Chapter 1: Starting Your Real Estate Career

Question 1

1. The real estate market could best be described as being
A. perfect
B. not influenced by emotion
C. uninfluenced by external factors
D. stratified

Answer 1

D. Stratified

Question 2

2. Product differentiation means
   A. the difference between a mobile home and a manufactured home
   B. that similar homes can be entirely different because of amenities, location, and condition
   C. stick-built homes are different from prefab homes
   D. none of the above

Answer 2

B. That similar homes can be entirely different because of amenities, location, and condition

Question 3

3. When interest rates are high, a seller can enhance the value of her home by
A. seeking only an all-cash sale
B. painting the exterior of the home
C. offering low-cost seller financing
D. none of the above

Answer 3

C. Offering low-cost seller financing

Question 4

4. A salesperson’s use of the MLS
   A. expands her knowledge of the local marketplace
   B. allows a more accurate assessment of a given property’s true market value
   C. allows the licensee’s customer to make a more informed buying decision
   D. all of the above

Answer 4

D. All of the Above

Question 5

5. Salespersons sometime work in teams for all of the reasons except
   A. more members mean better availability of someone to meet buyers’ and sellers’ needs
   B. better cash flow because of a greater likelihood that someone on the team is selling something every month
   C. having fewer people available to help in an area where help is needed
   D. better utilization of each team member’s time

Answer 5

C. Having fewer people available to help in an area where help is needed

Question 6

6. Successful real estate teams
   A. put the partnership agreement in writing
   B. make the term of the partnership for a relatively short, finite time period, unless extended by mutual consent
   C. clearly set out the duties and responsibilities of each member of the team
   D. all of the above

Answer 6

D. All of the Above

Question 7

7. All of the following can affect your attitude, except
   A. being around negative agents in your office
   B. a strong belief in yourself
   C. listening to motivational tapes and CDs
   D. the number of licensees in your office

Answer 7

D. The number of licensees in your office

Question 8

8. Which of the following is not an exact goal?
   A. I will make personal visits to four For Sale by Owners on Tuesday.
   B. I will send a mailing to my entire farm area on Friday of next week.
   C. I will have lunch with a successful licensee in my office this week.
   D. I will start to telephone prospect soon.

Answer 8

D. I will start to telephone prospect soon

Question 9

9. To be effective, goals should be
A. specific
B. attainable
C. in writing and visible to you
D. all of the above

Answer 9

D. All of the Above

Question 10

10. When planning each day, you should
    A. not go to bed at night until your next day is planned and in writing in your appointment book
    B. prioritize your activities to maximize the time spent with decision makers, or A time
    C. minimize the amount of D time activities
    D. all of the above

Answer 10

D. All of the Above

Question 11

Broker

Answer 11

An agent who earns income by arranging sales and other contracts. A real estate broker is an individual licensed by the state of California to arrange the sale or transfer of interests in real property for compensation.

Question 12

MLS

Answer 12

A service provided by limited agency brokers offering only MLS access to sellers. (See Alternate Fee Listings.)

Question 13

National Association of Realtors

Answer 13

NAR

Question 14

SOI

Answer 14

sphere of influence

Question 15

Successive Approximation

Answer 15

the process of making small but precise course corrections.