Ch. 23 - Best Practices of Real Estate Negotiation

According to the "Allowances" step of the CALM Negotiation Principle, what should licensees do? Take into account the unique personalities and perceptions each party brings to the bargaining table. Make allowances for these things only if they receive the same professional courtesy from the other party. Be ready to make the necessary concessions in their client's position to conclude negotiations successfully. Try to downplay their own "negative" personality traits as much as possible during the offer/counteroffer process.

Take into account the unique personalities and perceptions each party brings to the bargaining table.

What is the impact to excessive talking during negotiations? Increases offer acceptance Decreases objections Demonstrates professionalism Turns people off

Turns people off

When does a counteroffer become a contract? 24 hours after the original offer was presented When the party receiving the counteroffer signs it When the buyer's agent accepts the counteroffer When the seller's agent signs the offer

When the party receiving the counteroffer signs it

When does an offer become a contract? When the cooperating agent signs the offer. When the seller receives the offer. When the agent presents the offer. When the seller signs the offer.

When the seller signs the offer.

Which communication skill isn't used as much as the others during the offer/counteroffer process? Nonverbal Written Verbal Interpersonal

Written

Dual Agency allows for limited marketing opportunities than single agency. broader marketing opportunities than single agency. restricted negotiations between buyer and seller. limited oversight by the brokerage.

broader marketing opportunities than single agency.

The best position to take after presenting your client's offer is to avoid any discussion. take an "all or nothing" approach. listen and understand concerns. state your opinion.

listen and understand concerns.

Good listening skills require the agent to explain a position with emotion. use facts, statistics, and evidence. use opinions and emotions. express his or her viewpoints often and directly.

use facts, statistics, and evidence.

Which nonverbal cue demonstrates agreement? Leaning forward Finger tapping Excessive pauses Gazing upwards

Leaning forward

What is the best strategy for dealing with another party that is not acting professionally and courteously? Seek an apology. Respond with the same behavior. Report the behavior to the cooperating brokerage. Make allowances for the behavior.

Make allowances for the behavior.

What gives an agent advantage over his or her competition? Expressing his or her opinion often Mastering the art of listening Talking over the competition Interrupting often to make a point

Mastering the art of listening

If buyers reveal to a licensee what their highest property bid will be during negotiations, should the licensee tell the seller? Only if the licensee is the seller's single agent. Only if the licensee is the seller's transaction broker. Information such as this must be kept confidential, no matter which party the licensee represents. Only if the licensee is the seller's limited consensual dual agent.

Only if the licensee is the seller's single agent.

What frequently gets in the way of effective negotiations? Facts Value Personalities Legal requirements

Personalities

During negotiations, licensees need to keep their communication goals in mind. Which of the following is NOT one of those goals? Present their client's position in the best possible light. Team up with the other party to close the sale once an agreement is reached. Reach an agreement at all costs. Build a rapport with the other party while simultaneously working in their client's best interests.

Reach an agreement at all costs.

What did Journalist Robert Estabrook laud as the most valuable diplomatic skill? Find the middle ground. Communicate, advocate and negotiate. Disagree without being disagreeable. Make the same allowances for others as you would for yourself.

Disagree without being disagreeable.

Which situation promotes greater marketing opportunities? Dual Agency Single Agency FSBO Contact Negotiations Exclusive Agency

Dual Agency

Nonverbal communication is sometimes referred to as what? Silent language Art of manipulating people Upper hand of negotiation Art of reading people

Art of reading people

The CALM Negotiation Principle refers to what? Connection, Allowances, Listening and Middle ground Communication, Art of Listening and Mutual benefit Connection, Allowances, Listening and Meet in the middle Communication, Allowances, Listening and Middle ground

Communication, Allowances, Listening and Middle ground

When a seller rejects and then revises the terms of a buyer purchase agreement, this is known as what? Second offer Proposal Counteroffer Contract

Counteroffer

Which of the following is NOT a listening tip? Don't interrupt. Concentrate on what is being said. Express your opinions. Keep your opinions to yourself.

Express your opinions.

Which technique is used to demonstrate that you understand the other person's position? Take notes. Take long pauses. Ask a lot of questions. Give a summary.

Give a summary.