Unit II Part 1

What's an effective pricing strategy when listing a home in a cold market?

Price the home below market value.

sending a letter introducing yourself to all of the individuals living in the area using TAD (Turnover, affinity, diversity) and placing ads in the community news

farming

FORCE methods of listing

farming owner sales referrals cold calling expired listing

In a sales transaction, what provides proof that the lender will actually fund the loan?

final loan approval

This section is where the buyer indicates whether or not a loan will be obtained, and if so, provides details about it.

finance

What section of the South Carolina sales contract protects a buyer's earnest money in the event the buyer can't obtain a loan?

finance

Purchasers usually moving out of a family home, an apartment, or a rental situation

first time home buyer

The transfer of the required amount of U.S. dollars within any required timeframe

good funds

In a South Carolina residential purchase transaction, which of the following parties is responsible for paying the deed preparation costs?

seller

Who does the agent assisting the buyer in a transaction represent if there's no buyer agency agreement?

seller

A binding, written contract between the potential property seller and a broker

seller representation agreement

deed preparation is the _______ cost

sellers

Which of the following requires that contracts for the sale of real estate be in writing?

statute of frauds

Sellers who refuse to budge on price and terms

stonewalling

Countering an offer, especially a good one, can have results the seller may not have anticipated. what is one possible risk?

the buyer could walk away

Bill's clients, the Morris family, are moving into a new South Carolina home. Prior to closing, they ask Bill about sex offenders in the area. What should Bill tell them?

"Check with local law enforcement agencies."

What is the seller agency agreement's purpose?

To identify the seller / seller's broker relationship's terms

What information do all listing agreements contain

-listing price -amount of commission to be paid -start and end date of listing

Manufacturers stopped using lead in paint in

1978

Under a South Carolina residential purchase contract, the property's purchase price must be paid in one of ______ ways.

3 financing cash combo of the two

How long are licensees and brokers required to keep copies of records pertaining to real estate transactions?

5 years

What is a buyer representation agreement?

A binding, written contract between the potential property buyer and a broker

what should a seller agent bring to a listing presentation

CMA listing contracts market comprables spreadsheet marketing plan

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 ______.

Decline the listing if the seller's price and your price analysis are too far apart.

What strategy can a licensee use when a seller client is presented with reasonable offers, but refuses to budge on price or terms?

Help the seller remember the goal of a closed transaction.

Why should you know when the seller can vacate the property?

If a buyer wants to close before the seller can vacate, the seller may need to rent it back from the buyer.

Which of the following is a true statement about a home warranty policy as it relates to a South Carolina sales transaction?

If included, it must be for a period of at least 12 months.

When buyers contact you for the first time, why is it important to ask how they found you?

It can help you determine what additional questions to ask.

Which of the following is a true statement about the seller's property condition disclosure statement in South Carolina?

It must be completed by the seller unless both parties waive the requirement.

What are the hurdles that most often delay or prevent closings?

Loans and appraisals, titles, and home inspections

In states where they're legal, for which type of listing or listings may a net listing be used?

Open, exclusive agency, or exclusive right-to-sell

The loan type and the amount of down payment impact _______.

The closing costs the seller may contribute

Prior to offering services to a potential buyer, why would an agent want to ask questions to pre-qualify a buyer?

To find out if the buyer is worth the agent's time

What is the buyer agency agreement's purpose?

To identify the buyer/buyer's broker relationship's terms

If buyer customers initially contact you because they saw your number on a yard sign, what could this mean?

This could end up being a dual agency situation.

What's the purpose of the financing contingency?

To protect the buyer in case the buyer cannot obtain financing

If a seller is concerned about an appraisal, what can a buyer do to address this need when structuring the offer?

Waive the appraisal.

You're helping your clients prepare a sales contract. What do you put in as the amount of earnest money?

Whatever amount the buyer wants

how must the property be identified in the contract?

You must use both the legal description and the street address of the property to identify it.

After a seller counters the buyer's original offer, what options does the buyer have related to the new offer?

accept counter reject

The parties agree that they haven't made any spoken agreements, and that the entire agreement between them is in the sales contract and its addenda and amendments.

agreement section of sales contract

When placing earnest money deposit with the closing attorney, what form might a deposit take?

any personal tender Earnest money in South Carolina can be paid using a personal check, cash, or through other means.

Which of the following would a home inspector note as a defect in a report due to its link to lung cancer?

asbestos

You should present the South Carolina Disclosure of Real Estate Brokerage Relationships to clients ______ they sign the correct agency agreement.

before

Any agreement signed by the parties pursuant to mediation is

binding

If one of the parties to a signed purchase contract dies before closing, the contract is

binding on that party's heirs

another word for default

breach

Parties agree to allow escrow to disburse commissions owed to the brokers at closing from the sales proceeds.

broker's compensation

Parties agree that brokers give no warranties or representation regarding property condition, title, zoning, and other matters.

broker's disclaimer

Generally, whose responsibility is it in South Carolina to investigate elevation and wetland issues of a property prior to closing?

buyer

inspection is the _______ cost

buyer

The licensed South Carolina attorney selected by the buyer to coordinate the transaction and closing

closing attorney

In what type of market could the buyer's strategy be to offer 10% below list price?

cold

Tiffany just obtained a list of all of the homeowners in an area. She checks the numbers to make sure they're not on the Do Not Call Registry, then starts making calls to see if they or anyone they know is interested in selling their home. What method is this?

cold calling

Call homeowners to determine whether they or anyone they know is interested in selling their home.

cold calling method

most common type of financing

combo of cash and lender financing

The listing agreement allows the seller to provide _______ for the broker to place signs and lockboxes, and to market the property for sale.

consent

The financing _______ states whether the purchase may be cancelled by the buyer without penalty if the buyer can't obtain a loan.

contingency

The listing agreement includes ________-related information.

disclosure

While buyers can't use a personal check to make the down payment, nor can they pay it at closing,__________ may be paid using a personal check.

earnest money

The final date when a contract party puts the last required signature and/or initials and date on the contract and delivers notice of same

effective date

3 types of listing agreements (discluding net listings)

exclusive exclusive right to sell open

An agreement that allows sellers to work with an agent while still trying to locate the buyer themselves is called an ________. If the sellers find the buyer, the sellers don't owe a commission to the agent.

exclusive agency agreement

allows the listing agent to list the property and receive a commission no matter who brings the buyer to the table.

exclusive right to sell agreement

Identify unsold properties approaching listing termination date; after the date passes, contact the seller about re-listing the property.

expired listing method

Any changes to the contract must be _________ by all parties to attest to their acceptance of those changes.

initialed and dated

net listings often involve a conflict of _____

interest

Both the property's __________ and its __________ must be included in the property section.

legal description and its street address

Which of these can restrict the amount a seller may contribute toward closing costs?

loan type and down payment

Parties agree to voluntarily attempt to settle a dispute with a mediator.

mediation

What could be potential environmental hazard concerns for a house built in 2002?

mold radon carbon monoxide emanating from furnace

A seller wants to sell the property for at least $400,000. If the property sells for more, that money will go to the listing broker as commission. this is an example of what kind of agreement

net listing

Another type of listing agreement allowed in some states, but not in South Carolina

net listing

an agreement in which the seller specifies a desired price for the property and agrees that the broker's commission will be any amount above that price

net listing

should a seller be present for as many showings as possible

no; their presence is off-putting to buyers

Parties state that if something isn't in the contract, they're not relying on it because it's not binding.

non-reliance

One party notifying the other party of an event or decision

notice

James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______.

open

An agreement that allows sellers to contract with multiple agents but only pay a commission to the agent who locates a buyer is called an

open listing agreement

Michael scours the local newspaper, looking for homes for sale without real estate professional representation. This isn't because he wants to buy the house, but because he wants to represent the seller. What approach is this?

owner sales

Contact sellers attempting to sell their own homes

owner sales method

When working in a hot market, many real estate professionals suggest that buyers not ask for ___________.

personal items

which is more reliable- prequalification letter or preapproval letter

pre-approval

More difficult to obtain- prequalification letter or preapproval letter

pre-approval letter

Includes language like "pending verification of buyer-provided information"

pre-qualification

what's always a factor with every listing presentation?

price

contacting prospective clients through previous clients, co-workers, and networks describes the ______ approach to finding listings.

referral

Receive prospective client names from other licensees, former clients or customers, industry professionals, attorneys, neighbors, etc.

referral method

Smaller homes with low or no maintenance are more desirable, possibly single-level properties or accessible condominiums

retirees

Your buyer clients had a home inspection done, and it turns out that the water heater is on its last legs and should be replaced immediately before it bursts. What advice do you provide to your buyers?

to ask the sellers to replace the water heater or issue a credit

Home owners whose children have moved out or who are downsizing due to financial or other reasons (such as divorce)

trade down

buyers that tend to be those looking for a bigger or newer home

trade up

types of buyers

trade up trade down retirees first time home buyer

Net listings can be written for exclusive right-to-sell, exclusive agency, or open listings. t/f

true

Sellers may enter into an exclusive or non-exclusive relationship with a licensee. t/f

true

net listings still have to be split with the buyer agent t/f

true

When preparing for a buyer presentation, what main purpose should you keep in mind?

trust building

TAD

turnover diversity affinity

Alison confirms that Brian's income and assets were verified when he obtained the pre-qualification letter. The letter should be provided to the sellers during the transaction process. But when?

when the offer is made

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 it