Chapter 11: From Offer To Closing Flashcards
When preparing to present an offer to the sellers, what kinds of supporting information can be helpful?
A new Estimate of Sellers’ Proceeds, using the current offering price as the basis and an updated competitive market analysis, would be helpful.
What is important to remember about multiple offers?
All multiple offers must be presented at the same time; if you know of an offer that is coming in, you must tell the sellers at the time you present the current offer; if you know of any verbal offers, share that information with the sellers also.
When making your presentation, what topics should you cover?
The history of the listing activities, information about the buyers and then the offer itself.
Why is it important to talk to the sellers about the buyers?
This is an opportunity to assure the sellers that these buyers will appreciate and care for the home.
What actions can the sellers take regarding the purchase offer?
They can accept it outright, reject it totally, or submit a counteroffer.
What is important for the sellers to know about a counteroffer?
It’s important that sellers realize that a counteroffer is actually a rejection of the original offer, and by submitting one, they are giving the buyers an easy out if they want one.
Ben and Blanche receive a $200,000 offer on their home which is listed at $208,000. They were counting on a full-price offer and are very disappointed. What approach can their agent take to change the sellers’ perception of the offer?
The agent can tell Ben and Blanche that the $200,000 offer represents 96% of their asking price. This takes a positive view of the price. The agent should point out that price is only one aspect of the offer and then go on to discuss the other terms of the agreement that may appeal to the sellers.
When does a purchase offer become a legal contract?
When the party who made the offer is notified of its acceptance. Notification is the delivery of a signed copy of the acceptance to the offeror.
Which of these statements about counteroffers is not true?
A counteroffer represents a rejection of an offer.
A counteroffer by a seller to a buyer turns the seller from offeree to offeror.
A counteroffer can give the buyers an “out” if they want one.
If the buyer rejects the first counteroffer, the seller can accept the first offer.
If the buyer rejects the first counteroffer, the seller can accept the first offer.
When presenting information about the buyers to the sellers, which piece of information might not be useful in helping the sellers make a decision?
The buyers’ family is pressuring them to purchase this home.
The buyers have been pre-qualified by a lender.
The buyers are interested in another property.
The buyers love the landscaping improvements the sellers have made.
The buyers’ family is pressuring them to purchase this home.
Which of these is not a good thing to do when writing a counteroffer?
Fill out a separate, numbered counteroffer form.
Rewrite whole paragraphs to ensure clarity.
Date and attach supporting documents.
Exert pressure on the sellers to include something the other party wants.
Exert pressure on the sellers to include something the other party wants.
Once an offer has been accepted, the agent should do all of the following except which?
Make sure all required disclosures have been done.
Attend the final walkthrough.
Be sure all requested inspections have been ordered.
Meet with the buyers’ lender to ensure they’re getting a good deal.
Meet with the buyers’ lender to ensure they’re getting a good deal.
Who typically presents an offer to the sellers?
Selling broker
Listing agent
Listing broker and selling broker
Selling agent
Listing agent
Most sellers object to offers based on:
Closing issues
Offering price
Financing issues
Contingencies
Offering price
Jake has received two offers on one of his listings. The home is listed at $210,000. One offer is for $208,000; the other is for $200,000. What should Jake do?
Present the $208,000 offer today and wait for a response from the sellers before he presents the other offer.
Present the $200,000 first and recommend rejection.
Then present the $208,000 offer.
Present the $208,000 offer and the $200,000 offer together at the same presentation meeting.
Hold both offers because he heard that a full-price offer is on its way.
Present the $208,000 offer and the $200,000 offer together at the same presentation meeting.
