•Appraisal vs. CMA: - ✔✔ appraisals only done by licensed appraisers; CMA by a listing agent; real estate licensees and CMAs should not use the
... [Show More] term "appraisal."
•Many kinds of value - ✔✔ ; market value is the one mainly sought in appraisals and CMAs.
•Market value: - ✔✔ highest buyer will pay and seller will accept under normal market conditions.
•Real estate value derives from - ✔✔ : anticipation, assemblage, change, conformity, competition, contribution, diminishing return, highest and best use, progression and regression, substitution, supply and demand.
•Three appraisal approaches to value: - ✔✔ cost, income, sales comparison; sales comparison usually deemed most reliable; CMA is based on sales comparison approach.
•Factors in home value: - ✔✔ location, property condition, improvements, supply and demand, financing trends.
•Steps in a CMA: - ✔✔ collect and analyze property and neighborhood data; choose comparable properties; value and adjust comparable differences; estimate subject selling price.
•Prospecting approaches to obtaining listings: - ✔✔ farming, direct mail, expired listings, newspapers, referrals.
•Internet sources of listing business: - ✔✔ create your own professionally designed website; provide tips and useful information; promote your accomplishments.
•Listing presentations: - ✔✔ research property; do CMA; prepare listing manual; carry all forms; prepare estimated seller proceeds.
• - ✔✔ must be under broker supervision; must include firm name and phone number; must indicate that advertiser is in real estate business; must have written authorization to place for-sale sign on property; must be free of misrepresentations, untruths, false promises, discriminatory statements; web advertising must give name and phone number of the listing firm.
• - ✔✔ Criteria for valid contract: competent parties, mutual consent, valuable consideration, legal purpose, voluntary act in good faith.
• - ✔✔ Statute of Frauds requires written contract for: exclusive right to sell, exclusive agency, exclusive right to represent buyer, lease over one year, purchase contract.
• - ✔✔ Contract status: unenforceable-- court will not compel performance; void-- not valid; voidable-- valid, but a party can disaffirm and make void.
• - ✔✔ Offers terminate in: revocation, rejection, expiration, counteroffer (new offer), or acceptance (becomes a contract).
• - ✔✔ Offer: a promise or proposal; counteroffer: replacement of an offer with another offer; no contract unless all parties recognize, agree, and acknowledge.
• - ✔✔ Offers are revocable at any time until accepted; acceptance occurs when acceptance is communicated to offeror; proof of acceptance is return of signed document.
• - ✔✔ Counteroffers are properly made by addendum to the offer or initialed changes to contract with original still visible.
• - ✔✔ Contracts terminate by way of: performance, (in)feasibility, mutual agreement, rescission, revocation, abandonment, expiration, (in)validity.
• - ✔✔ Defaults and breaches: parties cannot or will not perform; may allow parties to terminate and take legal action.
• - ✔✔ Legal remedies for default include suit for: specific performance (fulfill promises); rescission; damages; forfeiture.
• - ✔✔ Unauthorized practice of law: licensee usurps attorney's right to make contracts and give legal advice; Tennessee Attorney General will prosecute; use of standardized forms allowed and encouraged to avoid unauthorized practice.
• - ✔✔ TREC does not require specific forms; does require disclosures-- agency, property condition, lead-based paint.
• - ✔✔ Licensee must furnish signed copies of all contracts to all parties at time of execution.
• - ✔✔ A listing agreement is an agency agreement; for validity, must be written, have a termination date, specify a price.
• - ✔✔ The client may be buyer, seller, landlord or tenant; other principal is the broker.
• - ✔✔ Listing agreement imposes statutory agency duties on the agent; creates a limited agency; exceeding scope of authority may lead to forfeit of compensation.
• - ✔✔ Three main types of owner listing: exclusive right to sell, exclusive agency, open.
• - ✔✔ Exclusive right to sell: anyone may sell, listing agent gets paid.
• - ✔✔ Exclusive agency: owner may sell; if anyone else sells, listing agent gets paid.
• - ✔✔ Open: anyone may sell; only procuring cause gets paid.
• - ✔✔ Net listings are illegal in Tennessee.
• - ✔✔ A buyer agency agreement is an agency agreement, subject to the same agency rules and consisting of same types as owner listing.
• - ✔✔ Transaction/facilitator agreements are not agency agreements.
• - ✔✔ Listing agreements terminate by reason of: performance; infeasibility; mutual agreement; revocation; abandonment; breach; expiration; invalidity; death; destruction of property. [Show Less]