files.transtutors.com · Web viewThe sale of property (real estate) is an endless cycle of list – sale – list – sale. Today’s buyer is tomorrow’s seller. It is understanding,

CPPDSM4012A List property for sale Page 1

Learner Manual – CPPDSM4012AList property for sale

Version 1 Validation date 09/01/16 Approved Review© MRT Training RTO XXXXX CPPDSM4012A T Rowe January 2017


LEARNING OUTCOMES

At the completion of this unit students should be able to: Define a prospecting area Prospect for listings Planning a listing presentation Effectively delivering a listing presentation Complete the listing process Recording and acting on client’s instructions

MRT Training Pty Ltd is a Registered Training Organisation (RTO # XXXXXX), registered to deliver accredited training from the Property Services Training Package CPP07 and management programs from the Business Services Package BSB07.

MRT Training provides the training to obtain:

• Certificate of Registration• Real Estate Agents Licence• Continuing Professional Development *

* Different conditions apply in each jurisdiction for CPD

© This publication is copyright to MRT Training. Apart from fair dealing for the purpose of private study, research, criticism or review as permitted under the Copyright Act, 1968, no part may be reproduced without written permission.

Whilst every precaution has been taken to supply complete and accurate information, MRT Training and its partners assume no responsibility for any liability, loss or damage caused or alleged to be caused directly or indirectly by the instructions contained in or accompanying this publication. All parties need to make their own enquiries as to the suitability of the material in relation to their use.



ContentsLEARNING OUTCOMES......................................................................................................................2

CPPDSM4012A - List property for sale...................................................................................................6

Prerequisites..........................................................................................................................................6

About this Learner Manual...................................................................................................................7

Completing activities........................................................................................................................7

Activities linked to competency.......................................................................................................7

EMPLOYABILITY SKILLS..........................................................................................................................8

What to do now....................................................................................................................................8

Introduction...........................................................................................................................................9

1. Obtaining Property Listings................................................................................................................9

1.1 Canvassing for listings..................................................................................................................9

1.2 Choosing a Prospecting area......................................................................................................10

1.3 Ways of Prospecting..................................................................................................................10

1.4 Identify target markets..............................................................................................................11

ACTIVITY 1...................................................................................................................................11

1.5 Expanding Client Base................................................................................................................11

1.6 Prospecting methods.................................................................................................................11

1.7 Developing a business network.................................................................................................12

1.8 Vendor enquiry..........................................................................................................................12

1.9 Recording enquiry......................................................................................................................12

ACTIVITY 2...................................................................................................................................13

1.10 Data Bases...............................................................................................................................13

2. Establishing the Client’s Needs........................................................................................................14

2.1 Establishing rapport...................................................................................................................14

2.2 Establishing and clarifying requirements...................................................................................15

2.2.1 Motivation for listing..........................................................................................................16

ACTIVITY 3...................................................................................................................................16

3. Planning the Listing Presentation....................................................................................................16

3.1 The Client’s Questions...............................................................................................................16

3.1.1 Pre-Listing Kits....................................................................................................................17

3.1.2 Gathering Relevant Information.........................................................................................17


CPPDSM4012A List property for sale Page 43.1.3 State Legislation Relevant to the Listing Presentation........................................................18

3.1.4 Commonwealth Legislation Relevant to the Listing Presentation.......................................18

3.2 The Listing Presentation............................................................................................................19

3.2.1 Elements of the Listing Presentation..................................................................................19

ACTIVITY 4...................................................................................................................................20

3.3 Representations as to Selling Price............................................................................................20

ACTIVITY 5...................................................................................................................................23

3.4 Written Listing Presentations.....................................................................................................23

3.4.1 A Property Appraisal Report...............................................................................................23

3.4.2 Disclaimers..........................................................................................................................24

3.5 Obtaining a Property Listing......................................................................................................24

3.5.1 Provide listing information.................................................................................................24

3.5.2 Agency agreements............................................................................................................24

3.5.3 Prohibitions against sole or exclusive agreements.............................................................26

3.5.4 Contravention to the Act....................................................................................................26

3.5.5 Secure the listing................................................................................................................26

3.5.6 Disclosure of interest and conflicts of Interest...................................................................27

3.5.7 Listing forms.......................................................................................................................28

3.5.8 Tenanted properties...........................................................................................................28

ACTIVITY 7...................................................................................................................................28

ACTIVITY 8...................................................................................................................................28

3.6 Effective communication with the vendor.................................................................................28

Conclusion...........................................................................................................................................29

Appendix – Australian Privacy Principles.............................................................................................30

APP 1 — Open and transparent management of personal information..............................................30

APP 2 — Anonymity and pseudonymity..............................................................................................30

APP 3 — Collection of solicited personal information.........................................................................30

APP 4 — Dealing with unsolicited personal information....................................................................30

APP 6 — Use or disclosure of personal information...........................................................................30

APP 7 — Direct marketing...................................................................................................................30

APP 9 — Adoption, use or disclosure of government related identifiers............................................30

APP 10 — Quality of personal information........................................................................................30

APP 11 — Security of personal information.......................................................................................30


CPPDSM4012A List property for sale Page 5APP 12 — Access to personal information..........................................................................................30

APP 13 — Correction of personal information...................................................................................30

PART A – Activities (copied from within the Learner Manual).........................................................39

ACTIVITY 1...................................................................................................................................39

ACTIVITY 2...................................................................................................................................39

ACTIVITY 3...................................................................................................................................39

ACTIVITY 4...................................................................................................................................39

ACTIVITY 5...................................................................................................................................39

ACTIVITY 7...................................................................................................................................39

ACTIVITY 8...................................................................................................................................39

PART B – QUESTION AND ANSWER.................................................................................................40



CPPDSM4012A - List property for sale

About this unit of competency

This unit of competency specifies the outcomes required to list all types of property and businesses for sale. It includes prospecting for listings, establishing client requirements, planning and delivering property listing presentations, finalising listings for the sale of property, and recording and acting on client instructions. The learning outcomes will enable you, at the completion of the module, to:

Prospect for property listings Establish client requirements Plan property listing presentation Deliver property listing presentation Prepare and execute agency agreement Record and act on instructions

The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities.

PrerequisitesThere are no prerequisites for this unit. The unit specifies outcomes required to appraise the sale price range or rental value of all forms of property for listing in line with client instructions, agency practice and legislative requirements, and how to present that information in a meaningful way.

The unit consists of the following elements and performance criteria. These are the skills and knowledge required to achieve competence in this unit.



About this Learner ManualThis Learner Manual is suitable for a range of learning situations, such as:• Workplace – based learning• Classroom learning• Blended workplace/classroom learning• Self-paced and/or flexible learning.

It is recommended that you read the material and attempt ALL activities, as this will enable you to complete the unit competently and confidently. Completing the activities will gradually build your skills necessary to gain competency in this unit. However, your teacher, trainer or assessor may identify certain activities that will suit your particular learning situation.

Completing activities

Many of the activities throughout this Manual require you to access your organisation’s documents and draw on your own experiences in the workplace or require you to access the Internet. Speak to your trainer/assessor if you are not currently employed in the real estate sector, or do not have access to such documentation or the Internet that you need to complete the activities.

Activities linked to competencyFor most learning situations, teachers and assessors will recommend that learners work through the Learner Guide and attempt all activities. In some situations, teachers and assessors may prescribe specific activities, depending on the learner’s current skills and knowledge.

If you feel the need, ask your teacher/assessor to identify which activities you need to complete to suit your learning situation.



EMPLOYABILITY SKILLSEmployability skills are generic skills that support your ability to perform effectively in the workplace. They are also known as transferable skills because the employability skills you learn in one workplace can be applied and further developed in other workplaces and roles. Employability skills are:• Communication• Teamwork• Problem solving• Initiative and enterprise• Planning and organising• Self-management• Learning• Technology

What to do now

We suggest that you follow the following steps in using this Manual.1. Read the material in this Manual and attempt all activities2. Complete the assignments and case studies that appear at the end of each chapter where applicable3. Speak to your trainer or assessor about how you will be assessed in this unit



IntroductionThe sale of property (real estate) is an endless cycle of list – sale – list – sale.

Today’s buyer is tomorrow’s seller. It is understanding, this simple fact that provides agents with the solution to allow them to become successful in their endeavours, whether they have been in the business for 20 years, or are new and just starting out.

Listing property, however, is just one of the functions of a real estate agent. The secret of success as a real estate agent is having the ability to find out who wants to sell, and then getting the seller (vendor) to employ the agent to “effect the sale”.

Listings do not just walk into the agency off the street (occasionally that will happen, but rarely). So, listings have to be found. Sourcing listings for an agency is the beginning of a process of listing, marketing, selling, settling, and, finally, being paid.

Prospecting for listings effectively, is a very important skill for agents to master. This manual examines how agents prospect for listing and examines in detail the listing process, taking account of the legislation governing the process. The aim of a proper prospecting plan is to be readily able to replace listings that get sold with new listings, so that the agent (and the agency) has a consistent “pipeline” of stock to sell. This guarantees a steady and growing income, no matter what state the market is in.

1. Obtaining Property ListingsIn Australia the average homeowner changes property about once in every 7 to 10 years. The impact of this is that if one considers an average community of 10,000 homes then normally one would expect that about 750 to 1,000 properties would come onto the market and sell in any one-year.

The turnover rate will vary between suburb and suburb, and year to year. For example an area with a very high percentage of Investment properties will see a turnover rate a lot higher than an area of predominantly houses. In boom times property turns over faster than in times of recession. Age demographics can also have an impact. Areas with an aging population will see a higher rate of turnover, as people move out of the city or into nursing homes, than a young population who are just starting out.

An understanding of the demographics of the area is critical for agents who are trying to find property to sell.

1.1 Canvassing for listingsTo be effective, a plan needs to be developed to help the agent locate people who want to sell. One very effective way of doing this is to define geographical area and then to canvass that area to see who wants to sell.

This requires the agent to have a good understanding of their local whole area and, in particular, the defined area within that local area. By doing this the agent should be able to pick a smaller area to concentrate their efforts so that they achieve an efficient use of their time, & they develop a capacity to target people who want to sell.

The intention with this strategy is for the agent to develop a reputation in the community such that the agent will be approached when the person is ready to sell. This strategy is often referred to as “farming” an area. The idea is to build strong relationships with the people, businesses and professionals in the “farming” area. Building a strong client base is essential for the successful agency.


CPPDSM4012A List property for sale Page 10To do this effectively requires that the agent knows and understands the market area they intend to farm.The agent will need to know the demographics of the area. Such details as the: -

• ethnic make-up of the area• age distribution of the population• type of properties contained in the area• owner-occupied v. investment properties ratio• average incomes of the residents,• turnover rate of property• average prices and trending patterns• types of buyers buying in the area

All the above information is readily available from public sources such as the Commonwealth Statistician, local Councils, Australian Property Monitors or RP Data.

1.2 Choosing a Prospecting areaIn order to prospect successfully, agents need to pick an area to prospect. One of the first decisions to be made, is whether the chosen area will be

• A geographically tight area• Or a street-by-street area spread across the Office’s market area so that gives a good distribution of the types of property in the area e.g. freestanding property vs. strata title property.

Just how the farming area is determined will depend on many different factors. The following could be important criteria when making that decision: -

• Types of housing in the area• Style of housing• Types of business• The social, ethnic and cultural make-up of the area• Average prices for the area• The number of agents in the office• The total market area of the office

Once an area is defined, a plan can be drawn up setting out how the agent is going to make and keep contact will all the homeowners in the prospecting area.

The importance of a good prospecting area, and a good prospecting plan, is that it creates numerous social and business contacts that can be relied upon by the agent for many years. Like anything else, nurturing takes time, so salespeople need to invest that time and effort to continuously build those relationships which will both enhance their reputation as local experts & provide that pipeline of listings.

There is a pitfall. Some salespeople become complacent after a period of time and have been achieving reasonable results. They slacken off, in the mistaken belief that they no longer need to farm. But they are mistaken.

The real estate industry is a very competitive one, and there is always someone new who will appear on the horizon and take advantage of someone else’s lack of activity. In real estate, there is always a need to effectively maintain existing relationships and to continually build new ones.

1.3 Ways of ProspectingIn addition to this prime market area agents will have their own circle of contacts (& sphere of influence) that will also form part of the farming area. The aim of the “primary personal market” is to provide an ongoing & important source of listings in the first 12 months in the industry.


CPPDSM4012A List property for sale Page 11Within the defined geographic area an agent will develop the intelligence needed to be aware of everything that is going on within that area. The aim is to become the vendor’s real estate agent before they ever need an agent.

The process of building and expanding a client base consists of seven basic steps: profiling the area to work in setting targets and prospecting plans conducting agency and individual promotional activities prospecting for listings contacting potential clients maintaining a client base creating prospecting reports

1.4 Identify target marketsWhen setting out to establish a specialist area consider the following:

how will targets be set and prospecting plans developed? how many houses are in the allocated farming area? what type of properties are in this area? what type of people live there? E.g. retirees, first homeowners, professionals what factors affect the price of properties in this area?

ACTIVITY 1Using the information from the resources mentioned in the notes you are required to compile a profile of a particular area. Pick an area in a suburb you are familiar with and prepare a profile with the following information: -

1. Identify the demographics of the area including statistics for age, employment and family types2. Identify geographical markets3. Determine possible trends in housing needs4. Formulate a strategy for expanding your client base

1.5 Expanding Client BaseOnce you have identified the target market/s, an agent can then devise a strategy for servicing that area. It may be the agent needs to develop a relationship with a property developer and/or that agent has been asked to market the developer’s new properties.

A developer looking to purchase land, that the agent is selling, may have approached the agent. That agent would need to advise the company of the type of property that would be suitable for the land, and of any restrictions on development by the environmental plans for the area.

Whenever an agent contacts new people, or finds out more information about the properties in that area, the agent needs to update the database – so that information is available to others within that agency.

1.6 Prospecting methodsProspecting for listings include a number of tried and true methods but agents also need to be proactive and come up with new methods that suit particular area and demographic.

Some of the tried and true methods include Telephone canvassing Newsletters


CPPDSM4012A List property for sale Page 12 Door knocking Other agents signs Letterbox drops Speaking at functions Newspaper advertising Editorials Direct mail Testimonials Private ads Sponsorship Everyday opportunities like o going to the hairdressers

o buying a paper at the newsagentso getting coffee from local cafes

All of the above methods have advantages and disadvantages and may not be suitable for your area.

1.7 Developing a business networkIn order to expand a network and to attract new business, an agent needs to be proactive in establishing partnerships and be experts in building networks.

How is it done?One of the most important steps in building business networks is to fully understand what the business of real estate your business is about. That may seem a little easier than it really is, at first thought. Reflect carefully about what the real estate agency actually does, and think where, for example, property management fits into that picture.

Is property management just collecting rents and organising repairs, or does it go further? Does it encompass property acquisition, building property portfolios (both residential and commercial and other income producing properties)? Agents need to be aware of how broad the areas of activity in the property industry can be.

1.8 Vendor enquiryOnce feedback from prospecting activities has been analysed, there needs to be follow-up. If the prospecting has been successful, there may be enquiries from prospective vendors about the property that they own. If this happens, the agent will need to handle the inquiry correctly.

Some of the steps that the agent will need to undertake are: Find out information about the property and its owners View the property to ascertain its condition Look at other properties in the immediate area, take particular note of any similar properties, (pay

particular attention to other properties that may be listed by the agent’s own agency) Gather information about market factors for the area, what are the current interest rates, is the area

affected by unemployment Look at the local planning document and see if there are any significant development applications

affecting the area what is the zoning, is it affected by bushfire, flooding or the like

1.9 Recording enquiryOne of the major complaints that come from clients is that the agency is late or has not followed up with the information that was required. Mistakes are costly to the agency, especially as the agent’s major offering to the client is service.

A diary is the most important aid an agent can have!

Apart from being an excellent time management tool, the diary can be used as evidence in a court of law – keeping notes of conversations is important.



There are a number of diary systems that an agency could use: a day book that records all enquiry and responses, incoming and outgoing calls and staff movements a checklist used to organise and prioritise the workload for the office

Information that should be recorded from a potential vendor could include Name Address Type of property – owner occupied, investment Time frame for selling Reason for selling

ACTIVITY 2Design a checklist to ensure that all the appropriate information is recorded from a potential vendor.

1.10 Data BasesA prospecting database can perform an important function for an effective real estate agent. It would be used to hold relevant information on prospective sellers and their property. It should be current, updated regularly so it can be accessed readily when looking for new listings.

The database should comply with privacy laws and include the following: - Past vendors and purchasers Current vendors and purchasers Tenants Business contacts Selling appraisals where the prospect has not listed or sold.

The database would record at least the following information Name Address Contact information including: -

o Telephone numbers (noting the best contact number)o Email address

How contact was first made Type of property Time frame for selling Reason for selling Other relevant information

The database can be a paper based system (cards, files etc) but the database can be used more effectively if it is maintained electronically. There are many suitable programs about. But to be effective they should allow searching to be done by any of the following: -

Key words Type of property Time frame Geographic location

The program should also allow for mass mailings or have the feature to allow mail merge of data. This way the agent can direct mail straight from the database.



2. Establishing the Client’s NeedsPart of the process of dealing with enquiry from potential vendors is creating and maintaining a quality relationship. Communication is the key to effective and quality transactions with clients (potential as well as actual).

In most cases, the first contact an agent makes with a potential client is either at an Open for Inspection, or the potential client phones the office. Occasionally, the prospect may visit the office first up or is referred to the agent by the property management department.

Whatever the means of contact, it is important from the outset that the agent makes some written record of the contact. So, the use of a standard enquiry form is important as it ensures that the correct information is recorded at the outset. Properly completed, it is the start of what (hopefully) will be a fruitful relationship for both parties.

As well as the obvious details, such as name, address of the property, and contact details, additional information that should be collected would include: -

Has the person dealt with the agency before? Why did they call the agent/agency? How long have they owned the property? Do they live in the property? Do they have a price range in mind? Do they have a time frame they must act in?

The reason for asking the questions is to begin to establish report with the potential vendor and to obtain an appointment with the prospective vendor to conduct an appraisal of their property and also to demonstrate to the potential client the benefits of using that agency and agent.

It should be kept in mind that many prospective vendors will approach more than one agent before they make a choice of whom they will sell with.

2.1 Establishing rapportIn the Learner Manual for CPPDSM4080A Work in the real estate industry learners focused on communication and interpersonal skills that included: -Active listening.

Key points of active listening include: Look at the speaker the whole time Show that you understand what the speaker is saying by interacting with affirmative comments such

as “Oh I see” or “Yes I understand” or “So as I understand what you are saying………………” Maintain eye contact Try to understand the point of view of the speaker (empathy) and give feedback that you do

understand (active listening) Don’t interrupt the speaker or “guess” the problem Ask sensible questions

Verbal and non-verbal communication skillsIt is said that up to 80% of communication between people is “non-verbal” or body language”. To ensure the best outcome is achieved from interactions between people, “open” body language should be used. “Open body language” includes not crossing arms, staying focussed on what the other person is saying, facing the speaker, nodding gestures of approval and understanding, and maintaining good eye contact.


CPPDSM4012A List property for sale Page 15Clarifying information gained To ensure that the agent correctly understands the client’s needs and requirements the agent should summarise the information they are recording back to the client and confirm that it is correct.

Responding to questionsAgents should be prepared for any meeting that they are attending. They should be ready to truthfully answer all questions put to them. If they don’t know the answer they should say so, and then explain that they will use their best endeavours to find out the answer. An agent should never guess the answer. Murphy’s Law dictates that if the answer is guessed, it will be wrong. Nothing creates distrust more than being given the wrong information.

Some important points to keep in mind when attempting to establish a relationship with a vendor are: - Always be on time. If for some reason (even for 1 or 2 minutes) call and let them know. An agent

should never assume their time is more important than the vendor’s Visit at appropriate times Turn the phone off or onto silent Only enter the property when invited If more than one prospective vendor present ensure attention is paid to all Respect the vendor’s customs and property Never smoke in the vendor’s home Find a common link with the owner Do not offer advice unless it can be substantiated Listen to what the prospective vendor(s) has to say Take notes Use diplomacy when discussing politics or religion (better still avoid both subjects) Ask the prospect what they want from the meeting and then deliver it

The aim of the contact is to build rapport and that involves Empathy. Empathy has been described as “listening with your heart as well as your head”. If one listens to another person in a cold “matter of fact” way, it is (mostly, justifiably) seen by the other person as displaying an attitude of “I’m not really interested in what you are saying, I’m just going through the motion of listening”.

If an agent gives the impression of not caring about the other person’s question, concern or issue, “meaningful" communication is not really possible. If a person who wishes to communicate with one is frustrated or exasperated, a lack of empathy on the part of the agent, will lead to more frustration and the breakdown of the relationship.

HINT: Keep the following in mind when doing an appraisal Before entering into a discussion, have an idea of the desired outcome Demonstrate extensive knowledge of the market (based on accurate research) Show empathy for the vendor

Once an agent has discovered the vendor’s wants & needs, these should be confirmed with the vendor and set about demonstrating how the agent will be able to assist the vendor achieve their goals.

2.2 Establishing and clarifying requirementsIn order to be able to handle the appraisal correctly the agent needs to try and ascertain certain information. This information will not be gained through interrogation but more than likely will be revealed during conversations with the prospective vendor.

The information would include: - Why does the vendor wish to sell? Any particular event that caused the decision to sell?


CPPDSM4012A List property for sale Page 16 What experience has the vendor had in selling? When was the last time they sold a property? Why did they call the agent/agency? Does the vendor understand the listing process? Is the vendor working to a schedule? Can the agency help them in a purchase once they have sold? Is the vendor calling in other agents? Is the vendor ready to make a decision? Do they have any special requirements?

2.2.1 Motivation for listingDifferent vendors have different motivations for selling. They also have different preferences. It is important for an agent to establish the vendor’s motivation, as it will help them service the vendor better. Motivation to sell can be for any of the following reasons: -

Moving up or down in the market Financial pressures Divorce or separation Getting married Retirement Needs to cash themselves up Inherited property not required Work induced move Sea-change Already purchased Changing family needs

ACTIVITY 3Design a list of questions that you could use that will help you to discover and then rate the motivation of the vendor. You should remember that sometimes the answer the Vendor may give you will not be the real reason for selling.

3. Planning the Listing PresentationIn order to effectively deliver a listing presentation the agent needs to gather facts, figures and other relevant information together in order to meet the client’s expectations of a knowledgeable agent to deal with. As well the agent must be fully aware of their legal obligations when making representations to the prospective vendor.

3.1 The Client’s QuestionsGenerally speaking, when a person is thinking of selling their property, and they are looking to find agents who will be able to represent them in that transaction. Those vendors are seeking someone who will be able to provide suitably impressive responses to the following questions: -

What functions will the agent perform? What price are they likely to achieve for their property? What marketing will the agent undertake? How much is it going to cost them? What service will the servicing agent supply them?

To meet the potential client needs, the agent must have at their command answers to all these questions. They must also be to present alternatives to some of the issues the client is likely to face, so they can make the decision that best suits their needs.



In most cases, the client is seeking answers to the above questions when the agent first visits the property, so the agent must have done the research and have answers so that they can meet the client’s needs. Caution should be used in these instances about the accuracy of the information that is provided – so that it is able to be justified, if challenged later on.

Many agencies have information packs, known as “pre-listing kits” that they send to the client as a pre-curser to the actual appraisal visit. These kits will have a lot of generic information so that the client can be better prepared for the visit.

3.1.1 Pre-Listing KitsPre-listing kits will contain the following information: -

• An overview of the local market place, including average sale price for houses, town houses, villas and units; the number and value of sales over the last 6 months• Comments on what the market is doing at the present time• Average time it takes to sell property in the present market and the number of properties on the market for sale at the present time in the area• Some hints on how to prepare a home for sale• Something on Agency Agreements & the choices a prospective vendor has for various sale methods• Basic information on marketing and promotion• The agent’s personal profile• The Agency profile• A selection of letters from past clients or a page with comments from past clients• A schedule of the Agency’s standard fees• A comment on why the Agent should be chosen to be their agent• A copy of the OFT guide “AGENCY AGREEMENTS”

The information provided does not need to be voluminous but enough so that an interested seller can prepare themselves for the presentation and be in a position to ask meaningful questions. The Prelisting Kit is basically an information kit. It is a precursor to the Listing Presentation and the actual Listing Kit.

3.1.2 Gathering Relevant InformationThe agent will need to undertake some research so that when they visit the property they can provide the client with relevant information. Having asked questions of the prospect at first contact the agent should be in a position to put together some sale information in regard to the likely selling price range of the property.

While the agent has not yet seen inside the property, they can put together a list of what has recently sold in the area and also what is presently on the market for sale, so that when they visit the property they are armed with the information they need to refer to when discussing the likely selling price with the vendor.

It is important also for the agent to establish who actually owns the property. This will require a search on title, which most information service providers (e.g. RP Data, Red Square, APM etc.) allow. It is important that the agent knows the person they are dealing with is the owner of the property. Agents should keep in mind their responsibilities under the Property, Stock and Business Agents Act, the Trade Practices Act when putting this information together. We will look further at these obligations when we cover the Listing Presentation proper.

The important point to remember is that if the agent has not undertaken proper research before undertaking the Listing Presentation, the risk of breaching one or more of the relevant legislation is increased.

3.1.3 State Legislation Relevant to the Listing PresentationThe Property, Stock and Business Agents Act (the Act) and Regulations regulate what agents can do and say during the Listing Process.



In particular, agents need to be aware of the following parts of the Act: -

Part 3 – General conduct of licensees and Registered personsIn particular: -

• Division 4. Conflicts of Interest• Division 5. Advertisements and representations, and in particular Section 52 Misrepresentation by licensee or registered person• Division 6 – Unjust Conduct by licensees

Part 4 – Agency AgreementsPart 5 – Residential property and rural land salesIn particular Section 74 – Requirement to substantiate selling price estimates – residential propertyThe RegulationsAs well as the requirements of the Act, a lot of the detail on the implementation of the Act is contained in the Regulations. So the Regulations must be read in conjunction with the Act.

The following are the sections of the Regulations that apply to listing and selling property: -Part 2 – Conduct of Agency BusinessIn particular: -Section 10 – Provision of financial and investment adviceSection 11 – Rules of conduct. This section prescribes the Rules that are set out in the Schedules attached to the Regulations and are mandatory for each class of License and certificate.Section 13 – Contents of Agency agreements. This sets out the required clauses for each type of agency agreement.

At the end of the Regulations are Schedules of Rules of Conduct for each class of license and Certificates as well as Schedules specifying the terms that apply to all agency agreements. They are:A. RULES OF CONDUCTSchedules 1 - General conduct rules that apply to all licensees and registered persons.Schedule 2 – Rules specific to real estate agents, real estate salespeople and on-site residential property managers. Part 1 – deals with SalesSchedule 3 – Rules specific to stock and station agents and registered persons they employ. Part 1 – deals with Sales

B. TERMS APPLYING TO AGENCY AGREEMENTSSchedule 7 – Terms applying to all agency agreementsSchedule 8 – Terms specific to agency agreement for sale of residential propertySchedule 10 – Terms specific to agency agreement for sale of rural land

The NSW Fair Trading Act prohibits the use of unfair practices during the Listing Process. These practices are defined in Part 5 of the Act and include:-

• Section 42 - Misleading and Deceptive Conduct• Section 43 - Unconscionable conduct• Section 44 - False and Misleading representations• Section 45 - False representations and misleading or offensive conduct in relation to land.• Section 55 – Harassment and coercion

3.1.4 Commonwealth Legislation Relevant to the Listing PresentationThe Competition & Consumer Act covers the activities during the presentation, in particular: -

• Misleading and deceptive conduct• False representations about land• Representations about the future• Bait advertising• Harassment and coercion



The Privacy Act regulates the collection and use of personal data that agents may collect during the listing and selling process. The 13 Australian Privacy Principles need to be observed when agents are collecting personal data. Those 13 principles are set out as an addendum to this Manual.

3.2 The Listing PresentationGenerally speaking, the Listing Presentation should happen in person. This will involve making an appointment with the prospective vendor at a mutually convenient time, when all the decision makers can be present. The location of the presentation is important too.

While most presentations will be in the home of the prospective vendor they should be carried out in a place with the least amount of distractions. Agents need to be flexible in this regard, prepared to undertake the inspections and presentations after work, on weekends or even on rostered days off. It is important to fit in with the prospective vendor’s schedule. Not to do so is the easiest way to lose a listing.

The key decision makers should always be present at the presentation. This will include all persons who are registered on title. It may also include other family members who have a stake in the property. For example, parents who have lent the registered proprietors money and who want a say on the sale of the property.

3.2.1 Elements of the Listing PresentationThere are several elements that make up the listing presentation.

1. The visual inspection by the agent. The agent will need to inspect the property and note the features of the property that are relevant to establishing its likely selling price and the marketing of the property. Notes should be made about: -

• Number of bedrooms• Number of bathrooms• Parking facilities• The condition of the property• Any work that should be undertaken before placing the property on the market• Location of the property• Fixtures and fittings that will go with the sale• Observations about suggestions to improve saleability of the property• Observations about potential, restrictions to use and other information that could affect value or price achieved.

One of the purposes of the inspection is to gather as much information as possible so that the agent can meaningfully discuss likely price ranges, marketing strategies, and the likely target market.

2. The Market influences likely to affect the sale. This is where an in depth knowledge of the existing market will help the agent in their presentation when discussing listing alternatives and marketing with the potential vendor

3. Likely selling price range. This will involve the agent providing a Likely Sale Price, but also having the information to substantiate how they arrived at the figure they put on the agency agreement.

4. Recommendations on the type of listing Agreement to be entered into. This will involve the agent being able to explain the advantages and disadvantages of each listing method.

5. Marketing Options. This will involve a discussion of the likely target market for the property and producing alternative marketing plans for the vendor to consider. It will cover marketing on the internet, newspapers, brochures, window displays, buyers’ database, signboard, and editorial submissions.


https://www.oaic.gov.au/agencies-and-organisations/guides/app-quick-reference-tool

CPPDSM4012A List property for sale Page 206. The Agent’s obligations to the vendor. The agent needs to be able to discuss with the vendor what functions they are to perform during the sale. In addition, the agents must disclose any conflicts of interest and explain to the vendor their duties to be open and honest with all potential buyers. The issue of disclosing any and all “material fact” should be covered as well.

7. How/when the agent will provide feedback to the vendor. This will determine how often & how the Agent will keep the vendor informed of developments during the marketing of the property.

8. Any other information that is relevant to the listing and sale of the property.

ACTIVITY 4Undertake an analysis of the area you live, and decide what information you would need to collect in order to be able to advise prospective vendors about the issues they need to address if they wish to place their property on the market for sale. In your answer: -

1. List the information you would collect2. List the issues you would discuss with a potential vendor

3.3 Representations as to Selling PriceThe issues of establishing the likely selling price of a property was covered in details in the Leaner Manual for CPPDSM4003A Appraise property. NSW Fair Trading has a set of Guidelines outlining how agents need to be able to substantiate the likely selling price given to the potential vendor. Residential selling agents should be fully conversant with these Guidelines. Each year, hundreds of agencies are investigated for breaching these guidelines and these investigations result in many agents being fined.

One of the largest areas of complaint to NSW Fair Trading is in regard to the opinions agents provide potential vendors and buyers on price. This is a critical factor in the longevity of an agent in the industry – being able to accurately estimate the likely sale price of property. It is not good enough to “wing it”.

There needs to be an established format used in the agency to ensure this is done properly – every time. Substantial penalties can be imposed for agents and agencies who are not able to do this.



Sample template for an ESTIMATE OF SELLING PRICEThe Property Stock and Business Agents Act 2002 requires an agent to advise the vendor of their Estimate of Selling Price when listing a property for sale. Details of the information we have used to arrive at the estimated selling price of your property is in accordance with the Office of Fair Trading current guidelines and is set out below.

VENDOR name/s:ADDRESS of PROPERTY:

MAIN FEATURES: Any features deemed relevant to the value of the property

POSSIBLE FUTURE USES: such as zoning, rights of way, redevelopment, resumption, preservation orders, covenants, restrictions of use, or development approvals etc.

RECENT SALES* relevant to establishing the likely selling price of your property

* These sales are an indication of the market over the last 3/6 months. The list includes sales notified by the Land Titles Office as having settled as well as the sale of other properties we are aware of nearby that have exchanged but not yet settled. It should be noted that this information is not necessarily complete, or include all sales that have taken place during the time period specified. In addition, information from the Land Titles Office is at least 6 to 8 weeks old.

ADDRESS SALE PRICEDATE SOLD COMMENTS



MARKET DEMAND: Set out is a list of comparable properties currently on the market for sale, that have not yet sold.

Prospective buyers generally inspect a wide range of properties, prior to making a decision to purchase. The total number of properties for sale in your suburb. Prospective buyers who view your property will be comparing it to other properties on the market that have not sold. These are the properties we believe you will be competing with if your property is placed on the market for sale.

PROPERTIES FOR SALE ASKING PRICE DATE LISTED COMMENTS



Buyer activity at the present time is STRONGAVERAGEWEAK

EXISTING MARKET CONDITIONS: Seller’s Market: That is there are more buyers than sellers in the market place at the present time. The average property sells within about 3 to 5 weeks.Buyer’s Market: That is there are more sellers than buyers in the market place at the present time. The average property sells within about 9 to 20 weeks.Balanced Market: That is the number of buyers and sellers at the present time are about equal. The average property sells within about 5 to 9 weeks.


CPPDSM4012A List property for sale Page 22SEASONAL FACTORS:

ECONOMIC FACTORS:

OTHER FACTORS we have taken into account in establishing a likely selling price. e.g. Special requirements and/or circumstances of the Vendor; likely movements in interest rates, recent valuations of the property, press reports about the property market, etc.

NOTE: Our “True Estimate of Likely Selling Price” is based on all of the above information. It is possible, and more than likely, that during the marketing of your property, any or all of these factors may change, and this could affect our estimate. Once we receive quality feedback from potential buyers, and it is assessed, then our “True Estimate of likely selling price” could also change. If this happens, we will advise you in writing of the change, and the reasons for it.

Based on all of the above our ESTIMATE of the likely selling price for your property as at ____/____/20____

is $____________________ to $_____________________ .

Agent Name:

Agency:

Agent Signature:

Please Note that under the Property Stock and Business Agents Act if we express an opinion to any buyer about what we believe the property will sell for, then that opinion MUST fall inside the current selling price estimate we have given you. The process of establishing a likely selling price is very subjective and the price the property ultimately sells for could be very different to what we have advised you. The actual sale price will depend on the number and the circumstances of buyers attracted to your property. At all times we will use our best endeavours to obtain the best price we can, and will keep you fully informed of the activity surrounding the marketing of your property and the reaction to it, so that you can make informed decisions about the sale of your property.



ACTIVITY 5Go to NSW Fair Trading’s web site and read the Guidelines on Price Substantiation and Underquoting. Using your own property, or the one you live in prepare an Estimate of Selling Price using a copy of the sample form here. Put as much detail you feel that must be held on file that substantiates your opinion as to the likely selling price range for the property, and that would satisfy Fair Trading current requirements.

3.4 Written Listing PresentationsMany agencies will follow up a listing presentation visit with a formal written presentation to the potential vendor(s). Agents should be aware that if the vendor is ready to “sign up” at the presentation visit, they should proceed to prepare the Listing documentation.

However, many vendors require further time before they will make a commitment, for one reason or another. Preparing a written presentation that sets out all that was covered at the visit, confirms with the client that the agent is professional and serious about obtaining their business. It also gives the agent an opportunity to refine their recommendations about the property. In particular: -

The agents’ view about likely selling price, and the information that the estimate is based on Tailor-made marketing alternatives Some suggested advertising material How the present market could affect the price achieved The listing alternatives A firm quotation about the fees charged on a successful sale Examples of marketing brochures with the results Copies of references from previous happy vendors Undertakings of what the agent will do for the vendor

3.4.1 A Property Appraisal ReportHaving undertaken research to appraise the possible selling price of a property, you now need to report to your prospective vendor and give feedback to them.

While you can give the results of your research verbally, it is most probably more professional to give them a written report. As a guide your report should contain the following: -

1. The Address of the property, including title details (Lot and DP/SP)2. Prospect’s Name3. A description of the property (may or may not include a photo)4. Condition of the property (this may include details of repairs or improvements the owner could make to enhance likely sale price)5. Salient features or aspects6. Negative features or aspects7. General comments8. Current Market conditions9. Comparative or recent sales figures10. Expectation regarding likely selling price11. Details of alternative marketing methods12. Recommendation as to what method to use13. Details of fees and charges14. Agency Services15. Office and personal profile16. Documentation17. Summary including a disclaimer


CPPDSM4012A List property for sale Page 243.4.2 DisclaimersDisclaimers do not in themselves protect the author of information from liability if the information they provide turns out to be false and misleading. However, if you do your research correctly, and word your disclaimer correctly they can provide some benefit if something does happen to go awry.

The disclaimer, when you are giving an appraisal of price, should state that it is an opinion derived from examining recent sales that you believe is relevant to the property, and can only be used as a rough guide to value. The disclaimer should also state that the person should not rely solely on the appraisal you have given them, and they should make their own enquiries to establish the likely sale price of their property. It should also state that the appraisal only relates to the time you made it (it therefore, needs to be dated) and that you reserve the right to change your opinion if any of the information you used, changes or new information becomes available. This is now a legislated requirement under Section 73 and 74 of the PSBA.

The disclaimer should also state that the appraisal is provided to the person it is addressed to and cannot be relied upon or used by any third party.

ACTIVITY 6For the property you used earlier, prepare a written report for the vendor that covers the following:

1. A description of the property setting out its features and benefits.2. Details of the present condition of the property3. Details of any work you consider that is needed to make the property saleable4. Your assessment of the likely selling price of the property if the property was placed on the market at the present time

3.5 Obtaining a Property ListingHaving obtained permission to list the property, the agent must ensure that they follow the procedures laid down in the Act.

3.5.1 Provide listing informationUnder the Property Stock and Business Agents Act 2002, the appointed agent must ensure that the vendor is well informed about the different types of agency agreements and the sale process in general. They also must be aware of all the fees and charges that would apply to the type of agreement and method of sale. There are a number of ‘fact sheets’ prepared by NSW Fair Trading that informs the public of the duties and responsibilities of the agent. One fact sheet that must be given to the vendor prior to signing an agency agreement is:

Agency agreements for the sale of residential property

This fact sheet informs the vendor to ensure that the agent they are dealing is properly qualified, that they get a list of all fees, find out if they have a good knowledge of the area, and if they adhere to a code of ethics.

3.5.2 Agency agreementsAn agency agreement is a document that creates a legally binding contract between the agent and principal.

To be valid it must be signed and contain the prescribed terms and conditions set down in the Property, Stock and Business Agents Act 2002. Under the Act an agent must have a written agency agreement to act on behalf of a principal (vendor/seller or landlord).

An agency is not entitled to any commission or expenses from a person for, or in connection with services for the sale or management of property, unless they have a signed and valid agency agreement. The agreement must contain the prescribed terms and conditions and fully disclose all services to be performed by the agency.



A signed copy of the agreement must be given to the principal within 48 hours of signing. Service of the agreement can be by electronic means, in person or by post.

A tribunal may make the decision to grant part or all of the expenses stated in the agreement despite a failure by the licensee to serve a copy of the relevant agency agreement within 48 hours after it was signed, but only if the oversight was due to misadventure beyond the agent’s control.

If a vendor can show that the agent did not give a copy within the 48-hour period, then the agent can lose their entitlement to both commission and expenses that arise under the agreement. Hence the need to be very familiar with all the provisions related to agency agreements.

PRESCRIBED TERMS OF THE AGENCY AGREEMENT Identification of the property Names of parties to agreement Information identifying parties Principal’s authority to enter into agreement Authorisation for licensee to act on behalf of principal Termination of the agreement Reimbursement of licensee for expenses Details of any rebates, discounts and commissions the agency may receive Remuneration Period of the agreement The agreement must specify the address of the property or contain sufficient description of the

property so that it can be clearly identified

There are several different types of agency agreements for the sale of residential property. It is important that the vendor is aware of the type of agreement prior to signing, because it affects the rights and the amount of commission the vendor will need to pay.

EXCLUSIVE AGENCY AGREEMENTThese agreements give exclusive rights to one agency to sell the property. This entitles the agent to be paid commission if the property is sold during the fixed term of the agreement, even if the vendor, or another agent sells the property. The agency is also entitled to commission if the property later sells to a person who introduced or started negotiating for the property with the original agent. An exclusive agency agreement can be either an agreement to sell by private treaty or to sell by public auction.

SOLE AGENCY AGREEMENTSThis is similar to the exclusive agency agreement. The vendor gives rights to one agency to sell the property but the vendor may find a buyer and not have to pay the commission to the agency.

OPEN AGENCY AGREEMENTThis type of agreement allows for any number of agencies to sell the property including the vendor. The commission is paid to the person who “effects” the sale.

MULTIPLE LISTINGThis occurs when an agency is working as part of a network selling the property. The commission is paid to the agency that signed up the listing. Generally, the listing allows other agents in the service to work to sell the property and the listing agent shares the commission with them.

FIXED TERM OF THE AGREEMENTFor both exclusive and sole agency agreements there is a fixed term for the agreement. During the fixed term the agreement cannot be ended unless by mutual consent. The length of the fixed term is negotiated between the agency and the vendor; there is no maximum or minimum term. The fixed term will depend on the timeframe that the agency believes it will take to sell the property. If the fixed term is longer than 90 days then


CPPDSM4012A List property for sale Page 26the vendor can give 30 days written notice to end the agreement after the 90 days. If the fixed term has less than 30 days left, the vendor can give notice to end the agreement at the end of the fixed term. The fixed term clause does not apply to agreements that involve the construction by the seller of the property on the land.

IMPORTANT - WARNINGUnder the Act exclusive and sole agency agreements must have two mandatory warnings which must be brought to the vendor’s notice. These warnings alert the vendor to the fact that they are signing an exclusive or sole agreement and that they may have to pay the agency commission even if they, or another agency, introduces the buyer. The second warning asks if they have already signed an agreement with another agent and again reminds them that, if they have signed another agreement, they may be liable for the payment of two commissions.

“Important: this is an exclusive/sole agency agreement. This means that you may have to pay the agent commission even if another agent (or you) sell the property or introduce a buyer who later buys the property.”

“Warning: have you signed an agency agreement for the sale of the property with another agent? If you have you may have to pay 2 commissions (if this agreement of the other you have signed is a sole or exclusive agency agreement.”

3.5.3 Prohibitions against sole or exclusive agreementsThe Property Stock and Business Agents Act 2002 makes it an offence for an agent to solicit or encourage a person to enter into an agency agreement when the agent knows that there is another sole or exclusive agreement in existence.

3.5.4 Contravention to the ActThe agency is not entitled to any commission or expenses from the vendor for any services connected with the services offered by the agency if the agreement has been entered into knowing that there was another sole or exclusive agreement in existence.

3.5.5 Secure the listingOnce the agent has completed the listing presentation, the agent will need to ensure that the appropriate paperwork is completed, if the vendor agrees to list the property.

IDENTIFICATION OF PARTIESThe agreement must name each party in full including the licensee. Each person must have their full name e.g. John Smith and Mary Smith. Each party named on the agreement must sign the agreement. The agreement must specify the address of the principal the licensee’s licence number and any business name under which the licensee conducts business.

COOLING OFF PERIODAt this point, the agent needs to explain to the vendor the cooling off period for the agency agreement. The fact sheet and the agreement both have the information about the cooling off period. It states “COOLING-OFF PERIOD: You (the principal) have a cooling-off period for this agreement. If you do not wish to continue with this agreement you can cancel it until 5pm on the next business day or Saturday.”

The vendor can waive this cooling off period but it is essential that the agent gives a copy of the unsigned agreement 24 hours before asking them to sign, and also ensure that a copy of the fact sheet has been provided.


CPPDSM4012A List property for sale Page 27WAIVING COOLING OFF PERIODIf the principal is sure that they wish to go ahead with the agency agreement, they can waive their right to the cooling-off period. The cooling-off period can only be waived if the agent:

Gave a fully completed agreement (no blank spaces) to the principal at least one business day before it is signed

Gave the principal a copy of the prescribed fact sheet The principal must sign the waiver form

EFFECT OF RESCISSIONThe agent cannot charge the principal any fees or costs in relation to an agreement that has been rescinded correctly. Any money that the agent is holding on behalf of the principal must be fully refunded.

3.5.6 Disclosure of interest and conflicts of InterestThe agent must disclose all interest in relation to the property and to dealings that relate to the property. This is done by way of the agency agreement and by the prescribed disclosure forms.

The Act prohibits real estate agents and their sales employees from obtaining or being connected to the obtaining of beneficial interest in the sale of a property, unless agreed to by the client. A breach of these requirements can lead up to 2 years imprisonment.

Agents will be required to disclose in the agency agreement the source and estimated amount of all rebates, discounts or commissions they receive in relation to expenses payable by the client. These usually involve costs associated with advertising and maintenance.

SECTION 47 DISCLOSURE FORMThis form discloses relationships for referrals, the amount or value of the monetary or other consideration that might be derived from the relationship.

Types of relationships will include: Family, Business, and Fiduciary relationships

It must be filled out by the agent when he /she refers a client (i.e. a person who pays commission to the agent) or potential buyer, at the time the referral is made, and signed by the person being referred before the exchange of contracts.

The form discloses the amount, nature or value of any benefit that may be received along with the type of relationship the agent has with the service provider. Service providers include solicitors, banks, mortgage brokers, pest inspectors, building inspectors and other real estate agencies. A “Potential Buyer” is a person who you believe is likely to purchase property.

SECTION 49 DISCLOSURE FORMThis form is used if the agent proposes to obtain a beneficial interest in a property that is listed with the agency they are working with. It is a prescribed form and contains a brief description of the nature of the interest and how it will be obtained.

It must be signed by the Vendor prior to the exchange of contracts. Failure to allow this to happen is a very serious breach of the Act with maximum penalties of $22,000 and/or 2 years in goal.

WARNINGBoth forms need to be given to the relevant person before they enter into a contract for the sale or purchase of the property and before any benefit is received.



3.5.7 Listing formsOnce the agreement has been signed the agent will need to prepare a file for the property, complete any listing register or database and ensure that all the details about the property are available for all staff to see. As part of the sales file, there should be a checklist to ensure that nothing is forgotten.

3.5.8 Tenanted propertiesIf an agent accepts an appointment to sell residential property that is tenanted, the agent must immediately give written notice to the managing agent. The managing agent must notify tenants in writing, of any intention to sell the property. The notice must include the name and contact details of the agent who has listed the property.

ACTIVITY 7Prepare an exclusive agency agreement (one is included in this Learner’s guide), for the property used in ACTIVITY 6 and ensure that it complies with all the requirements of Section 55 of the Property, Stock and Business Agents Act.

ACTIVITY 8During the listing presentation the agent provides an estimate of the likely selling price to be $500,000 to $550,000, and has substantiated that view. The vendor wants to advertise the property “By Negotiation” with a price guide of $450,000 plus, in order to attract interest.

The agent tells the vendor he can’t do this because his estimate is $500,000 to $550,000. The vendor tells the agent to change their opinion on the agency agreement to $450,000 to $550,000 or they will not sign the listing agreement, as they are paying for the advertising.

What legislation applies to this case, and who would be liable if the authorities take action?

3.6 Effective communication with the vendorOnce the property is listed, regular communication with the client is critical to success. Here are some tips to ensure the relationship with the vendor is successful.

Demonstrate an awareness of the client’s need by always sticking to agreed time schedules. It may at times need adjustment, but at least if this been discussed this with the client it may prevent conflict and misunderstanding

Keep the agent diary current and a part of daily activities. Get into the habit of referring to it on a regular basis and transferring any important points to the agency’s database

Don’t be afraid to ask for help when needed. The agent is likely to enhance their own creditability by being honest and recommending other professionals or staff if not able to give the client 100% of time and energy

FOLLOW UP Return calls – telephone messages should be responded to the same day or at least early the next day Show thanks for the client’s interest – even if not able to help them at this time, the agent should

respond by letter within a week Referrals – if referring a client onto another agent or party, follow up with a letter or email notifying

that the referral was done


CPPDSM4012A List property for sale Page 29 Update and recycle the good stuff and improve the materials that are less successful (there is nothing

worse than sending out materials that are out of date) Take time to research and update knowledge & skills (this is what builds a reputation as a leader in

the industry and will keep clients coming back) Say “thank you” often (especially to those who made the task easier) Know your clients (remembering small facts that clients have passed on in conversation makes them

feel valued) Set goals and work towards them

RESOLVE OUTSTANDING MATTERS Be proactive in dealings with clients to avoid misunderstandings and conflicts Try to ensure tasks are completed correctly the first time, but if, for some reason, a problem, does

arise, deal with it immediately and try not to allow it to happen again Have a clear process for dealing with conflict situations or conflicts of interest, both internal and

external Rewards members of the team for their accomplishments and keep in touch with customers after the

transaction has concluded Deal with problems as they arise, don’t keep avoiding them (this will almost certainly result in poor

customer relations and probably bad word of mouth)

ConclusionWhen talking about the possible sale price of a property, agents need to be aware of their legal obligations. In particular, it is important to understand that by cutting corners, not recording evidence, or giving opinions that you have no evidence to base it on, leaves you very exposed to being fined, or worse still, sued. Many agents will overvalue a property to get a listing, but in essence they make their job harder if they price the property out of the market place. A good agent is able to educate the prospective vendor as to how price is arrived at, and that the correct marketing and promotion of the property is critical to the outcome.



Appendix – Australian Privacy Principles

APP 1 — Open and transparent management of personal informationEnsures that APP entities manage personal information in an open and transparent way. This includes having a clearly expressed and up to date APP privacy policy.APP 2 — Anonymity and pseudonymityRequires APP entities to give individuals the option of not identifying themselves, or of using a pseudonym. Limited exceptions apply.APP 3 — Collection of solicited personal informationOutlines when an APP entity can collect personal information that is solicited.It applies higher standards to the collection of ‘sensitive’ information.APP 4 — Dealing with unsolicited personal informationOutlines how APP entities must deal with unsolicited personal information.APP 5 — Notification of the collection of personal information Outlines when and in what circumstances an APP entity that collects personal information must notify an individual of certain matters.APP 6 — Use or disclosure of personal informationOutlines the circumstances in which an APP entity may use or disclosepersonal information that it holds.APP 7 — Direct marketingAn organisation may only use or disclose personal information for directmarketing purposes if certain conditions are met.APP 8 — Cross-border disclosure of personal information Outlines the steps an APP entity must take to protect personal information before it is disclosed overseas.APP 9 — Adoption, use or disclosure of government related identifiersOutlines the limited circumstances when an organisation may adopt a government related identifier of an individual as its own identifier, or use or disclose a government related identifier of an individual.APP 10 — Quality of personal informationAn APP entity must take reasonable steps to ensure the personal information it collects is accurate, up to date and complete. An entity must also take reasonable steps to ensure the personal information it uses or discloses is accurate, up to date, complete and relevant, having regard to the purpose of the use or disclosure.APP 11 — Security of personal informationAn APP entity must take reasonable steps to protect personal information it holds from misuse, interference and loss, and from unauthorised access,modification or disclosure. An entity has obligations to destroy or de-identifypersonal information in certain circumstances.APP 12 — Access to personal informationOutlines an APP entity’s obligations when an individual requests to be given access to personal information held about them by the entity. This includes a requirement to provide access unless a specific exception applies.APP 13 — Correction of personal informationOutlines an APP entity’s obligations in relation to correcting the personal information it holds about individuals.



Assessment Section - CPPDSM4012AList property for sale


CPPDSM4012A List property for sale Page 32Assessment Information for Course ParticipantsTo be assessed as competent in this unit you must be able to demonstrate your underpinning knowledge and your ability to perform the tasks that relate to the learning outcomes (elements and performance criteria) specified for this unit. This assessment allows you to demonstrate your competence through one or more of the following assessment methods:

Knowledge based assessment questions Case Studies and / or Projects

The unit descriptor for this unit (which includes the elements and performance criteria, required skills, knowledge and understanding, range statements and evidence guide) has been included on the following pages for your information. The knowledge based questions and, case study and project activities (where applicable) in this assessment have been mapped to the performance criteria.

However, please note that in addition to successful completion of these assessment tasks, other assessment methods may be used to determine your competency. These may include practical demonstrations, role plays or third party/supervisor reports.

If you have extensive and current experience in the requirements of this unit, you may be eligible to apply for Recognition of Prior Learning as an alternative method of assessment. If you believe that this applies to you, please ask your trainer or assessor about applying for Recognition of Prior Learning.

Notes for Course Participants: Assessments are to be completed and returned or handed to your assessor / trainer by the agreed date.

You are completing a formal qualification so the standard of your work should reflect the quality of work you would want to achieve in the workplace. Your work should be neat, tidy and organised.

Where you have used external materials or resources to support your assessment work (eg: published authors or the internet) remember that you should reference the work correctly.

Should you have any difficulty with any part of your assessment you should immediately contact your assessor / trainer for assistance and advice.

Real Estate is a highly regulated industry sector and workers in the industry are expected to be able to understand and interpret the appropriate legislation. Where required you should identify the legislation that relates to your answer. You should make reference to the appropriate Section or Paragraph of the relevant Act or Regulation that applies in your State or Territory.Assessments: 1. Focus on the application of knowledge, skill and understanding of the performance criteria required in the

workplace and cover all aspects of workplace performance over a period of time2. Involve the evaluation of sufficient evidence to enable judgments to be made about whether competency

has been attained over a period of time3. Provide for feedback to the applicant about the outcomes of the assessment process and guidance on

future options4. Are equitable for all persons, taking account of cultural and linguistic needs5. Are valid, reliable, fair and flexible; and provide for reassessment on appeal6. Will be conducted by an authorised assessor



Participant Declaration & Signature – CPPDSM4012A

Participant’s Name:

Address:

Tel: Mob: E-mail:

Principal/employer’s Name: E-mail:

1. I have read and understood the Assessment information and notes for this assessment document r

2. The work in the attached assessments is my own. I acknowledge and understand that copying the work of others’ is plagiarism and will result in re-assessment

r

3. I have kept a copy of these assignments r

Participant’s signature: Date:

Participant’s comments:

Distance courses: Return your completed Assessment:For Trainer support/contact:

Ph: 1300 115 144Email: [email protected]

By mail to:MRTSuite 319, 410 Elizabeth StreetSurry Hills NSW 2010by email to:[email protected]

Assessment Outcome

Part A – Knowledge Based Assessment r Competent r Not yet Competent

Part B – Case Studies r Competent r Not yet Competent

Part C – Project r Competent r Not yet Competent

Assessor Comments / Feedback / Recommendations:

Assessor: The Course Participant is Competent in this assignment.

Assessor:

Signature:

Date:


CPPDSM4012A List property for sale Page 34CPPDSM4012A – List property for sale


CPPDSM4012A List property for sale Page 35Unit descriptor This unit of competency specifies the outcomes required to list all types of

property and businesses for sale. It includes prospecting for listings, establishing client requirements, planning and delivering property listing presentations, finalising listings for the sale of property, and recording and acting on client instructions. The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities

Employability skills The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements

Prerequisite units NilApplication of the unit This unit of competency supports the work of licensed real estate agents and

real estate representatives involved in the listing of all types of property and businesses for sale

Competency field Real estateUnit sector Property development, sales and managementELEMENT PERFORMANCE CRITERIAElements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide.

Prospect for property listings

1.1 Business development area for property listings is identified in line with agency practice.

1.2 Key sources of property listings are identified in line with agency practice and legislative requirements.

1.3 Strategies for attracting property listings are implemented in line with agency practice and legislative requirements

1.4 Business and personal referral networks are established and maintained in order to attract property listings

Establish client requirements

2.1 Enquiries from potential clients regarding property listings are handled promptly to enable high quality service delivery according to agency practice.

2.2 Appropriate rapport is established with potential client.2.3 Client requirements regarding property are clarified and accurately assessed

using appropriate interpersonal communication techniques.2.4 Appointment is made with client to discuss property listing in line with

agency practicePlan property listing

presentation3.1 Preparations are made for property listing presentation in line with agency

practice.3.2 Promotional material and listing kit are prepared to highlight benefits of

agent and agency in line with agency practice, ethical standards and legislative requirements

Deliver property listing presentation

4.1 Visual inspection of property is conducted to provide client with a realistic range of marketing and selling options in line with agency practice and legislative requirements.

4.2 Key decision makers are identified to ensure that their needs and concerns are met in the listing presentation.



4.3 Market influences likely to affect the property listing are discussed with the client.

4.4 Recommended property improvements, estimated costs and likely influence on property sale and price are discussed with client.

4.5 Property appraisal is provided that includes realistic selling price range.4.6 Promotional materials, agency listing kit and relevant legal and financial

information are used to support the listing presentation.4.7 Appropriate method of sale and marketing activities are discussed with

client4.8 Agency services, fees and charges are discussed with the client.4.9 Client is given time and space to evaluate agency services while time is used

to maximum advantage to promote agency.4.10 Client questions are answered fully and honestly.4.11 Effective interpersonal communication skills are used to respond to client

questions and concernsPrepare and execute

agency agreement5.1 Client agreement to list property with agency is confirmed.5.2 Statutory and agency listing documentation is explained to client in line

with agency practice and legislative requirements.5.3 Agency fees and conditions are negotiated and agreed with the client.5.4 Effective communication skills and negotiation techniques are used to

respond to client questions and concerns.5.5 Property details are recorded accurately and correctly.5.6 Listing documentation is completed in line with client instructions, agency

practice and legislative requirementsRecord and act on

instructions6.1 Client instructions are recorded to meet sales or auctioneering legislative

requirements and agency record-keeping requirements.6.2 Business documents are produced to reflect advice to relevant parties

involved in the listing transaction.6.3 Information to clients is provided to reflect progress made within the terms

of the agreement


CPPDSM4012A List property for sale Page 37REQUIRED SKILLS AND KNOWLEDGEThis section describes the essential skills and knowledge and their level, required for this unit.Required skills:• ability to communicate with and relate to a range of people from diverse social, economic and cultural

backgrounds and with varying physical and mental abilities• negotiation and presentation skills to conduct listing negotiations with clients• analytical skills to interpret documents such as legislation, regulations and standard and statutory forms

associated with the listing of properties for sale• application of risk management strategies associated with the listing of properties for sale• computing skills to access the internet and web pages, prepare and complete online forms and search

online databases• decision making and problem solving skills to analyse situations and make decisions consistent with

legislative and ethical requirements• literacy skills to access and interpret a variety of texts, including legislation and regulations; prepare

general information and papers; prepare formal and informal letters, reports and applications; and complete standard and statutory forms associated with listing properties for sale

• numeracy skills to calculate and interpret data to provide estimates of selling price range• planning, organising and scheduling skills to undertake work-related tasks, such as inspecting

properties, organising appointments and reporting to clients on progress associated with property listings

• research skills to identify and locate documents and information relating to results of comparable property sales

Required knowledge and understanding: agency and statutory listing documentation agency fees and conditions agency practices in relation to obtaining listings business and personal referral networks business development area for property listings ethical standards associated with listing properties

for sale listing presentation kit, including content, format

and purpose marketing activities market value, including:

forces that create value types of value, such as value to owner,

statutory value and security value methods of sale negotiation techniques networks that provide listing opportunities

presentation techniques

relevant federal, and state or territory legislation and local government regulations relating to: anti-discrimination and equal

employment opportunity anti-money laundering consumer protection, fair trading and

trade practices employment and industrial relations financial services OHS privacy property sales

risks and risk management strategies role of estate agent in providing estimate of

value sales property listing presentation sources of listings target groups for obtaining listings techniques for identifying needs and

motivation of clients ways of developing and maintaining a sales business network

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:• completing standard and statutory documentation associated with listing

properties for sale• finalising and negotiating the listing of properties with clients• knowledge and application of determining client requirements with regard

to the listing of properties• knowledge of agency practice, ethical standards and legislative

requirements affecting the listing of properties for sale• knowledge of consumer protection principles that impact on the listing of


CPPDSM4012A List property for sale Page 38REQUIRED SKILLS AND KNOWLEDGE

properties for sale• maintaining business records associated with the listing of properties for

sale• maintaining communications with clients throughout the listing process• planning and delivering effective listing presentations



PART A – Activities (copied from within the Learner Manual)

ACTIVITY 1Using the information from the resources mentioned in the notes you are required to compile a profile of a particular area. Pick an area in a suburb you are familiar with and prepare a profile with the following information: -

1. Identify the demographics of the area including statistics for age, employment and family types2. Identify geographical markets3. Determine possible trends in housing needs4. Formulate a strategy for expanding your client base

ACTIVITY 2Design a checklist to ensure that all the appropriate information is recorded from a potential vendor.

ACTIVITY 3Design a list of questions that you could use that will help you to discover and then rate the motivation of the vendor. You should remember that sometimes the answer the Vendor may give you will not be the real reason for selling.

ACTIVITY 4Undertake an analysis of the area you live, and decide what information you would need to collect in order to be able to advise prospective vendors about the issues they need to address if they wish to place their property on the market for sale. In your answer: -1. List the information you would collect2. List the issues you would discuss with a potential vendor

ACTIVITY 5Go to the OFT’s web site and read the Guidelines on Price Substantiation. Using your own property, or the one you live in prepare an Estimate of Selling Price using a copy of the sample form here. Put as much detail you feel that must be held on file that substantiates your opinion as to the likely selling price range for the property, and that would satisfy OFT requirements.

ACTIVITY 6For the property you used earlier, prepare a written report for the vendor that covers the following:1. A description of the property setting out its features and benefits.2. Details of the present condition of the property.3. Details of any work you consider that is needed to make the property saleable.4. Your assessment of the likely selling price of the property if the property was placed on the market at the present time.

ACTIVITY 7Prepare an exclusive agency agreement (one is included in this Learner’s guide), for the property used in ACTIVITY 6 and ensure that it complies with all the requirements of Section 55 of the Property, Stock and Business Agents Act.

ACTIVITY 8During the listing presentation the agent provides an estimate of the likely selling price to be $700,000 to $750,000, and has substantiated that view. The vendor wants to advertise the property “By Negotiation” with a price guide of $650,000 plus, in order to attract interest.


CPPDSM4012A List property for sale Page 40The agent tells the vendor he can’t do this because his estimate is $700,000 to $750,000. The vendor tells the agent to change their opinion on the agency agreement to $650,000 to $750,000 or they will not sign the listing agreement, as they are paying for the advertising.

What legislation applies to this case, and who would be liable if the authorities take action?

PART B – QUESTION AND ANSWERQUESTION 1.List 10 methods that can be used to prospect for listings.

QUESTION 2.What function does a pre-listing kit perform?

QUESTION 3.What legislation impacts on the listing of a property for sale?

QUESTION 4List the information you would seek from a potential vendor in order to determine their requirements in relation to the sale of their property.

QUESTION 5What research would you do before you undertook a listing presentation for a property?


CPPDSM4012A List property for sale Page 41QUESTION 6Under the Property, Stock and Business Agents Act, the Director-General can require an agent who gives a vendor their estimate of the likely selling price of a property, to do what?

QUESTION 7List four (4) of the nine (9) elements that the OFT Guide on Price Substantiation expects agents to consider when arriving at their estimate of likely selling price of a property.

QUESTION 8What records must be placed on a sales file immediately after a property has been listed?

QUESTION 9What questions would you ask a vendor to confirm that you understand their requirements?

QUESTION 10Develop a list of topics/questions you would cover during a listing presentation for a house.




Documents

files.transtutors.com · Web viewThe sale of property (real estate) is an endless cycle of list – sale – list – sale. Today’s buyer is tomorrow’s seller. It is understanding,