Multiple Offers, Counter-Offers, & Acceptance

Your client is ready to close on a new home, but when you checked yesterday, the seller still hadn't dealt with the foundation issue that the inspector found. What is your responsibility at this point? Ensure that your client knows that not all contingencies have been cleared. Make the seller fix the foundation issue. Report the seller and the seller's agent to the real estate commission. Threaten the seller's agent with a lawsuit if the problem isn't quickly fixed.

Ensure that your client knows that not all contingencies have been cleared.

If a buyer includes a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000," the offer is considered what type of offer? Dynamic Elevator Escalator Flexible

Escalator

What is put at risk if a buyer misses a contingency deadline? The agent's license The broker's reputation The buyer's earnest money The sales price

The buyer's earnest money

When a seller counters the buyers' original offer, what options do buyers have? They can accept, counter, or reject the offer. They can accept the offer and counter back. They can only accept or reject the counter-offer. They can only accept the counter-offer.

They can accept, counter, or reject the offer.

If your clients are in a competitive bidding situation and want to include multiple contingencies in their offer, what should you say to them? "Contingencies kill deals." "Great idea. This will help our offer stand out." "Let's evaluate which contingencies matter most to you and consider omitting the rest." "To be competitive, you should remove all contingencies."

"Let's evaluate which contingencies matter most to you and consider omitting the rest."

What is it called when all parties sign a contract, but before the seller's acceptance is delivered to the buyer? Acceptance Binding acceptance Contract closing Exercise an option

Acceptance

Shannon doesn't understand why her agent wants her to add a contingency to her purchase offer. Her agent, Scott, explains that the property is in a transitional neighborhood, and it might be overpriced. What type of contingency is Scott recommending? Appraisal Financing Home sale Inspection

Appraisal

Which of the following is an example of an escalator offer? Buyer offers $650,000. Seller accepts. Buyer offers $650,000. Seller counters at $675,000. Buyer accepts. Buyer offers $650,000. Seller counters at $675,000. Buyer counters back at $665,000. Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000.

Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000.

Which offer would be the most appealing to a seller? A full-price offer waiving inspection, conventional financing with 20% down, closing in 45 days. An all-cash offer $15,000 below list price, closing in two weeks. An offer $10,000 over list price, contingent upon appraisal and inspection, conventional financing with 20% down, closing in 30 days. It depends on the seller's needs and motivations.

It depends on the seller's needs and motivations.

When a contract doesn't provide specific dates for when the terms need to be met, what should the parties assume regarding performance of the contract? Performance must take place within a "reasonable time." The contract will be complete when all of the parties have met their obligations and not before. The courts will decide if the parties have met their respective contractual obligations. This contract provides an opportunity to sue for breach of contract.

Performance must take place within a "reasonable time."

When multiple offers are received, which one of the following is something a licensee should do? Encourage the seller to accept the highest price offer. Give preference to the first offer. Prepare a net proceeds statement for the highest-price offer. Prepare net proceeds statements on all offers.

Prepare net proceeds statements on all offers.

Eleanor is moving from a starter home into something a little larger. Her agent has cautioned her against making the offer on the new place contingent on the sale of Eleanor's starter home. Why the caution? Eleanor might want to keep and rent out her smaller home as an income source. Eleanor should include a minimum of two contingencies to let the sellers know she is serious. Eleanor's lender might be wary of contingencies. Sellers would view an offer without that contingency as a stronger offer.

Sellers would view an offer without that contingency as a stronger offer.