30 Hr Section 2 Quizzes

when using the farming approach, turnover is a key factor when identifying a neighborhood. Which statement best describes turnover?

an area with a fair amount of listings - not too many, not too few

which statement about lead-related health problems is true? A) Lead can be traced to senioritis. B) Lead causes blindness upon contact with the eyes. C) Lead is associated with coronary heart disease. D) Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

An exclusive right-to-sell agreement provides the ________ with a commission no matter who brings the buyer to the transaction. A) Buyer's agent B) Cooperating agent C) Listing agent D) Sub-agent

listing agent

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

Seller Jeremiah has no cash on hand, but the buyers have outlined some repairs they want made in order to close on the purchase. Which of the following is his best option if he wants this transaction to close?

offer a seller credit to cover the cost of the repairs

In what type of market is pricing a home below market value an especially good strategy, as buyers are scarce and unlikely to consider at or above-market homes? A) Cold market B) Hot market C) Neutral market D) Warm market

A) Cold market

What's the best way to explain to sellers why you won't lower your commission rate? A) "My broker won't allow me to lower my rate." B) "My fee is based on the services I provide." C) "This is the industry standard." D) "This is the standard rate for this market."

B) "My fee is based on the services I provide."

What's the best way for a licensee to prevent the potential issue with sellers of believing that a property has sold too quickly or took too long to sell? A) Advise the seller to file a complaint with the local association of REALTORS® if they're unhappy with the service received B) Educate sellers about why a list price has been recommended, and the effect of current market conditions on the length of time a property takes to sell. C) Explain that real estate is a complicated game with many factors affecting the length of time a property takes to sell. D) Keep a record of the number of hours spent on marketing each property, and show that to the seller.

B) Educate sellers about why a list price has been recommended, and the effect of current market conditions on the length of time a property takes to sell.

Which of the following is a common issue licensees can expect from sellers? A) Donating the property to charity B) Haggling over commission C) Insisting on putting the listing into the MLS personally D) Tiered bonuses

B) Haggling over commission

Whoa—this market is hot, hot, HOT! You've had five offers come in since you listed your seller client's home yesterday. Of the options listed, which is the best strategy? A) Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed. B) Have all buyers submit their "highest and best" offer, then help the seller decide which offer is most appealing. C) Leave it on the market for another three days to allow time for even more offers to come in. D) Reject the offers and put the home back on the market for the amount of the highest offer.

B) Have all buyers submit their "highest and best" offer, then help the seller decide which offer is most appealing.

Your seller client is very attached to her home and has not agreed with any price ranges you've presented. She insists on pricing the home at 15% above the current market, claiming the home has a certain air about it that is priceless (but 15% higher is a start). How should you advise this seller? A) Advise your client she wait until the market comes up to meet her expectations to sell. B) Be honest and realistic about expectations, but do as the seller wishes regarding the price. C) Be kind but firm. Advise the seller that the home's value is dictated by the market, not her perception. D) Tell her if she can't be realistic, she needs to find a new agent because you're done arguing.

C) Be kind but firm. Advise the seller that the home's value is dictated by the market, not her perception.

Jonathan wants to move to Las Vegas as soon as possible to start a new career as a blackjack dealer. He wants to sell his house immediately. What should you do as his listing agent? A) Advertise the home as "Must sell ASAP!" B) Convince him to let you keep it on the market after he's gone so you can wait for a higher offer. C) Suggest that he accept a lower offer, even if it means a reduced commission for you. D) Tell buyers' agents that he wants to move as soon as possible.

C) Suggest that he accept a lower offer, even if it means a reduced commission for you.

Which of the following is a legitimate reason to counter an offer? A) A $50 curtain B) A cracked tile C) A free-standing fire pit D) Price

D) Price

In a hot market, when all other sellers are listing at or above market rate, what pricing strategy will likely induce a bidding war? A) Pricing far above market value B) Pricing in line with comparable properties C) Pricing just above market value D) Pricing just below market value

D) Pricing just below market value

Which of the following actions should be taken when holding an open house? A) Limit advertising. B) Only be present to open and close the house. C) Schedule the open house for a day and time when the owner can be present. D) Schedule the open house soon after the property hits the market.

D) Schedule the open house soon after the property hits the market.

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?

Owners sales The owner sales approach involves not only contacting homeowners selling their own property, but also convincing them that they'll achieve a better outcome by listing with a real estate licensee.

which of the following is true of agency agreements?

a listing agreement is an express agreement An express agreement is committed to writing. You can't list someone's property to sell without the seller's express written agreement.

an exclusive right-to-sell agreement must include ______. A) A protection clause B) A start and end date for the listing period C) The name of the attorney who drafted the agreement D) The seller's requested closing date

a start and end date for the listing period

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

when finding listings, which statement describes the cold call approach?

contacting homeowners to determine whether they or anyone they know is interested in selling With the cold call approach, the licensee generally has no prior relationship with the homeowner and doesn't even know whether he's interested in selling.

When finding listings, which statement describes the cold call approach?

contacting homeowners whose listing contracts have ended without a sale

When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign? A) Exclusive agency B) Exclusive right to collect commission C) Exclusive right to sell D) Net listing

exclusive right-to-sell

which one of the following tasks must licensees perform for seller clients?

ensure that the buyer's earnest money is deposited

you're representing a seller. Which of the following is one of your duties?

getting the seller an acceptable price and terms

when finding listings, which statement describes the owner sales approach?

identifying properties being sold by owners and persuading them to list with a licensee.

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 ______. A) Exclusive agency B) Exclusive right to sell C) Open D) Seller's choice

open

Patsy's home had been on the market for five weeks, and two brokers had buyers who were ready to make offers. If Patsy accepted one of those offers, the corresponding broker would be the only one to earn a commission. What type of listing does this describe? A) Exclusive agency B) Exclusive right to sell C) Net listing D) Open listing

open listing

Ann is a South Carolina licensee. Which of the following statements most accurately describes her need to disclose that she's a principal to a real estate transaction? A) She doesn't need to disclose when she's a principal to the transaction, regardless of circumstances. B) She must disclose she's a principal after the property has been on the market for 30 days. C) She must disclose she's a principal to the transaction if the sales price is more than $200,000. D) She must disclose whenever she's a principal to the transaction.

she must disclose whenever she's a principal to the transaction

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's square footage and potential as an investment. Which of the following is true about this situation?

the Stinsons and Vera have brokerage relationship agreement

Bernie represented Oscar in the sale of Oscar's home. They signed an exclusive right-to-sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie a commission? A) No, because he found his own buyer. B) No, because Oscar retained his exclusive right to sell. C) Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer. D) Yes, because Oscar is not a real estate licensee.

yes, because "exclusive right-to-sell" means Bernie gets paid no matter who finds the buyer.