The listing appointment with real numbers (CMA, net sheet, listing contract)

Maya (from the last lesson) has an appointment with Dana and Leo, who own a 3-bedroom house in Louisville, Colorado. They hope to list it at $575,000. Here is how she handles the hour, step by step.

Step 1: prepare before you go

Maya pulls the public record and MLS facts: 2,100 square feet, 3 bedrooms, 2.5 baths, updated kitchen, two-car garage, no finished basement. A CMA (comparative market analysis) is her written estimate of what the home should sell for, built by comparing it to similar homes that recently sold. It is not an appraisal; an appraisal is a licensed appraiser's formal opinion of value for a lender. She also checks active and pending listings to see what buyers can choose from today.

Step 2: the brokerage disclosure comes first

Before she asks Dana and Leo about confidential matters, such as why they are selling or their lowest price, she gives the written brokerage disclosure (C.R.S. 12-10-408; Rule 6.5.A). The disclosure must tell them that different relationships are available: seller agency, buyer agency, or transaction-broker (C.R.S. 12-10-408(1)(c)). "Small talk" about price range or property style does not need it first (Rule 6.5.B). Unless a single-agent relationship is set up in a written agreement, a broker is treated as a transaction-broker (C.R.S. 12-10-403(2)). So if the sellers choose seller agency, the written listing agreement is what creates it. Maya describes the Commission-approved disclosure form by its title and lets them read it; she does not paraphrase it from memory.

If she is a seller's agent she is a limited agent. She must follow the written agreement, use reasonable skill and care, show good faith and loyalty, seek a price and terms acceptable to the seller, present all offers promptly, disclose adverse material facts she actually knows, and counsel them on benefits and risks (C.R.S. 12-10-404(1)).

Step 3: build the CMA

Maya picks three comps (comparable sales: similar homes close by that sold in roughly the last six months). She then makes adjustments: she adds dollars to a comp that is worse than the subject house and subtracts dollars from one that is better, so each comp is made to look like the subject. The result is the adjusted price.

Her market data says one square foot is worth about $110 here, a dated kitchen costs about $12,000 of value, a third garage bay adds about $8,000, a finished basement adds about $20,000, and prices have risen about 1% in the last three months.

Comp	Sold price	Adjustments	Adjusted price
A: 2,000 sq ft, dated kitchen	$560,000	+$11,000 (100 sq ft smaller) +$12,000 (kitchen)	$583,000
B: 2,250 sq ft, 3-car garage	$595,000	-$16,500 (150 sq ft larger) -$8,000 (extra bay)	$570,500
C: 2,100 sq ft, finished basement, sold 3 months ago	$590,000	-$20,000 (basement) +$5,900 (1% market rise)	$575,900

Average of the three adjusted prices: ($583,000 + $570,500 + $575,900) / 3 = $1,729,400 / 3 = $576,467, about $576,500. That supports a list price of $575,000. Maya also tells them the range: roughly $570,000 to $583,000.

Step 4: the seller net sheet

A seller net sheet shows the money the sellers will actually take home. A price alone misleads people. Maya lists every cost she can estimate. All of these figures are examples; each number is negotiable or depends on the deal and must be checked with the title company and the lender.

Line	Amount
Sale price	$575,000
Listing side fee (2.5%)	-$14,375
Buyer side fee offered (2.5%)	-$14,375
Mortgage payoff	-$310,000
Owner's title insurance (example)	-$1,800
Property tax owed through closing (June 30 closing, 181 of 365 days of a $3,400 yearly bill)	-$1,686
Seller's closing fee share	-$300
HOA transfer and document fees	-$600
Net to seller	$231,864

Check the math: $14,375 + $14,375 = $28,750; add $310,000 = $338,750; add $1,800 = $340,550; add $1,686 = $342,236; add $300 = $342,536; add $600 = $343,136. $575,000 - $343,136 = $231,864. The property-tax line is a prorated amount: $3,400 x 181 / 365 = $1,686.

Fees are negotiable between broker and client, so the net sheet uses what the listing agreement says, not a "standard rate".

Step 5: the Exclusive Right-to-Sell listing

The most common listing is the Exclusive Right-to-Sell: the sellers hire one brokerage and owe the agreed fee if the house sells during the listing, even if the sellers find the buyer themselves. Maya uses the Commission-approved form and points out the sections by title: the Brokerage Relationship, Compensation, Listing Period, and Property sections. Two legal points:

• A seller listing must be in writing before any brokerage services are performed (Rule 6.14.C).
• It must have a definite end date (Rule 6.14.D). Without a definite date the listing does not comply with the Rules.

If the contract is not performed, the relationship ends at the earliest of any agreed expiration, the parties ending it, or one year after the engagement (C.R.S. 12-10-409(1)(b)). Maya also asks if another listing is in force; if so, she asks for written confirmation that it has ended and, if they want out of it, tells them to talk to a licensed attorney (Rule 6.15.C-D).

Step 6: the Seller's Property Disclosure

Colorado has a Commission-approved Seller's Property Disclosure form. The sellers fill it in about what they know: roof, water intrusion, additions, defects. Maya explains that she herself must tell the buyer any adverse material facts she actually knows (C.R.S. 12-10-404(1)(c)(III)). Never advise a seller to leave something off. Facts about psychological stigma are a special case, which the seller's broker may not reveal without consent (C.R.S. 12-10-404(2)(e)).

Step 7: pricing talk and confidentiality

Dana asks, "Could we list at $620,000 and see?" Maya shows that no adjusted comp supports it. She explains that homes priced above the market often sit, then sell for less. The decision is theirs. As seller's agent she must not tell any buyer that the sellers would take less, why they are selling, or that they would accept other financing, unless the sellers consent (C.R.S. 12-10-404(2)(a)-(c)).

Example with real numbers

Review of the Louisville listing: list at $575,000, the CMA range $570,000-$583,000, a net of $231,864 at full price. If a buyer pays $565,000 instead, the fee lines fall to 5% x $565,000 = $28,250, and the other costs stay at $314,386 ($310,000 + $1,800 + $1,686 + $300 + $600). Net = $565,000 - $28,250 - $314,386 = $222,364. That is $9,500 less than the full-price net, though the price fell $10,000, because the fee shrinks with the price.