Why might it be important to check the MLS for information on a subject property, as opposed to just comparables?
It can give you a good idea of the suggested list price for the property.
It can help you predict the sales price.
It can show you if it’s been on the market recently and what it sold for at that time.
It can tell you how long it will take to sell.
Jane is about to phone her seller clients, the Martins. There have been no calls, no showings, and no offers for three weeks on their property. What should she say?
“I can no longer represent you.”
“It’s time to take your home off the market.”
“I will need to start billing you hourly until we receive an offer.”
“We’ve had no activity for three weeks.”
Licensees can use several types of market data to determine an appropriate pricing strategy. Which market indicator is expressed as the number of months it takes to sell homes at the current rate of sales?
Inventory rate
Price level
Sales rate
Sales volume
What’s a typical reason that a listing agent would opt not to use professional photography or more than a few photos of a particular listing?
It was raining when the photos were taken.
The listing agent wants to buy the home, so he doesn’t want to encourage buyer interest.
The sellers only want a few, standard photos.
The views are eyesores and the home is in rough condition.
The multiple listing service is a go-to resource for data when researching a subject property. What information will you find there?
How long it took to sell last time
Next year’s tax-assessed value
Predicted sales price
Suggested list price
Waiving the inspection, waiving the appraisal, and offering the seller possession after closing are all terms buyers may offer a seller to make their offer more appealing in a ______ market.
Cold
Dynamic
Hot
Static
Which of the following are common with cold markets?
Bidding wars
Multiple offers
No or low offers
Terms unfavorable to buyers
Sellers are a good source of data you’ll need to help you prepare a CMA. For example, what can they easily do?
Give you a trio for the property
Show you a list of liens and judgments against the property
Tell you how long the property took to sell when they bought it
Tell you whether they recently had an appraisal performed
What’s the difference between improved vacant land and unimproved vacant land?
Improved vacant land and unimproved vacant land are zoned differently.
Improved vacant land may have essential services available, but unimproved land does not.
Improved vacant land pertains to empty lots in cities and towns, and unimproved vacant land is in rural areas.
Unimproved vacant land has no structures on it, but improved vacant land has empty, unused structures on it.
Your client Glenn wants to sell his home in the Capitol Heights neighborhood. Built in 2000, it has an updated kitchen and a three-car garage, is 2,350 square feet, and sits on a 6,000-square-foot lot. Which of the following properties would you consider a potential comparable to Glenn’s home? Unless stated otherwise, assume all features match the Glenn’s property.
128 Dittmore Street, a 2,300-square-foot home located in Capitol Heights with a two-car garage that sold two years ago
44 Avery Street, a condo in Capitol Heights that sold last month
515 Baker Street, a Capitol Heights home that sold two months ago in foreclosure
77 Charles Street, a 2,500-square-foot home in a neighborhood adjacent to Capitol Heights that sold three months ago
What’s the purpose of a short sale?
To avoid foreclosure
To avoid responsibility for taking the traditional route to selling property
To replenish the local real estate market with fresh properties in a short amount of time
To sell the property quickly when the real estate market is booming
Buyers are typically in a power position in ______ markets.
Cold
Dynamic
Hot
Static
Which of the following is a common problem with a foreclosure property purchase?
Competition from owner-occupier purchasers
Damage from the prior owner
Deep discounts
Failure to disclose distressed status
Which of the following is a characteristic of real estate that sets it apart from other asset classes?
Ease of liquidity
Indestructibility
Mobility
Responds quickly to market dynamics
Why should you include a seller net sheet with a comparative market analysis?
To bulk up the CMA with extra paperwork
To remind the sellers how much compensation they will owe you
To show the sellers what the current recommended list price will net them
You shouldn’t.
What does the Rule of Three say about comparables when preparing a CMA?
At least three comparables should be used.
Comparables should be located no more than three miles apart.
Comparables should be no more than three blocks away.
You should select no more than three comparables.
Clayton is your seller client, and you’ve provided him with an appropriate list price range for his house. He’s now found another house he’d like to purchase, but he needs to sell his current house before he can make an offer. Should his desire for another property impact pricing strategy?
No, because seller motivation should not impact pricing strategy.
No, because the desire to move isn’t an important factor.
Yes, if his desire for the other property outweighs his need to get top dollar for his house.
Yes, if the other property is comparable to his property.
What’s a listing agent’s best practice when communicating with sellers about showings?
Ask sellers to leave a lockbox outside when showings are scheduled.
Ask sellers to serve refreshments.
Ask the seller to be present for all showings, in case buyers have questions.
Communicate what to expect and how to prepare for a showing.