Chapter 7
Listing Policy

Company Listing Policies

*†† Use of standard form

*†† Use of standardized listing presentations

*†† Acceptable modifications to contract

*†† Pricing the listing

*†† Use of listing types other than exclusive right of sale

*†† Duration of listings

Composition of Listing Contract

*†† Legal description

*†† Legal name(s) of the owner(s)

*†† How broker's compensation is calculated and paid

*†† Property information

Composition of Listing Contract (Continued)

*†† Duties of the broker

*†† Advertising

*†† Open houses

*†† Activity reports

*†† Duties of the owner

*†† Allowing reasonable access

*†† Cleanliness

*†† Referral of contacts

Composition of Listing Contract (Continued)

*†† Terms under which the broker markets property

*†† Sales price

*†† Owner financing

*†† Expiration date

*†† Type of listing

*†† Open

*†† Exclusive agency

*†† Exclusive right to sale

*†† Net

*†† Flat

Listing Policy

*†† Objectives of listing policy

*†† Consistency and efficiency of handling listings within the firm

*†† Procurement of "good" listings

*†† Ethical and legal issues

*†† Contact with competition's sellers should be only through the listing broker

*†† Should not solicit property already under exclusive contract

Policy Should Spell Out:

*†† What kind of listings may be accepted and under what conditions

*†† Open--short term, one-two days

*†† Exclusive agency--less than one month

*†† Minimum (and maximum?) commission rates which may be accepted

*†† Special conditions requiring prior management approval

*†† Out of market properties

*†† Different property types than the firm normally handles

Signs

*†† Must comply with local laws

*†† Posting on property requires permission

*†† Importance of signs, especially sold signs as marketing tools for the firm

Commission Rates

*†† Market driven

*†† FSO

*†† Sliding scale fees

*†† Incentive bonus fees

*†† Flat fees

*†† Advance fees

Dissolving the Listing

*†† At ownerís request

*†† Poor performance

*†† Compensation for expenses

*†† Waiving compensation to create good will

*†† At brokerís request

*†† Ownerís failure to cooperate

*†† Overpriced listings