SU # 55__Presenting and Negotiating Offers Flashcards
Why is it important to include all of the buyers’ terms in the original purchase and sale agreement?
Because once the document is signed by both buyers AND sellers, the purchase and sale agreement becomes a binding contract.
What types of buyers may be particularly attractive to sellers?
Buyers who have been pre-approved for a loan or buyers who are paying in cash and don’t need a loan.
Which areas of the purchase and sale agreement may need special attention?
Property Description
Payment Method
Contingencies or Other Special Arrangements
Name a situation in which it might be best to consult an attorney for advice when preparing a purchase and sale agreement.
The buyers are requesting special terms that are not addressed in the pre-printed purchase and sale agreement or one of the associated addenda. It is not legal for you to draft your own clauses.
When preparing to present an offer to the sellers, what kinds of supporting information can be helpful?
A “Seller’s Estimated Net Proceeds” worksheet to estimate the costs of the sale based on the offering price and an updated comparative market analysis would be helpful.
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 the time to raise the sellers’ comfort level that they will be selling their home to people who will really appreciate it. This is particularly important since selling property is so emotional.
Which of the following is not an option a seller might take once an offer has been presented?
Accept the offer exactly as it is written
Reject the offer totally
Reject the offer and submit a counteroffer
Rewrite the offer.
Rewrite the offer.
Which of these is not a good thing to do when writing a counteroffer?
Fill out a separate, numbered counteroffer form.
Promptly provide counter offer to the other party.
Date and attach supporting documents.
Exert pressure on the sellers for changes you think are important.
Exert pressure on the sellers for changes you think are important.
When preparing for a presentation, how many copies of the offer should you make?
Make three copies for your brokerage.
Make only one copy for your personal records.
Make a copy for each seller.
Make a copy for the buyer’s agent.
Make a copy for each seller.
When you believe an offer is both fair and reasonable but it does not meet the sellers’ asking price, you should _____.
Make no recommendations and let the sellers decide on their own.
Recommend a counteroffer back to list price.
Work toward acceptance.
Recommend that the seller delay response to make the buyer nervous and then submit a counteroffer.
Work toward acceptance.
What is the impact of making a counteroffer?
A counteroffer represents a rejection of an offer.
A counteroffer by a seller to a buyer turns the seller from offeror to offeree.
A counteroffer can give the sellers a way out.
If the buyer rejects the first counteroffer, the seller can accept the buyers’ original offer
A counteroffer represents a rejection of an offer.
When you receive an offer on a listing for less than asking price, which of these would be the least effective course of action to take?
Study the other terms of the offer so you can maximize the offer’s benefits and minimize the lower price.
Set up a face-to-face meeting with the sellers as soon as possible.
Prepare additional documentation to take to the presentation.
Give the sellers the price over the phone so they can think about it before you meet with them.
Give the sellers the price over the phone so they can think about it before you meet with them.
What is the value in doing another CMA when an offer is presented?
A new CMA can provide a realistic interpretation of the offer.
A new CMA is not useful when an offer is being made.
A new CMA can give the buyers a way out of the offer.
A new CMA is required for a loan application.
A new CMA can provide a realistic interpretation of the offer.
Which of these statements about purchase offers is true?
The offer must be in writing, but the acceptance can be oral.
The offer can be oral, but the acceptance must include all of the terms in writing.
Both the offer and the acceptance must be in writing to be binding
Neither offer nor acceptance must be in writing, but the deed for title transfer must be in writing.
Both the offer and the acceptance must be in writing to be binding
