Exam (elaborations)
unit 2 The CE SHOP real estate exams With complete solution | Newest
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unit 2 The CE SHOP real estate exams With complete solution | Newest
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unit 2 The CE SHOP real estate examsWith complete solution | Newest
Which one of the following tasks must licensees perform for seller clients?
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-Dictate the listing price of the property. II II II II II II
-Drive the sellers around to show them other properties that are for sale in their
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neighborhood.
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-Ensure that the buyer's earnest money is deposited. II II II II II II II
-Show the sellers how they can market their property. - Ensure that the buyer's earnest
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money is deposited.
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**A licensee must ensure the collection of the earnest money deposit from the buyer.
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Earnest money may be used as liquidated damages by the seller in the event of buyer
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default, so it's in the seller's best interest to ensure it's been deposited.
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When using the farming approach, affinity is a key factor when identifying a
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neighborhood. Which statement best describes affinity?
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-An area that is not currently farmed by another licensee
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-An area that the licensee likes
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-An area with a fair amount of listings ‒ not too many, not too few
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-An area with a variety or home styles, sizes, features, price points, amenities, buyers, etc.
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- An area that the licensee likes
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**Affinity is important when choosing a neighborhood. A licensee should genuinely like the
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area where she intends to work.
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Why should you know when the seller can vacate the property?
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-If a buyer wants to close before the seller can vacate, the seller may need to rent it back
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from the buyer.
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-You'll need to know when you can have the property staged.
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-You'll want the house empty for showings. II II II II II II
-You'll want to schedule the closing during the seller's occupancy. - If a buyer wants to
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close before the seller can vacate, the seller may need to rent it back from the buyer.
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**The timing of vacating an occupied property is important when marketing to buyers who
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may want to move in before the seller's ready to move out.
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Continue to Unit 2: Listing Agreements and Disclosures in South Carolina II II II II II II II II II II
Return to Unit 1: Basics of Working with Sellers II II II II II II II II
View Exam Results II II
Why might some agents work for buyers without ever having met them?
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-It's the most effective use of their time.
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-They believe they'll be able to get the buyer to commit to an agency agreement later.
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-They don't particularly like people. II II II II
-They're afraid to turn down any business. - They're afraid to turn down any business.
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,**Some agents are willing to work for buyers without an agency agreement and without
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ensuring buyer loyalty. This can be a waste of time.
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Who does the agent assisting the buyer in a transaction represent if there's no buyer
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agency agreement?
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-No one II
-The buyer in a sub-agency capacity
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-The customer II
-The seller - The seller II II II II II II
**Without a buyer agency agreement in place, the agent assisting the buyer actually
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represents and owes loyalty to the seller.
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________ have a fixed income, but they may have large down payments from selling
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prior homes. Accessible properties with little to no maintenance tend to be attractive to
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these buyers.
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-First-time buyers II
-Retirees
-Trade-down buyers II
-Trade-up buyers - Retirees II II II II II
**Retirees are similar to trade-down buyers, but there are some key differences. Little to
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no maintenance and accessibility are key factors for these buyers, who may have fixed
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incomes, but also have larger down payments from selling their previous homes.
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From a real estate licensee's standpoint, what's the purpose of qualifying buyers before
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working with them?
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-To determine their financial wherewithal
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-To determine their readiness to purchase and make sure they're not already working with
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another agent
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-To learn if you have things in common with them
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-To pre-qualify them for a loan - To determine their readiness to purchase and make sure
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they're not already working with another agent
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**The purpose of qualifying buyers is to determine their readiness to work with you, and
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their readiness to purchase. It's also important to establish that they're not already
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exclusively represented by another agent.
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What type of buyer tends to look for properties with less space than their existing home,
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but that will still offer them a similar quality of living?
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-First-time buyer II
-Retiree
-Trade-down buyer II
-Trade-up buyer - Trade-down buyer II II II II II II
**want to maintain a similar quality of living as their existing home.
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If a buyer wants to write an offer and asks for your help but doesn't want to sign an
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agency agreement with you, who do you represent?
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-Both the buyer and the seller II II II II II
, -No one II
-The buyer II
-The seller - The seller II II II II II II
**Without an agency agreement with the buyer, you'd represent the seller. II II II II II II II II II II
Without a buyer agency agreement in place, which party does the agent who's assisting
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the buyer represent?
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-No one II
-The agent II
-The buyer II
-The seller - The seller II II II II II II
**If there is no agency agreement in place, the agent who's assisting the buyer represents
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the seller.
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The Hendersons are having a very difficult time finding a property that meets their needs.
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What is a way they can find off-market listings?
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-Ask a real estate agent to poll her sphere of influence.
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-Ask a real estate agent to search the MLS.
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-Search homebuying websites. II II
-Visit real estate brokerages to see what properties they are advertising. - Ask a real
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estate agent to poll her sphere of influence.
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**Off-market listings are also known as pocket listings. Only the seller, the listing agent, II II II II II II II II II II II II II
and individuals the seller and listing agent have informed know the property is for sale. It
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is not posted on the MLS, brokerage websites, or homebuying websites.
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Under what circumstances are pocket listings more prevalent?
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-When inventory is high II II II
-When inventory is low II II II
-When the market is cold II II II II
-When there is greater demand for them - When inventory is low
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**Low inventory is the breeding ground for pocket listings.
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What does the underwriting step of loan processing typically involve?
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-Property inspection II
-Title search II
-Verification of the borrower's financial situation II II II II II
-Verification of the seller's financial situation - Verification of the borrower's financial II II II II II II II II II II II II II
situation
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**After the information on a loan application has been verified, the value of the property
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confirmed, and the title search completed, the loan is ready to be underwritten.
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What is the schedule of exceptions?
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-A list of items title insurance won't cover
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-An appraiser's list of unrelated properties
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-An inspection repair list
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-An underwriting issue - A list of items title insurance won't cover
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