NAR Negotiation & Closing Techniques 2

Question 1

A buyer submits an offer $20,000 below list price. The seller wants to counter at full price. As the listing agent, what negotiation strategy best serves the seller?

Accepted Answer

Counter slightly below list price while highlighting property value

Answer

A strategic counter just below list price keeps the buyer engaged while signaling the seller's position and property value.

Question 2

What is the 'nibble' technique in real estate negotiations?

Accepted Answer

Asking for small additional concessions after the main deal is agreed upon

Answer

The nibble involves requesting small extras (closing costs, repairs, appliances) after the buyer and seller have already agreed on the main terms.

Question 3

A buyer's agent presents an offer with a 24-hour expiration. From a negotiation standpoint, what is the primary purpose of this deadline?

Accepted Answer

To create urgency and prevent the seller from shopping the offer

Answer

Short offer deadlines create urgency, limiting the seller's ability to use the offer to solicit competing bids.

Question 4

Which closing technique involves summarizing all agreed-upon benefits before asking for the final decision?

Accepted Answer

Summary close

Answer

The summary close recaps all the positive points and concessions already agreed upon to build momentum toward final commitment.

Question 5

During negotiations, a seller says 'I need to think about it.' The BEST agent response is to:

Accepted Answer

Ask what specific concerns remain unaddressed

Answer

Uncovering the specific objection behind 'I need to think about it' allows the agent to address the real barrier to closing.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Negotiation & Closing Techniques 2