5.5 Exam
What's the best strategy for pricing a home?
Prepare a detailed comparative market analysis and base the price on recent comparable sales.
After you've made a professional listing presentation and the seller has declined to use you as a listing agent, what's the best practice?
You should accept the outcome either way.
If, after seeing your carefully prepared comparative market analysis, a seller doesn't agree with the price range you prepared in your listing presentation, your best practice would be to ______.
You should accept the outcome either way.
Which of the following statements is true about the listing presentation?
You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property.
Demographics impact the housing market. Which of the following is a true statement?
An increase in the number of retirees in a given population would negatively impact the demand for large, single-family homes.
What's the best advice when challenging an appraisal?
Be specific and concise about why the value opinion is different in your mind.
An agent has a seller who wants to list the property at $550,000. The market has taken a downturn, and the fair market value is estimated at $495,000. What is the best approach for this listing?
Explain the benefits in the long run of entering the market at a fair price.
At a listing appointment, licensee Chet asks Sam, the seller, if his property is his own home or an investment property. Why would Chet ask this?
If the home is his own, he's likely to be purchasing a new one, so Chet has a chance to land two transactions.
When a property is overpriced, what happens?
It may become stale on the market, resulting in low-ball offers.
Getting the best price is always a factor for a seller, but the ______ that it actually would sell for must be another consideration.
Market price
What happens when an appraiser determines a property's value to be less than the pre-approved loan amount?
Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money.
A property has been listed on the market for four months with no offers. Finally, a buyer makes an offer that is 18% less than the list price. How was this property likely priced when it first hit the market?
Overpriced
Many market conditions impact housing prices. Which of the following is a true statement?
Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up.
Why is it so important to properly price a property when it first enters the market?
The first several weeks are crucial because they're the best chance for the property to sell.
Why might a licensee want to make two visits to the property as part of a listing presentation?
To use information from a tour to prepare the CMA
Supply and demand determine competition within a market. Which of the following is a true statement?
When there are fewer houses on the market, sellers can demand more for their properties.