“Navigating a Hot Sellers Market” Class Chapter 1 quiz questions with no answers.
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1. Today, the most common first step in the home buying process is
A. Look in the newspaper
B. Look online for properties for sale
C. Talk with friends
D. Contact a real estate agent
2. Among first-time homebuyers this year, _________ depended on family or friends for financial help purchasing, commonly in the form of gifts or loans.
D. More than half
3. ____ percent of real estate firms have websites.
A. Only 40
B. Over 90
C. About 80
D. Less than 75
4. What is a cause of low inventory?
A. Homeowners with mortgage balances lower than property value
B. Investors flooding the market
C. Faster bank foreclosures
D. Less restrictive underwriting
5. Various studies continue to cite the _____________ as a problem in housing.
A. Baby Boomers
D. First time homebuyers
6. Which produces the most number of sales?
A. Repeat clients
C. Social media
D. Agents’ websites
7. Bank foreclosures in most markets:
A. May take longer to sell
B. Tend to be in shorter supply
C. Are usually handled by auction
D. Are overpriced
8. Fewer supply constraints mean more options for ___________.
9. Working the demand side of a hot sellers’ market:
A. Is more difficult than the supply side
B. Is easier than the supply side as there are more buyers than sellers to work with
C. Pays lower commissions
D. Is getting easier as tight credit loosens up
10. Which generation was struggling to buy homes but is now moving the market?
B. Baby Boomers
C. Gen X’ers
D. Gen Y’ers
11. U.S. homebuilding in December 2019
A. surged to a 13-year high
B. kept a steady pace
C. Showed a modest gain
D. dropped off significantly
12.What happened to residential construction activity in 2019?
A. It remained level
B. It kept pace with inflation
C. It continued to rise strongly
D. It declined
13. Metropolitan areas with the hottest housing markets in 2020 are largely concentrated in:
A. The northeast
B. No particular area
C. Mid-Atlantic states
D. The southeast
14. Bank foreclosures in most markets:
15. Credit score requirements have:
A. Been increased as part of more restrictive underwriting
B. Been eliminated in favor of debt/income ratio underwriting
C. Loosened somewhat
D. Been left up to the lender selling loans in the secondary markets
16. Lenders must do what with regard to engaging appraisers?
A. Use in-house staff for FHA loans only
B. Go through an independent intermediary
C. Not allow listing broker to communicate directly with appraiser
D. Engage directly if property is bank-owned
17. The Qualified Mortgage Rule:
A. Requires lenders to submit all loans to the secondary market for final underwriting
B. Has all but eliminated non-conforming loans
C. Provides protection to lenders for lawsuits
D. Expires in 2015
18. Fewer supply constraints mean more options for ___________.
19. Lenders, to be competitive in this market, should offer:
A. Online nationwide service
B. Good service and an excellent local reputation
C. Free appraisals
D. Sub-prime loans
20. In years to come, the big draw to the top 10 markets will continue to lie in their _____________.
A. levels of affordability
C. reasonable climates
D. Social makeup
21. What is the most often used benchmark for measuring inventory?
A. The number of days on the market.
B. The percentage of first-time buyers
C. Total supply minus total demand
D. The number of days from listing to closing
22. Which produces the most number of sales?
23. Real estate agents prefer to contact their clients through
A. E-Mail or text messaging
B. Instant messaging
D. Postal mail
24. A hot sellers’ market is often recognized by the following:
A. Upward pressure on commissions paid by sellers
B. Fix and flippers selling directly to buyers without representation
C. Shorter loan processing times
D. Appearance of discount brokerages
25. Home prices are rising roughly ___________ as average wages.
A. The same pace
B. About 1.5 times as fast
C. Twice as fast
D. Was under 50% in high demand areas
“Navigating a Hot Sellers Market” Class Chapter 2 quiz questions with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages
1. Which of the following repairs or home improvements would you recommend to a seller before listing?
A. Add a swimming pool
B. Add an addition to gain more square footage
C. Replace a roof damaged by hail
D. Replace the patio furniture
2. The term “Won’t Last” is:
A. Used to describe homes that should be torn down
B. An often employed term that will not, by itself, increase the sense of urgency for the buyer
C. Effective when using a limited time marketing period
D. Used in marketing distressed homes where foreclosure is imminent
3. Which is NOT a seller’s alternative in deciding how to sell his/her home?
A. Discount brokerages
B. Traditional full service real estate brokerages
C. For sale by owner (FSBO)
D. Your brother who just passed his real estate exam
4. What do you tell a seller who needs to buy another home in a hot sellers’ market?
A. Consider moving out now to give buyers the maximum options for moving
B. Suggest a contingency for the seller securing a replacement home when an offer is received
C. Suggest looking for replacement housing, including temporary housing and storage, in order to take advantage of the best offer
D. Help the seller find a new home before putting theirs on the market
5. Are open houses necessary in a hot market?
A. They are still an effective marketing method of exposure if approved by the seller
B. No, but they are a good way to capture potential buyers for clients
C. They are no longer safe for licensees
D. Depends – The seller should have the option of input into the marketing plan
6. Is asking for feedback too aggressive for an open house?
A. Yes – potential buyers will immediately think they are being “sold”
B. No – most people like to give their opinion
C. Yes – in a hot sellers’ market, you should not let a buyer take charge
D. It may be, but you are working for the seller, and if you don’t ask, you likely won’t get any feedback
7. In a hot sellers’ market, can a rookie or part-time agent get listings?
A. Not likely; there are too many experienced full-time agents out there
B. They will need to cut their teeth on buyers before going after listings
C. A licensee can demonstrate that he/she has access to resources (team or partner or broker) that more than makes up for a lack of experience or full time status
D. Only distressed listings
8. Factors contributing to making the best first impression of a home on the internet are:
A. High quality photos highlighting the home’s best features only
B. High quality photos featuring complete views of every room and all exterior elevations
C. Dynamic marketing remarks using key catch phrases and creating the sense of urgency to move quickly as a buyer
D. Timing the listings to appear on Friday
9. Use of “Sold” or “Under Contract” riders:
A. Is great for business as neighbors will see how fast you sold the home
B. Help eliminate unwanted sign calls from neighbors and unqualified buyers
C. Should not be used as deals fail
D. Should be used only with the permission of the seller after consideration of the merits and disadvantages
10. Sellers use the internet to do all of the following EXCEPT:
A. Determine the value of their home through valuation sites
B. Review websites in screening potential listing companies
C. Check out the competition
D. Prepare and submit the real estate contract
11. The MLS entry should be:
A. Carefully crafted and complete with the best and most complete photos possible
B. Entered as soon as possible, even if photos are not available yet
C. Timed to hit the market before the weekend
D. Hyped with catch phrases like “won’t last” to induce a sense of urgency
12. What has greatly contributed to new discount brokerage businesses?
B. Buyers who are unable to obtain mortgage loans
C. Homes going under contract quickly
D. High priced agents who are unsuccessful in obtaining buyers
13. High quality and expensive brochures:
A. Are needed only for high-end homes in the hot market
B. Are a waste of time and money as the home will go under contract before they can be printed
C. Can be produced quickly and should not be overlooked as a valid marketing tool
D. Should be a stock format and quickly and cheaply produced
14. Are real estate agent professional designations important?
A. Not really, as 75% of all real estate agents have at least one designation
B. The public is not even aware of them
C. They demonstrate that the real estate agent has taken additional, specialized real estate training, which helps to set that agent apart
D. In a hot sellers’ market, the seller only wants exposure, not expertise
15. Course correction should be considered when:
A. You have a lot of showings but not offers
B. Deals keep falling through because of financing
C. School is back in session
D. An election results in a new administration
16. What should a licensee NOT do for an open house?
A. Provide access inspection reports or appraisals
B. Put out refreshments
C. Use air fresheners
D. Use balloons
17. If the seller’s home is not going to show well because of clutter and cleanliness:
A. The licensee should be honest and open about the benefits of de-cluttering and cleaning
B. Grin and bear it as you don’t want to offend the seller in your listing presentation
C. Let the feedback provide the incentive to remedy the issues
D. Suggest a reduced price
18. Examples of social media include all of the following EXCEPT:
D. Turbo Tax
19. Are sellers concerned about loyalty or exclusivity?
A. No – sellers are concerned about the bottom line only
B. If fully informed, the seller may not object to the licensee representing both parties
C. The listing agent should never try to represent both parties as it breaches fiduciary responsibility
D. The seller has no choice if the buyer requests dual/transaction representation
“Navigating a Hot Sellers Market” Class Chapter 3 quiz questions with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages
1. Hesitation in making offers:
A. Is prudent; always recommend that the buyer sleep on the decision
B. Will let the seller know that the buyer is not desperate
C. If the buyer is prepared and knowledgeable, is not necessary if the home seems right
D. Will usually mean that the licensee is not pushing hard enough
2. Should an offer include a “story”?
A. If the buyer wishes to communicate directly to the seller in their own format in this manner to plead their case
B. No – it only muddies the water and causes the offer to be burdened and therefore less likely to be considered
C. Yes – a standard cover letter should be prepared by the agent to accompany each offer
D. No – the only factors a seller cares about are financial
3. Buyers who are not completely ready and qualified to buy:
A. Should be avoided
B. Can always catch up after the contract is accepted
C. Should be encouraged to do what is necessary to put themselves in a position to buy
D. Should be pestered
4. Why is it a good idea to team up with an investor?
A. They require less work as they tend to be more sophisticated
B. You should not, as they will not be loyal and will often go with the listing company to save money
C. You can develop skills and resources to make you more valuable
D. You can learn techniques to better compete with them on future deals
5. Should sellers’ agents reveal the competing bids on their listings?
A. It is inappropriate for the selling agent to ask
B. That would be up to the seller to authorize, but should be encouraged
C. Listing agents should never reveal their cards
D. Local MLS regulations govern this in rules and regulations
6. How can a variable commission affect the chances for contract acceptance?
A. The listing broker cannot charge a commission if representing the buyer in any capacity
B. Licensees will be hesitant to show properties with variable commissions and there will be less competition
C. A buyer competing with an in-house sale with a variable commission will be at a disadvantage
D. Variable commissions are not allowed by MLS
7. How does the reputation of the buyer’s agent influence contract acceptance?
A. A bad experience or reputation can influence the listing agent’s willingness to promote acceptance of a perfectly good offer
B. Aggressive brokers have an advantage as the listing broker and seller know that the transaction will be handled quickly
C. The seller doesn’t care about the buyer’s agent and will look exclusively at the proposal
D. The listing broker cannot mention previous bad experiences with the buyer’s agent under MLS rules
8. When showing properties:
A. Stay on track and don’t waste time on homes that don’t appeal to the buyer
B. Limit showing time to 15 minutes each
C. More is better
D. Encourage buyers to take pictures
9. Can the licensee avoid contract rejection in a hot sellers’ market?
A. Probably not – the key is to move on and learn lessons
B. Yes – always insist on an escalation clause
C. Yes – if buyer expectations are lowered and lower-priced homes needing work are bid on
D. Yes – with pre-negotiation with the seller’s agent
10. Should buyers be encouraged to bid over the price supported by comps?
A. No – there will always be appraisal repercussions
B. Only if the buyer is willing to waive the appraisal contingency
C. If buyer and agent are comfortable with and believe that mitigating circumstances support a higher price and the contract contingencies are acceptable to the buyer
D. Yes, it may be the only way to secure a desirable home
11. Technology in prospecting is:
A. Greatly improved and the best tool an agent has to keep up with the market
B. Available to buyers directly and thus reduces the time that needs to be spent prospecting
C. Not sophisticated enough to replace the old techniques
D. Only available at a great investment into hardware
12. Should the licensee “hand off” repeatedly unsuccessful buyer clients?
A. Yes – a referral fee is better than nothing
B. Don’t worry, the agent will be fired anyway
C. No – too much time is already invested and a deal must be struck sometime
D. If the licensee is competent, communicative, and has established a good relationship with the buyer, there is no need to switch, unless of course the buyer makes that call
13. According to a Trulia study, in a hot sellers’ market, what are the most common mistakes buyers make?
A. Insulting the seller by offering less than the sales price
B. Paying too large of an earnest deposit
C. Acting too quickly
D. Acting out of desperation
14. Working with portfolio investors:
A. Should be limited to firms that also offer property management
B. Should be left to commercial brokers
C. Should be undertaken only if the licensee also owns rental properties
D. Requires a high degree of skill and ingenuity
15. What are two types of investors in residential real estate?
A. Fix and flippers and portfolio investors
B. Owner occupants and renters
C. Government users and institutional
D. Land speculators and farmers
16. What is NOT a necessary tool of a successful flipper?
A. Market savvy
B. Ability and temperament to take risks
C. Financial capability
D. Government connections
17. In a hot sellers’ market, the licensee should set up MLS search parameters to:
A. Stick to specific and narrow parameters specified by the buyer in order to stay focused only on properties truly meeting their goals
B. Keep an open mind and include overlapping areas and expanded or contracted requirements so as to provide the most number of prospects to consider
C. Encourage buyers to stay off the Internet
D. Contact buyers on a 24/7 basis with new prospects for review
18. Which is NOT a factor that can help offset the advantage of a cash offer over a loan contingent offer?
A. Appraisal contingency waiver
B. Inspection waiver
C. Dates more attractive to the seller
D. Earnest money promissory note
19. A “story” that might be of influence on a seller should NOT look like this:
A. I grew up in this neighborhood and would love to return to raise my children here
B. I am a new teacher at the high school in the neighborhood and would love to live this close to work and amongst the children I will be teaching
C. We have missed out on the last 15 offers we made and are absolutely desperate to buy something, anything
D. We have always admired your front garden and commented on how well your home is maintained, just the way we would keep it
20. Contract software and electronic signatures:
A. Can reduce the effort needed to make offers and enhance chances for success
B. Don’t change anything as far as the buyer is concerned
C. Aren’t worth the extra investment needed
D. Are approved in all states
“Navigating a Hot Sellers Market” Class Chapter 4 quiz questions with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages
1. Which of the following is NOT a basic component of an offer?
B. Source of funds
C. Closing date
D. Marital status of the buyer
2. Advantages to the seller of having a backup contract include all of the following EXCEPT:
A. There are no advantages to the seller of having a backup contract
B. A backup contract is a great negotiating tool if the buyer in the current transaction has unreasonable demands
C. If the current contract fails, it is a seamless transition to a new buyer
D. It provides a safety net for the seller
3. The listing agent should devise a strategy with the seller on how to deal with multiple offers:
A. It is not important to have a strategy in place
B. After all offers have been presented
C. As soon as the first few offers come in
D. During the listing process
4. The strength of an offer is made up of all the following components EXCEPT:
C. Source and strength of funding
D. Brokerage affiliation of the buyer’s agent
5. What does the term “short fuse” mean in the context of contract review?
A. The seller has a short, specified time to act after the contract has been presented
B. The buyer’s agent is making a threat
C. The seller has exactly 1 day to accept the offer
D. The listing agent is limited to the number of offers they can present to the seller
6. Sellers in a hot market may have unrealistic expectations that:
A. Their home will sell fast
B. The buyer will want to purchase their home fully furnished
C. The buyer will pay all closing costs
D. The listing agent will always reduce their commission
7. Why is it important for the buyer’s agent to ask about the seller’s situation upon initial contact?
A. To discover how to incorporate language and dates in the contract that will help the seller
B. The information will help you get the listing when it expires
C. To give your buyer something to gossip about with new neighbors
D. The seller’s situation is irrelevant
8.When submitting an offer on a bank-owned property, you should NOT do the following:
A. Submit a complete offer
B. Follow the instructions completely
C. Submit any required addenda
D. Use your own forms for addenda to better protect your client
9. A good approach to handling multiple offers is:
A. Deal with offers as they come in
B. Wait until the final offer has come in to review with the seller
C. Accept the first offer received
D. Always accept the highest price offer
10. What should be your primary concern as an agent when offering a contract from the buyer or presenting an offer to a seller?
A. Your commission
B. The amount of effort the transaction will take
C. The best interests of your client
D. Whether or not you like the other agent
11. The ____ makes the decision on whether or not terms of other offers should be disclosed to the selling agent presenting an offer.
B. Listing agent
C. Listing agent’s managing broker
12. ____ is always key to developing a relationship with the other agent.
A. A gift
13. Which is NOT an inherently conflicting set of goals between buyers and sellers?
14. What is one advantage of a backup contract to the buyer?
A. The buyer will get a lower price on the property
B. Competition is eliminated because the backup contract will take effect immediately if the first contract fails
C. The buyer will not have to pay closing costs
D. There is no advantage for the buyer of having a backup contract
15. Why is it in the best interest of the seller for a listing agent to disclose what offers have been submitted if asked?
A. It is not ever in the best interest of the seller to disclose this information
B. An agent might have a buyer who is willing to make a higher offer with better terms
C. It may turn away prospective buyers
D. The buyer may not believe what is disclosed to be true
16. A backup offer has which of the following advantages:
A. The price can be changed by the seller
B. The buyer must wait until the backup offer becomes “first” before seeking other alternatives
C. The seller has an incentive to pull the plug on the first offer if there is a backup offer waiting
D. It ties up the buyer’s earnest money deposit so it cannot be used elsewhere
17. Which of the following is a subjective factor of an offer to purchase?
B. The buyer’s story and motivation
C. Closing contingencies
D. Terms of the offer
18. Negotiating a transaction for either party may be influenced by:
A. Market conditions
B. Which brokerage you are affiliated with
C. Time of the year
19. When drafting an escalation clause, the licensee should NOT include:
A. An escalation clause without a Cap
B. A verification procedure
C. Limiting language
D. Specified amount over competing offer that will be effective
20. ____ almost eliminates the delay in communication of an offer.
D. Electronic contracts
21. The risk of countering for the seller does NOT include:
A. A perceived snub by the buyer
B. The original offer may expire
C. Buyer remorse can set in before acceptance
D. Achieving better terms for the seller
22. If a buyer is very interested in a property, the buyer’s agent should FIRST do the following:
A. Write an offer immediately during the showing
B. Communicate the buyer’s interest to the listing agent
C. Have the buyer think about it and schedule a second showing
D. Call an inspector
“Navigating a Hot Sellers Market” Class Final Example questions with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages
1 of 10 Which licensee is more likely to be successful in listing homes in a hot sellers’ market?
A. The one who works for a large national firm
B. The one who works for a discount listing firm
C. The one who offers the most comprehensive and thoughtfully prepared marketing strategy
D. The one who offers the lowest commission
2. What should a licensee do to make the best first impression on MLS and the internet?
A. Time the listing to appear on Friday
B. Post the best quality photos with views of every room and the exterior
C. Use catchy phrases to entice the buyer with a sense of urgency
D. Highlight only the best features of the home
3. What might be a drawback in using “Coming Soon” signs?
A. No drawbacks – you might get a double-ended deal and the seller gets a quick sale
B. An early sale may be without maximum exposure and therefore maximum price
C. More possible buyers will see the listing
D. Possible reduced commissions
4. Fixed rate or discount brokerages are:
A. Only effective in low cost housing
B. Cut rate and low service operations and should be avoided
C. A new force in the market that licensees must compete with by offering professional, competent, and fairly priced services
D. Mostly used by banks for marketing foreclosed properties
5. Which is NOT a good use of the internet?
A. Determine the value of their homes on various valuation sites
B. All answers are correct
C. Check out the competition
D. Search for a company/licensee to list their home
6. Are open houses still necessary?
A. Yes – sellers expect them
B. No – the property will sell once the sign and MLS are up
C. Yes – they are a good way to capture buyers
D. Depends – They can increase exposure and enable more buyers to see the listing
7. What is the best way to deal with a seller’s cluttered and less than clean house?
A. Recommend lowering the price below comparable properties that show better
B. Wait for showing feedback so that the bad news comes from other agents
C. Do not alienate the seller at the listing presentation, the home will sell anyway
D. The licensee should be honest and open about the benefit of de-cluttering and cleaning on achieving the best price and offer possible solutions
8. Is it necessary to provide room dimensions and minor details of the home?
A. No – there is too much information posted and buyers can’t focus on important features
B. May be added after the listing is already posted if you didn’t have time to fully obtain and should not delay the listing from appearing
C. Yes, the maximum amount of data should be provided at the first exposure
D. No, these are less important in the hot market as buyers will look at the home anyway
9. Should high quality flyers and other marketing material be provided in the hot market?
A. Yes, but a stock format and inexpensive materials will suffice
B. No – they are a waste of money as the home will sell and they may not be produced in time
C. Yes – they can be prepared in advance and produced quickly and should not be overlooked as a valuable marketing tool
D. Yes — on homes priced in the top 10%
10. Name two major market conditions necessary for a hot sellers’ market:
A. Weak builder inventory and tight lender underwriting
B. Low ratio of investors to owner occupants
C. Surplus of buyers and strong inventory
D. Lack of inventory and strong market demand by buyers
11. What factor does NOT contribute to a low inventory?
A. Decreased buyer demand
B. Strong investor presence in market
C. Lack of equity by homeowners
D. Slow-downs in bank foreclosures
12. Some of the lowest “Days on Market” numbers are found in the following:
A. Areas with a high inventory of homes available
B. The Gulf states
C. New York City
D. Texas, Colorado, and the West Coast
13. Since the crash in 2008-09, appraisal requirements have:
A. Have stayed about the same
B. Gotten less restrictive overall
C. Been strictly regulated by the Fed
D. Gotten more restrictive but are still flexible enough to accommodate a changing market
14. What is true about the Appraisal Institute?
A. It is concerned with the liability of the appraiser and unwilling to recommend flexibility in valuation
B. Is regulated by the federal government and unable to change fixed industry standards for determining value
C. It has been silent on the issue of flexibility in rising cost markets
D. It recommends taking into consideration analysis of market trends in evaluating changing values
15. Should a licensee ever suggest a “sight unseen” contract?
A. Yes – there are always “outs”
B. Yes — if the buyer is completely unavailable
C. Yes – if circumstances warrant and the licensee and buyer are in sync
D. No – there is too much liability for the licensee
16. Contract software and electronic signatures do NOT provide which?
A. An easier way to continue to compete for properties
B. Enhanced negotiation and documentation tools
C. Convenience and time saving for all parties to the transaction
D. A replacement for the need for careful research and contract wording
17. Buyers should NOT be encouraged to attend open houses:
A. Of course they should be encouraged to attend. They will anyway
B. Yes, it is the licensee’s job to expose prospects to their clients in order to maintain control
C. Only if the licensee contacts the listing broker in advance
D. Only if accompanied by the licensee
18. Which is least likely to be effective in a purchase loan offer defeating a cash offer if the offers are equal?
A. Waive the inspection
B. Make the dates more attractive to the seller
C. Hand delivering the contract to the listing agent
D. Waive the appraisal contingency
19. Should the buyer ever waive the appraisal?
A. Yes — only with government financing
B. Yes — on cash deals
C. With the informed consent of the buyer
D. Yes — if the loan is conventional
20. Is it appropriate to submit the buyer’s “story”?
A. Yes – but it should be prepared by the buyer and sincere
B. No – Money talks for the buyer
C. No – it can be a burden and a cloud that the seller needs to consider
D. Yes – but it should be edited by the licensee for conciseness
21. Should the buyer’s agent inquire about what the seller would like to see in the contract?
A. No – it compromises the buyer’s position
B. It doesn’t matter as the seller will simply counter with their needs and goals
C. No – the buyer should just take his/her best shot
D. Yes — and the seller should authorize the listing agent to cooperate – both parties’ interests may be served
22. What is a possible advantage to a buyer to an open-ended offer with no acceptance deadline?
A. A contract is not valid without a date for acceptance
B. The seller may not have time to act on other offers before they expire
C. The offer will still be valid if the seller rejects or counters and the other buyers reject and may be accepted as an “acceptable” offer
D. There is no advantage to the buyer
23. Why should the seller authorize disclosure of the nature of other offers received?
A. Disclosure might induce a better offer.
B. Disclosure will discourage low-ball offers
C. The seller should never authorize disclosure.
D. Disclosure violates MLS ethics rules
24. What factors most influence negotiation?
A. To recruit the agent to switch brokerage affiliation
B. To gain privileged information about the seller
C. The two agents should only communicate about the specifics of the offer as they represent different interests
D. To establish a rapport; this can help create a friendlier environment and goodwill for the buyer’s offer
25. Bank-owned property offers do NOT require the following:
A. Offer complete in every detail
B. Completion of all instructions
C. Selling broker’s contract with buyer
D. All required addenda must accompany offer
26. What does the term “short fuse” refer to?
A. Only a limited number of offers will be accepted for presentation to the seller
B. The buyer’s agent has a hot temper
C. The seller is given a relatively short deadline within which to act after the contract has been presented
D. The seller must act on all offers within 24 hours
27. The least important element of the contract as far as the seller is concerned is:
A. Availability of funding
28. What options should be looked at if the buyer’s offer is rejected in favor of another offer and the buyer still wants the property?
A. Move on
B. Submit another offer – maybe the seller will reconsider
C. Wait to see if the property comes back on the market
D. Negotiate a backup offer
29. A price escalation clause should NOT be:
A. Ever used in a contract
B. Subject to verification
C. Open-ended as to maximum price
D. Used if an FHA loan is anticipated
30. What is NOT an advantage of a backup contract to the buyer?
A. Pre-negotiated and documented offer saves time and effort if primary contract is terminated and backup activated
B. The buyer will not have to pay closing costs
C. Competition is eliminated
D. The seller will accept a lower price for the convenience of a backup
31. What areas have experienced the highest gain in prices recently?
A. Dallas, TX and Ft. Worth, TX
B. Detroit, MI and Toronto
C. San Francisco, CA and Boston, MA
D. Stockton-Lodi, CA and Houston, TX
32. Risks to the seller in submitting a counter offer include:
A. The original offer may be withdrawn as the buyer has moved on and found another house
B. The buyer may be offended and not respond
C. All of the answers are correct
D. The counter offer may be late and the original offer has expired and the buyer develops buyer remorse
33. Why should the buyer’s agent promote communication with the seller’s agent?
A. The two agents should only communicate about the specifics of the offer as they represent different interests
B. To establish a rapport; this can help create a friendlier environment and goodwill for the buyer’s offer
C. To recruit the agent to switch brokerage affiliation
D. To gain privileged information about the seller
34. Is there any recent evidence that, overall, hot sellers’ markets may be declining nationwide?
A. Yes – Existing home sales have decreased based on a study released by NAR in August, 2014
B. Yes – sales of foreclosures are increasing
C. No – investors continue to fuel the market
D. No – sales of existing homes continue to increase
35. What is generally considered a milestone for defining a hot sellers’ market?
A. The number of real estate licenses issued is increasing
B. Demand for homes is exceeded by inventory
C. Foreclosures are on the rise
D. Most homes are only on the market for 60 days or less
36. Has there been an effect on affordable housing in hot sellers’ markets?
A. More affordable condos are being converted
B. There are fewer apartments being built
C. The number of homes available to low and moderate income homebuyers have decreased
D. More federal aid is being committed to these areas to offset the negative effects
37. Are lenders changing underwriting based on credit score numbers?
A. Yes – Fannie Mae, Freddie Mac, and FHA have all lowered score requirements slightly
B. No – standards have remained the same since 2008
C. Yes – credit score requirements are increasing for all types of loans
38. Student loan debt in the U.S.:
A. Has increased, thus decreasing federal funding for government home loans
B. May be discharged in bankruptcy
C. Has remained constant over the past 10 years
D. Has soared, causing a loss to the housing industry of about 414,000 homes each year
39. Why might it be a good idea to show a seller competing listings when pricing the home?
A. It would be unethical to show another broker’s listing just for purposes of evaluation
B. It may convince a seller to be more competitive based on differences in the properties
C. It is not – they may be discouraged if the competition shows better and decide not to list
D. It is not a good idea – only sold comps should be used in determining value
40. Is a contingency for locating a replacement home a good idea for a seller to insist upon?
A. Yes – there may not be any replacement homes out there
B. Yes – in a hot sellers’ market, buyers will wait
C. They should be encouraged not to do so in order to be able to get more offers
D. No – you may not get a commission if they fail