Price it at the price the house originally sold for to be fair.
c. Prepare a well-researched CMA.
Claire, a seller, accepted an offer on her home. However, it just appraised for less than the sales price. What will happen now? a. Claire must refund the buyers for the cost of the appraisal. b. Claire must take her house off the market c. the appraiser must perform a second appraisal d. The lender will only approve a loan based on the property's appraised value
d. The lender will only approve a loan based on the property's appraised value
Lower taxes ______________ buying power, supporting___________________ home prices. Higher taxes __________________ buying power, supporting __________________ home prices
increase higher decrease lower
what's always a factor with every listing presentation?
price Sellers always want the highest possible price, which may not always match its actual market value. Be prepared for this when you head into the presentation.
So, what's the best strategy for properly pricing a property?
price at market value