Course 2 Quiz 9-12
A buyer typically pays what amount in earnest money...?
1 percent (%) of the purchase price
What does a lender typically want to see as a front-end ratio for a borrower...?
28% percent
What does a lender typically want to see as a back-end ratio for a borrower...?
36% percent
Lenders typically consider long-term debt as debt that will not be paid off in at least...?
6 months
Which of the following is an example of a customer type a real estate agent may experience in their practice...?
A silent prospect An impulsive prospect An analytical prospect D) All of the above
What can an agent do to establish a better rapport with a buyer who has an aggressive personality type...?
Agree with the buyer
Farmer Mac is primarily responsible for purchasing...
Agricultural loans
A home warranty will protect which of the following for the first year of occupancy...?
Appliances HVAC Plumbing fixtures D) All of the above
When does the listing agent typically present an offer to the seller...?
As soon as the offer is received
Which of the following ratios by a lender indicates what portion of a person's monthly income goes toward paying debts....?
Back-end ratio
The Federal Reserve System is under the control of the...?
Central Board of Governors
To mingle or mix, for example, a client's funds in the broker's personal or general account, is known as...?
Commingling
The unlawful appropriation of another's property or funds is known as...?
Conversion
What questions may a lender ask when trying to pre-qualify a borrower...?
Estimated income Assets Estimated expenses D) All of the above
A desirable neighborhood will typically have an abundance of active listings...?
F (False)
An institutional lender is not subject to government regulations...?
FALSE
Buyers and sellers are always open to solicitation...?
FALSE
Buyers should make an offer immediately after viewing a property...?
FALSE
Buyers typically know exactly what type of property they want to buy...?
FALSE
Most offers by a buyer get accepted by the seller...?
FALSE
Most prospective buyers purchase the initial house they inquiry about...?
FALSE
Objections from the buyer are an indication that the buyer is not serious about buying...?
FALSE
Once a buyer's offer is accepted, their deposit is non-refundable...?
FALSE
Real estate is considered a liquid asset...?
FALSE
Renting a home offers more responsibility compared to owning a home...?
FALSE
Termite inspections are required on all homes built prior to 1978...?
FALSE
Multiple counter-offers are illegal in California...?
False
Real estate is a liquid asset...?
False
The Federal National Mortgage Association is also known as...?
Fannie Mae
Which of the following is an example of a government sponsored enterprise...?
Fannie Mae Freddie Mac Ginnie Mae D) All of the above
Which of the following operates in the secondary mortgage market...?
Fannie Mae Freddie Mac Ginnie Mae D) All of the above
Which of the following refers to an agent who is assigned to answer phone calls from prospective buyers that call the brokerage office...?
Floor Time
The Federal Home Loan Mortgage Corporation is also known as...?
Freddie Mac
A borrower's total monthly mortgage payment divided by their gross monthly earnings equals a lender's...?
Front-end ratio
The buyer's agent should do which of the following for their client...?
Fully explain their client's offer
The Government National Mortgage Association is also known as...?
Ginnie Mae
Which type of income is typically used in a lender's front-end ratio...?
Gross Income
Which of the following serves as insurance for the homebuyer...?
Home warranty
In a seller's market, prices generally....?
Increase
Which if the following is a disadvantage of owning a home...?
Increased expenses
A seller must provide the buyer with all necessary disclosures during the...?
Inspection period
Which of the following is considered a tax deduction...?
Interest paid on a mortgage
The percentage of a sum of money charged for its use is known as a/an...?
Interest rate
Which of the following is a common contingency utilized in a purchase contract...?
Loan contingency
What should a buyer be prepared to do after making an offer on a house...?
Make a down payment
Which of the following can be done to better relate to a client...?
Model the client's personality type
Where can agent's find buyer leads...?
Open houses Calls from 'For Sale' signs Online advertising D) All of the above
What types of questions should be asked to buyers who have a quiet personality...?
Open-ended questions
Sales involves which of the following...?
Persuasion
Which of the following can an agent do to appeal to a buyer's sense of sight...?
Point out the great views
Which of the following should agents know about their target market...?
Popular local restaurants Schools in the neighborhood Neighborhood amenities D) All of the above
Which of the following is a step above pre-qualification...?
Pre-approval
A formal application is needed to obtain which of the following from a lender...?
Pre-approval letter
Ideally, an offer on a property should be submitted with which of the following....?
Pre-approval letter from a lender
Which of the following involves a lender verifying the purchaser's credit, down-payment, and employment history...?
Pre-approval process
Which of the following is given by a lender to a purchaser stating that he/she prequalifies for a loan...?
Pre-qualification letter
What is a typical reason why people choose to buy a home rather than rent...?
Pride of ownership Appreciation Tax benefits D) All of the above
Which of the following can be done to get a client to open up more about their needs and desires...?
Recite facts about a property Ask open-ended questions Tell the client more about yourself D) All of the above
A broker's commission is typically based on a percentage of the...?
Sales price
From the real estate agent's perspective, selling real estate involves which of the following...?
Selling the owner on the listing Selling the buyer on the offer Selling the seller on the acceptance D) All of the above
Which of the following is received from a prospective buyer who calls an agent after seeing their number on a 'For Sale' sign...?
Sign call
If there are not too many active listings in the marketplace, the listing agent may be able to increase the listing price...?
T (True)
A buyer's agent should run comps on a property prior to their client making an offer...?
TRUE
A counter-offer voids the original offer...?
TRUE
A prospective buyer who calls an agent after seeing a 'For Sale' sign generally cannot afford the property...?
TRUE
A prospective buyer who calls an agent after seeing their ad in a newspaper can generally afford to spend more than the listing price of the property...?
TRUE
A real estate agent should focus on educating their clients rather than selling to their client...?
TRUE
A real estate professional should focus on selling their services...?
TRUE
A seller will typically receive more offers in a seller's market compared to a buyer's market...?
TRUE
Agents should try to setup an immediate phone call with new email leads...
TRUE
An appraisal contingency is often found in residential purchase contracts...?
TRUE
An impulsive buyer tends to make quick decisions...?
TRUE
Buying a home is riskier than renting a home...?
TRUE
Escrow is opened after a prospective buyer's offer is accepted by the seller...?
TRUE
Home inspections are required when qualifying for an FHA loan...?
TRUE
Listing agents have a duty to protect their client from fraudulent practices...?
TRUE
Listing agents must disclose to buyers if there is a multiple counter-offer situation...?
TRUE
Most homebuyers tend to buy with their emotions...?
TRUE
Most prospective buyers who attend an open house do not make an offer on the house...?
TRUE
Real estate agents must always put their client's interests before their own...?
TRUE
Riskier financing demands a higher interest rate...?
TRUE
The first goal when speaking with a new lead is to get their contact information...?
TRUE
The real estate market is cyclical...?
TRUE
Unless stated otherwise, the buyer's agent has the right to present an offer in-person...?
TRUE
A real estate agent is not allowed to give ...........advice to their clients?
Tax
In addition to a home inspection, what other inspection can a buyer obtain...?
Termite inspection Septic inspection Well inspection D) All of the above
Which of the following personality types typically wants to know the details of the deal...?
The analytical personality type
Who typically pays for the home inspection...?
The buyer
This personality type often demands that the agent education the buyer...?
The impulsive personality type
A buyer may back out of a purchase contract during what period..?
The inspection period
Where do most home buyers begin their search for a new home...?
The internet
Who typically presents an offer to the seller...?
The listing agent
In making a counter-offer, the seller may counter which of the following terms...?
The offer price The proposed occupancy date The amount of earnest money required D) All of the above
Which of the following is the most common objection to a buyer's offer...?
The price
What is typically used as the escrow instructions for a transaction...?
The purchase contract
When a listing agent presents an offer to the seller, which of the following information is described...?
The sales history of the listing Information about the buyer The terms of the offer itself D)All of the above
Which of the following parties typically pays the broker's commission...?
The seller
This personality type often demands the agent to build trust with the buyer...?
The suspicious personality type
Which of the following is an example of an open-ended question...?
What do you think of the house?
When should an agent follow-up with a buyer to begin the closing process...?
When the agent receives a buying signal from the buyer