Chapter 8
Market Operations

Sales Contracts

*   Identification of the parties

*   Seller should also include some provision for significant other if appropriate

*   Full legal names required

*   Property description

*   Real property

*   Personal property

*   Earnest money amount

*   Sales price and terms

*   Contingencies

*   Settlement date

*   Settlement expenses

Presentation of Contracts

*   Earnest money amount and form

*   Failure to accept offer is "buying your home back"

*   Two room technique when more complicated negotiation is required.

Offers

*   Timing of offers

*   Mail

*   Counteroffer--initialing changes

Cooperating with Other Brokers

*   Showing properties, key policies

*   Presentation of offers

*   MLS

Buyer Agency

*   Represents buyer

*   Often compensated by seller

*   Compensation by seller creates risk of dual agency.

*   Buyer’s Brokers

Settlement

*   Seller

*   Buyer--form of remaining money due

*   Reducing defaults

*   Pre-qualifying

*   Large earnest money deposits

*   Staged additional deposits prior to closing

*   Closely monitoring pre-closing activities--use of tickler calendar

*   Reporting requirements for IRS

*   Uniform Settlement Statement (see pp. 194-195)

Franchising

*   Began in 1970's--a few large firms dominate

*   Advantages

*   Production of ad materials

*   Name recognition

*   Projection of professional image

*   Referral and training services

*   Management training

*   Disadvantages

*   Initial cost

*   Higher operating costs

*   Possible interference