CLP CLP Seller Counseling & Listing Management 2 — Questions and Answers
Question 1: A listing expires without a sale. When contacting the seller about relisting, which is the most important first step?
- Immediately reduce the price by 10%
- Conduct a candid post-mortem review of pricing, condition, and marketing strategy (Correct answer)
- Re-enter the listing at the same price with new photos
- Transfer the listing to a different MLS
Correct answer: Conduct a candid post-mortem review of pricing, condition, and marketing strategy
Before relisting an expired property, the agent should conduct an honest review of what prevented the sale—typically price, condition, or marketing—to avoid repeating the same mistakes.
Question 2: Which clause in a listing agreement gives the listing broker the right to a commission if the property sells to a buyer the broker introduced, even after the listing expires?
- Automatic renewal clause
- Safety/protection clause (extender clause) (Correct answer)
- Exclusive right to sell clause
- Net listing clause
Correct answer: Safety/protection clause (extender clause)
The safety or protection clause protects the broker's commission for a defined period after listing expiration if the property sells to a buyer the broker procured during the listing term.
Question 3: A seller wants to accept an offer contingent on the buyers selling their current home. The listing agent should advise the seller that this contingency:
- Has no risk and should always be accepted
- Creates uncertainty about the closing date and may require a kick-out clause for protection (Correct answer)
- Automatically converts to a cash offer if the buyer's home doesn't sell
- Is illegal in most U.S. states
Correct answer: Creates uncertainty about the closing date and may require a kick-out clause for protection
A home sale contingency introduces timing uncertainty, and the listing agent should advise including a kick-out clause allowing the seller to continue marketing and accept better offers.
Question 4: During a showing, a listing agent representing only the seller is asked by an unrepresented buyer for advice on how much to offer. The agent should:
- Provide a suggested offer price based on comparable sales
- Explain their role as the seller's agent and recommend the buyer seek independent representation (Correct answer)
- Refuse to speak to the buyer entirely
- Negotiate on behalf of both parties to speed up the transaction
Correct answer: Explain their role as the seller's agent and recommend the buyer seek independent representation
A listing agent representing only the seller must clarify their agency role and recommend unrepresented buyers seek their own representation to avoid inadvertently creating dual agency.
Question 5: When reviewing multiple offers with a seller, which practice best upholds the listing agent's fiduciary duty?
- Present only the highest-priced offer to simplify the decision
- Withhold offers that include buyer agent commission requests
- Present all offers fairly and objectively with a side-by-side comparison of terms (Correct answer)
- Accept the first offer received to avoid fair housing concerns
Correct answer: Present all offers fairly and objectively with a side-by-side comparison of terms
The fiduciary duty of disclosure requires the listing agent to present all legitimate offers to the seller with an objective comparison so the seller can make a fully informed decision.
Question 6: A price reduction is needed after 30 days on the market with no offers. The listing agent's most effective approach to communicating this to the seller is to:
- Send a brief text suggesting a lower price
- Share updated market data and showing feedback to build a data-based case for adjustment (Correct answer)
- Tell the seller their home is overpriced compared to all competition
- Wait for the seller to bring up the price reduction first
Correct answer: Share updated market data and showing feedback to build a data-based case for adjustment
Using showing feedback and updated market data to objectively demonstrate the need for a price adjustment is more persuasive and professional than subjective assertions.
CLP CLP Seller Counseling & Listing Management 2
A listing expires without a sale.
When contacting the seller about relisting, which is the most important first step?