Sales Process Flashcards
7 cards from real Real Estate Sales Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sales Process flashcards as text
What does 'earnest money' represent in a real estate transaction?
Answer: A buyer's good-faith deposit showing intent to purchase
Earnest money is a deposit made by the buyer to demonstrate seriousness and is applied toward the purchase at closing.
A seller receives two simultaneous offers. What is the agent's ethical obligation?
Answer: Present both offers to the seller and let the seller decide
The agent must present all offers to the seller, who then decides how to respond to each; disclosing one buyer's offer details to another violates confidentiality.
Which contingency allows a buyer to exit a contract if they cannot obtain financing?
Answer: Mortgage contingency
A mortgage (financing) contingency protects the buyer's earnest money if they are unable to secure a loan within the specified timeframe.
What is the difference between a buyer's market and a seller's market?
Answer: A buyer's market has more homes than buyers; a seller's market has more buyers than homes
Supply and demand determine market type: excess inventory favors buyers, while scarce inventory gives sellers negotiating power.
An agent shows a listed property to a buyer who is also their client. What type of agency situation exists?
Answer: Dual agency
Dual agency occurs when one agent or brokerage represents both the buyer and seller in the same transaction, requiring disclosure and consent.
Which factor does NOT directly affect a property's listing price in a CMA?
Answer: The seller's outstanding mortgage balance
A CMA is based on market data; the seller's mortgage balance is a personal financial matter that does not influence market value.
What is the purpose of a pre-listing home inspection?
Answer: To identify and address defects before the property is listed
A pre-listing inspection lets sellers discover and repair issues proactively, reducing surprises that could derail a sale later.
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