Ch 22: Presenting Offers and Counteroffers Flashcards
Why is it not a good idea to present the offer price over the phone?
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.
Why review the listing efforts when presenting an offer to your client?
A review is important because it helps set the stage for the sellers’ reaction to the offer you’re about to present.
What are two disadvantages to digitally-sent offers?
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.
What is another name given to video phoning?
Video calling or video chat
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?
Closing Protection Letter
What section shows the estimated net amount the seller can expect to walk away with from the sale?
Estimated Net Proceeds to Seller
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?
“Patriot Act” Search
Who is required to prepare a Seller’s Estimated Costs sheet?
The seller’s agent
Which party in a For Sale by Owner transaction agrees to a One-Time Showing Agreement?
The For Sale by Owner Seller
What is the primary advantage of a first-in-line backup contract?
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.
Under what circumstance do you NOT have to present a backup offer?
By law, a backup offer must be presented to the seller unless they have told you otherwise in writing.
What type of agent represents both the buyer and the seller?
Consensual dual agent
What does the lender require the settlement company to provide stating that the settlement company will reimburse the lender if they make a mistake?
A closing protection letter
What should an agent put together that will show the sellers how much cash they will get from an offer?
A seller’s net sheet
What is a term used to describe a class of property owned by a lender after an unsuccessful sale at a foreclosure auction?
An REO
What type of agent represents only one party in a sale and shares that responsibility with a primary agent?
A subagent
What does an offer become when all the conditions, listed by the prospective buyer is accepted by the seller?
A valid real estate contract
If an agent believes an offer is fair and reasonable, what should his or her goal be?
To get the seller’s acceptance
What are many agents now using in order to maintain “live” contact with out of town clients?
Video chatting
Why is it not a good idea for an agent to present an offer over the phone?
The sellers can’t see the big picture of all the terms.
What happens to a backup offer when the primary offer falls through?
It becomes a purchase agreement.
What is per diem interest?
Interest per day
On average, how much should a buyer expect to pay for notary fees?
$35-$50
What is the easiest part about working with FSBO sellers?
They’ve already done much of the listing efforts.
