unit 7

Question 1

Why is it important to provide a market analysis to the seller?

Answer 1

Because market conditions play a large role in setting a realistic selling price

Question 2

What is the most common reason a property fails to sell?

Answer 2

It’s overpriced.

Question 3

Angie’s home sold for $324,500 and her mortgage is paid off. She owes her broker 7% commission on the sale. What will Angie net?

Answer 3

100% - 7% = 93%
$324,500 X .93 = $301,785
Angie’s net on the sale is $301,785.

Question 4

Brian purchased a lot for $12,500. After the zoning was changed, it is sold for $9,000. What was percentage of loss?

Answer 4

$12,500 - $9,000 = $3,500
$3,500 ÷ $12,500 = .28
Percentage of Loss = 28%

Question 5

What is the primary criticism that sellers have about their agents?

Answer 5

Lack of communication

Question 6

When you meet with your sellers after you obtain the listing, what is one of the first things you should share with them to get them involved in the process?

Answer 6

It’s important and helpful to give the sellers written homeowner tips for improving the cosmetic aspects of both the interior and exterior of their property.

Question 7

What kinds of things should you include in a weekly activity report?

Answer 7

Number of inquiries on the property that week
Number of showings
Advertising done that week
Open houses held
Number of open house visitors
Comments made by other agents or prospective buyers

Question 8

How can you prepare your sellers for receiving offers?

Answer 8

Share a blank copy of the purchase agreement with them and go over each of the paragraphs on the form. Also talk to them about the possibility of getting a quick offer and the consequences that could result from the tendency to reject such an offer.

Question 9

Name four traditional marketing tools that you should use with every listing you get.

Answer 9

For Sale sign
Photos
Classified ads
Flyers
Lockboxes and MLS listings are also critical, but can only be used with seller permission

Question 10

What are some important tips for home tours?

Answer 10

Sellers should not be at home.
Have some light refreshments for the agents.
Play soft mood music.
Give each agent a property flyer.
Have agents fill out a short evaluation of the home.

Question 11

In addition to office and MLS home tours, what are some other ancillary tools you can use?

Answer 11

Neighborhood canvass letter Agent open house
Public open house

Question 12

What should you keep in mind when developing your marketing plans?

Answer 12

Each plan should be client-specific—that is, have some standard tasks, but also some activities that are customized to the particular sellers.

Question 13

seller’s net

Answer 13

Seller’s Net
Sale Price | 100% (minus - ) Commission Rate

Question 14

percentage of profit or loss

Answer 14

Profit or Loss
Original Price | Percentage of Gain or Loss

Question 15

Jim bought his home for $250,000 and it sold for $202,500. What was Jim’s percentage of loss?

Answer 15

19%

Question 16

Jim and Jane’s home sold for $345,800. They owe $240,000 on their mortgage. What will their net be after they pay $10,000 in expenses and a 9% commission?

Answer 16

$64,678

Question 17

All of these statements are true except which one?
Virtual tours are an expensive marketing tool to use.
An agent should print off a copy of the listing on the company’s internet site to send to the sellers.
Participation in the MLS increases a licensee’s inventory.
Property evaluations from other agents have valuable information for sellers.

Answer 17

Virtual tours are an expensive marketing tool to use.

Question 18

Which of these marketing tools is not considered a traditional tool?

Answer 18

Video tour

Question 19

Which of these statements is FALSE?

Answer 19

Agents should not invite the next-door neighbors to the open house.

Question 20

You should try to attach a rider strip to your For Sale sign that has what information on it?

Answer 20

Your cell phone number

Question 21

What is a good technique to use to collect feedback from agents when conducting a property showing?

Answer 21

Ask each agent to fill out an evaluation.

Question 22

What marketing technique uses AM/FM radio transmissions that broadcasts a message about the listing?

Answer 22

Talking House

Question 23

Mr. Jones wanted to make a $50,000 profit after paying his first mortgage of $21,275 and paying a 6% commission. What would the sale price have to be?

Answer 23

$75,825

Question 24

What technique is frequently used to increase attendance when holding an agent’s open house?

Answer 24

Drawing for incentives

Question 25

Which marketing technique is used to provide information to neighbors about the listed property?

Answer 25

Neighborhood Canvass Letter