SU # 26__Preparing Buyer's Offer Flashcards
What is the most common objection buyers have?
Most buyers object to the listing price.
List two sales techniques a licensee could use to “close the deal” with a buyer.
Proceed as if the buyer has decided to make an offer.
Give the buyer a choice between two possibilities, both of which assume a purchase.
It’s the last shirt on the rack.
List three areas that are important to cover when counseling a buyer about writing an offer.
Pricing
Personal and real property issues
Closing date
Under what circumstances would a licensee need to seek the advice of counsel?
Your employing broker is unavailable and you have a pressing question.
The buyers are requesting special terms that are not addressed in the pre-printed real estate sales contract or one of the associated addenda. It is not legal for you to draft your own clauses.
The buyers want to include a legal document, such as an agreement for a road easement.
Broker Dave represents Buyer Mary. Mary wants to make an offer on a house that is 25% lower than the asking price. Dave writes the offer but is too embarrassed to submit it. Instead, Dave terminates the relationship with Mary. Has Dave acted properly?
No, Dave should have submitted the offer.
Yes, since Dave is not obligated to submit an offer he thinks is too low.
No, Dave cannot terminate the relationship with Mary.
Yes, since Dave was acting in good faith.
No, Dave should have submitted the offer.
In which of the following instances should a broker suggest that a buyer should consult an attorney?
If the buyers are requesting unusual provisions not covered by the standard contract
If the buyer and seller cannot agree
If there is a dispute over the earnest money
If the buyer breaches the contract
If the buyers are requesting unusual provisions not covered by the standard contract
Broker Carol’s buyer wants to submit an offer that Carol believes is too low. What should Carol say to the buyer?
Show the buyer comparables and indicate that the seller’s price is in line with similar properties.
Back off and let the buyer make the decision.
Suggest that the buyer sleep on it, and make an appointment for the next day to write up the offer.
Tell the buyer another offer is coming in and he/she had better act quickly.
Show the buyer comparables and indicate that the seller’s price is in line with similar properties.
If a buyer has given the broker a signal that the buyer is ready to make an offer, what should the broker do to get the buyer to make the offer?
Proceed as if the buyer has decided to make an offer.
Back off and let the buyer make the decision.
Suggest that the buyer sleep on it, and make an appointment for the next day to write up the offer.
Tell the buyer another offer is coming in and the buyer had better act quickly.
Proceed as if the buyer has decided to make an offer.
A buyer wants to take the offer to an attorney to review it. Broker Tim knows that another offer will be coming in at about the same time. What should Tim do?
Tell the buyer about the other offer and urge the buyer to skip the attorney.
Encourage the buyer to get the attorney to review it quickly.
Tell the buyer to submit the offer first and then take a copy to the attorney to review.
Bob cannot do anything; it is out of his hands.
Encourage the buyer to get the attorney to review it quickly.
Broker Will represents a young couple who is preparing an offer on a home. Through pre-approval, Will knows the couple can only afford to pay $100,000. The couple insists on offering $120,000. What should Will do?
Go to the listing agent and ask if the sales price can be dropped to $100,000.
Do nothing; it isn’t Will’s business.
Encourage the couple to offer only what they can afford.
Suggest that the couple pay more in earnest money.
Encourage the couple to offer only what they can afford.
Mary makes an offer to purchase a duplex from Sam. They agree on a price and both parties execute the contract. Mary learns that Sam is only selling half of the duplex. Mary wants to terminate the contract. What is the result?
Mary is out of luck; the contract is valid.
The contract is voidable due to mutual mistake.
The contract is void for lack of consideration.
Sam is in default for misrepresentation.
The contract is voidable due to mutual mistake.
Broker Sally has a buyer who seems to like a property but is concerned because the kitchen is out of date. What should Sally do?
Suggest that the buyer look at a different house.
Suggest that the buyer include an allowance for updating in the offer.
Offer to reduce the commission to help defray the cost of a new kitchen.
Not waste any more time on this house. The buyer will never make an offer.
Suggest that the buyer include an allowance for updating in the offer.
What can Broker Kevin do to create urgency in a buyer?
Encourage the buyer not to use an attorney; it takes too much time.
Point out how long houses in the area stay on the market and discuss how many showings there have been.
Set up a showing at a time that overlaps another showing so the buyer will know there is demand for the house.
Kevin cannot do anything; it is out of his hands.
Point out how long houses in the area stay on the market and discuss how many showings there have been.
Broker Bob has a buyer who has seen a property twice and seems ready to make an offer. However, he is objecting because the roof is 12 years old. What should Bob do?
Suggest that the buyer look at a different house.
Point out that the roof is not leaking despite its age.
Ask the buyer if the buyer would like to make an offer taking the roof age into account.
Not waste any more time on this house. The buyer will never make an offer.
Ask the buyer if the buyer would like to make an offer taking the roof age into account.
