chapter 4 quiz questions only – answers will be revealed with any Post-License subscriptions
1 of 10 – When developing a marketing plan for the CMA you should?
Include how often you intend to hold open houses.
Estimate the number of visitors you expect at each open house.
Include a “highest” and “lowest” suggested list price.
Estimate how long it will take for the house to sell.
2 of 10 – When determining market value of a home, “conformity” means?
That the homes in a particular neighborhood should be similar in size and style.
The homes in a particular neighborhood should have all been built by the same builder, at the same time.
The exteriors of the homes should be painted in the same color scheme and the landscaping should be similar.
If one home has a fireplace, they should all have fireplaces.
3 of 10 – If your sellers have painted their living rooms walls a bright blue, you should?
Say nothing and hope potential buyers like the color.
Compliment them on their “bold statement.”
Suggest they hang a large picture or tapestry that will cover the wall.
Suggest they paint over it with a more subtle, neutral color.
4 of 10 – When selecting comparable homes, which of these criteria should be the same or similar?
5 of 10 – What is one benefit you CANNOT offer to someone who lists with you?
The security of knowing that strangers will not be walking through the house alone.
A guarantee that the house will sell in 60 days or less.
Better exposure for the listing.
Someone who is familiar with the process and all the paperwork involved in selling a house.
6 of 10 – The benefit of including in your CMA similar homes that listed but did not sell is?
It keeps your client from getting his hopes up about selling his house quickly.
It makes your client aware that his property is overpriced.
The expired listings did not sell for reasons other than price.
It shows your clients that comparable but expired listings may have been overpriced.
7 of 10 – A house was listed for $400,000 and it sold for 93% of its listing price. There was no mortgage lien on the property. The brokers’ commission was 7% of the sales price. Other closing costs came to 1% of sales price. What was the seller’s net?
8 of 10 – Which of the following questions will not help you determine a home’s best list price?
How much do you think your home is worth?
What year was your home built?
How many bedrooms does your home have?
Does your home have a fireplace?
9 of 10 – In deriving a listing price for a seller, you have done a market search, but the comparable homes you have found have all been on the market for 6 – 9 months. You should?
Use the same criteria, but search homes that sold two years ago, since the market was better then.
Exclude “On the Market” houses altogether from your CMA.
Use the comparables’ values you found, but set the suggested listing price a little lower to account for the comparables’ longer time-on-market.
Use the comparables you found, and price the house as you normally would. Your client’s house is unique enough that it will still attract buyers.
10 of 10 – According to what theory should an aged house be demolished and replaced with high-rise condominiums?
The Pac-man Syndrome
Highest and Best Use
The Density Reduction Theory