Ch 22: Presenting Offers and Counteroffers

Question 1

Why is it not a good idea to present the offer price over the phone?

Answer 1

Price is only one aspect of the total picture. Often the other terms, along with the offering price, make the offer much more acceptable than price alone would indicate.

Question 2

Why review the listing efforts when presenting an offer to your client?

Answer 2

A review is important because it helps set the stage for the sellers’ reaction to the offer you’re about to present.

Question 3

What are two disadvantages to digitally-sent offers?

Answer 3

By sending offers and counteroffers digitally, there is a greater chance for misunderstanding and for “agent abandonment” issues to arise on the part of your client.

Question 4

What is another name given to video phoning?

Answer 4

Video calling or video chat

Question 5

What document is required by the lender from the settlement company that says the settlement company will reimburse the lender if the settlement company made a mistake?

Answer 5

Closing Protection Letter

Question 6

What section shows the estimated net amount the seller can expect to walk away with from the sale?

Answer 6

Estimated Net Proceeds to Seller

Question 7

What fee is charged to search the U.S. Treasury Department database to make sure all parties involved in the real estate transaction are not engaging in prohibited transactions?

Answer 7

“Patriot Act” Search

Question 8

Who is required to prepare a Seller’s Estimated Costs sheet?

Answer 8

The seller’s agent

Question 9

Which party in a For Sale by Owner transaction agrees to a One-Time Showing Agreement?

Answer 9

The For Sale by Owner Seller

Question 10

What is the primary advantage of a first-in-line backup contract?

Answer 10

The client has eliminated any other competition for the property. Once a backup offer is accepted, the client is next in line to buy the house.

Question 11

Under what circumstance do you NOT have to present a backup offer?

Answer 11

By law, a backup offer must be presented to the seller unless they have told you otherwise in writing.

Question 12

What type of agent represents both the buyer and the seller?

Answer 12

Consensual dual agent

Question 13

What does the lender require the settlement company to provide stating that the settlement company will reimburse the lender if they make a mistake?

Answer 13

A closing protection letter

Question 14

What should an agent put together that will show the sellers how much cash they will get from an offer?

Answer 14

A seller’s net sheet

Question 15

What is a term used to describe a class of property owned by a lender after an unsuccessful sale at a foreclosure auction?

Answer 15

An REO

Question 16

What type of agent represents only one party in a sale and shares that responsibility with a primary agent?

Answer 16

A subagent

Question 17

What does an offer become when all the conditions, listed by the prospective buyer is accepted by the seller?

Answer 17

A valid real estate contract

Question 18

If an agent believes an offer is fair and reasonable, what should his or her goal be?

Answer 18

To get the seller’s acceptance

Question 19

What are many agents now using in order to maintain “live” contact with out of town clients?

Answer 19

Video chatting

Question 20

Why is it not a good idea for an agent to present an offer over the phone?

Answer 20

The sellers can’t see the big picture of all the terms.

Question 21

What happens to a backup offer when the primary offer falls through?

Answer 21

It becomes a purchase agreement.

Question 22

What is per diem interest?

Answer 22

Interest per day

Question 23

On average, how much should a buyer expect to pay for notary fees?

Answer 23

$35-$50

Question 24

What is the easiest part about working with FSBO sellers?

Answer 24

They’ve already done much of the listing efforts.