Section 9_Unit 1_Exam

Licensee Larry is asking a potential seller client some qualifying questions. If Larry decides to pursue the customer as a client, what's the best way for him to wrap up his qualifying questions?

"Would Wednesday at seven o'clock be a good time for me to come by and show you what I can do to get your home sold?"

You average one client from every seven leads, and each client represents 80% of a closed transaction. Each transaction you close has an average dollar value of $9,000. How much can you expect to earn from every seven leads?

$7,200 $9,000 x .80 = $7,200

Which of the following properties is a REO?

A duplex that a lender has tried to sell by foreclosure and failed

Contacting homeowners to determine whether they or anyone they know is interested in selling describes the ______ approach to finding listings.

Cold calling

Tamara has identified a neighborhood where she'll concentrate her real estate activities. She starts by sending postcards to all residents, then walks door to door to introduce herself. Over time, she sends more communications, participates in neighborhood events, and eventually becomes the "go to" real estate professional for the neighborhood. What approach has she used?

Farming

Maura is doing a market analysis for a distressed property. Which of the following properties would make a good comparable?

Foreclosed property

Avery obtained a home loan from Happy-to-Lend Bank. He can no longer afford to pay his mortgage, but he wants to avoid foreclosure, so he listed it with Campbell Realty to help him sell it for less than he owes. He receives an offer from a buyer. Whose consent does Avery need to complete the sale?

Happy-to-Lend Bank

You want to make $50,000 in a year from your real estate business. You know that about 15% of the leads you get turn into clients. You earn an average of $8,000 on every closed transaction. Is this everything you need to know to use a funnel to determine how many leads you need to generate to get your $50,000?

No, you also need to know the percentage of clients who turn into closed transactions.

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

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

Referral

Qualifying a seller before scheduling a listing presentation can help a licensee ___________.

Target the listing presentation to the seller's needs

Which of these actions would cause a property to become an REO?

The bank doesn't get an acceptable bid at a foreclosure sale and takes ownership of the property.

To see if you know your stuff, your new managing broker asks you what a short sale is. You do know your stuff, so you answer, "______."

The sale of a property at an amount less than is owed

Which of these is a reason that a licensee would qualify sellers before deciding to sign them as clients?

To evaluate the seller's motivation to complete the sale