NAR Negotiation & Closing Techniques 3

Question 1

A buyer loves a home but is hesitant about the price. Which technique would an agent use when saying 'Shall we write the offer with a 30-day or 45-day closing?'

Accepted Answer

Either/or close

Answer

The either/or (alternative) close offers two choices, both of which move the transaction forward, sidestepping the yes/no decision entirely.

Question 2

In a multiple-offer situation, which non-price strategy can make a buyer's offer most competitive?

Accepted Answer

Offering a larger earnest money deposit with a shorter inspection period

Answer

A large earnest money deposit demonstrates financial commitment, and a shorter inspection period reduces seller uncertainty in a multiple-offer scenario.

Question 3

What is an escalation clause, and when is it most appropriately used?

Accepted Answer

A buyer's offer to beat competing bids by a set increment up to a maximum; used in competitive markets

Answer

An escalation clause automatically increases a buyer's offer above competing bids by a specified amount up to a stated cap, commonly used in hot seller's markets.

Question 4

A seller rejects an offer but does not provide a counteroffer. What is the buyer's agent's best next step?

Accepted Answer

Contact the listing agent to understand the seller's objections

Answer

Communicating with the listing agent to understand what fell short gives the buyer's agent information to craft a more acceptable offer.

Question 5

The 'feel, felt, found' technique is best described as:

Accepted Answer

An empathy-based objection handling approach that validates concern then redirects

Answer

'I understand how you feel, others have felt the same way, and what they found was...' validates the client's concern before presenting a resolution.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Negotiation & Closing Techniques 3