Sales Process Flashcards

What is the purpose of a walk-through inspection conducted just before closing?

Answer: To verify the property's condition and that agreed repairs were completed

The final walk-through confirms the property is in the agreed condition and that any negotiated repairs have been made prior to transfer of ownership.

Which lead generation method relies on building relationships with past clients for repeat business and referrals?

Answer: Sphere of influence (SOI) marketing

SOI marketing leverages existing relationships with friends, family, and past clients who trust the agent and are likely to refer business.

What is a 'net listing' and why is it generally discouraged?

Answer: A listing where the broker keeps everything above a set net price, discouraged due to conflict of interest

In a net listing the broker's profit depends on exceeding the seller's net, creating a conflict of interest that is illegal in many states.

An open listing agreement differs from an exclusive right-to-sell agreement because:

Answer: With an open listing, the seller can list with multiple brokers and only pays commission to the one who finds the buyer

An open listing lets the seller work with several brokers simultaneously, paying only the broker who procures the buyer.

When should a listing agent disclose a known material defect to prospective buyers?

Answer: As soon as practically possible, typically before or at the time of showing

Agents must disclose known material defects promptly so buyers can make fully informed decisions before committing to a contract.

Which factor most influences whether a buyer will submit an offer after a showing?

Answer: The property's price relative to perceived value and condition

Buyers evaluate whether the asking price justifies the property's condition, location, and features; poor value alignment kills offers.

What does a 'kick-out clause' in a home sale contingency allow the seller to do?

Answer: Continue marketing the property and accept a new offer if the original buyer cannot remove the home sale contingency in time

A kick-out clause lets the seller keep the home on the market and, upon receiving another offer, give the original buyer a short window to remove the home sale contingency or be released from the contract.