Real Estate Sales Exam Sales Process 4

Question 1

What does 'days on market' (DOM) primarily indicate to a buyer?

Accepted Answer

How long a property has been listed without going under contract

Answer

DOM measures elapsed time since listing; high DOM often signals overpricing or property issues that buyers should investigate.

Question 2

Which clause in a purchase contract specifies what personal property stays with the home?

Accepted Answer

Inclusion/exclusion clause

Answer

Inclusion and exclusion clauses define which fixtures and personal property are part of the sale versus what the seller retains.

Question 3

A buyer wants to offer below list price because the home needs repairs. What strategy best supports this approach?

Accepted Answer

Include repair estimates or inspection findings to justify the reduced offer

Answer

Documenting repair costs gives the seller a factual basis to accept a lower price rather than viewing it as an arbitrary lowball.

Question 4

What is an escalation clause in a purchase offer?

Accepted Answer

A provision that automatically increases the buyer's offer by a set amount above competing offers up to a maximum

Answer

An escalation clause lets a buyer compete in multiple-offer situations by automatically outbidding competitors by a specified increment up to a cap.

Question 5

What happens to earnest money if a buyer backs out due to a valid contingency?

Accepted Answer

The earnest money is returned to the buyer

Answer

When a buyer exercises a valid contingency, the contract is terminated without penalty and the earnest money is refunded.

Real Estate Sales Exam Practice Test