1. What are the three types of listing agreements that a seller can sign with a real

estate agent? Explain the advantages and disadvantages of each type.

Answer: The three types of listing agreements are exclusive right to sell, exclusive

agency, and open listing. An exclusive right to sell agreement gives the agent the

sole right to market and sell the property, and the agent earns a commission

regardless of who brings the buyer. This type of agreement provides the most

incentive and protection for the agent, but it may limit the seller's options and

flexibility. An exclusive agency agreement gives the agent the exclusive right to

market and sell the property, but the agent does not earn a commission if the seller

finds a buyer on their own. This type of agreement provides some incentive for the

agent, but it also allows the seller to save money if they can sell the property

themselves. An open listing agreement allows the seller to list the property with

multiple agents, and only the agent who brings the buyer earns a commission. This

type of agreement provides the least incentive and protection for the agent, but it

gives the seller the most options and control over the sale.

2. What are some of the factors that affect the market value of a property? How can

an agent estimate the market value of a property using comparative market

analysis (CMA)?

Answer: Some of the factors that affect the market value of a property are location,

condition, size, features, amenities, supply and demand, economic conditions, and

buyer preferences. An agent can estimate the market value of a property using

comparative market analysis (CMA) by finding similar properties that have recently

sold, are currently on the market, or have expired from the market in the same area

as the subject property. The agent then adjusts the prices of these comparable

properties based on differences in characteristics, such as age, square footage,

number of bedrooms and bathrooms, lot size, upgrades, etc. The adjusted prices of

these comparable properties provide a range of values for the subject property.

3. What are some of the legal documents that are involved in a real estate

transaction? What are their purposes and when are they signed?

Answer: Some of the legal documents that are involved in a real estate transaction

are purchase agreement, disclosure forms, title report, appraisal report, loan

documents, closing statement, deed, and bill of sale. The purchase agreement is a

contract between the buyer and seller that outlines the terms and conditions of the

sale, such as price, earnest money deposit, contingencies, closing date, etc. The

purchase agreement is usually signed by both parties when an offer is accepted.

Disclosure forms are documents that disclose any material facts or defects about

the property that may affect its value or desirability, such as environmental hazards,

structural issues, zoning violations, etc. Disclosure forms are usually provided by