Listing Agreement

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Cathy Costner

Group Member

Jan 6, 2009 6:21:13 AM

5.0 out of 5 (rated by 1 member)

I have been licensed for 2 years but actually have done very few transactions. My background is in accounting and I like the Consulting Business Model. I do analyse things a good bit.

I have always wondered why we have to put a list price for the house in the listing agreement right up front. Especially when working under the counsulting model where all services are selected.

In order to come up with the amount to list the property for you have to do a CMA and know what the sellers reasons for selling are. You are doing work for free up front. It seems like a better way would be have a contract to perform specific services first and then if you will be listing the house, the listing agreement would then be completed. I know part of the problem is that the paperwork is still based on the traditional ways.

My question is how do you deal with the Listing Agreement when using the Consultant Model?

JudiB

Guest

Jan 13, 2009 4:36:40 PM

5.0 out of 5 (rated by 1 member)

Cathy,

I have NEVER put a list price (as well as some other items) on a listing agreement until the seller and I have done our respective due-diligences. We begin by discussing my marketing plan and servicing as well as their particular needs. I provide buyers and sellers alike with a "Needs Analysis" to determine some of their priorities and expectatioins. I also explain to them how I work as a Consultant...including what options I have to offer. Based on their understanding of how I work, and my understanding of their expectations, we decide whether or not we want to partner toward that common goal. If we decide to move forward, we review the comps, their direct and broader competition, current market conditions, absorption rates, their specific motivation, etc.,, and only after that do we discuss pricel I've never understood how anyone could recommend a price to a seller without that due diligence.

HTH...

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