Real Estate Sales Exam Sales Process 5 — Questions and Answers
Question 1: What is the purpose of a walk-through inspection conducted just before closing?
- To renegotiate the purchase price based on new market data
- To verify the property's condition and that agreed repairs were completed (Correct answer)
- To satisfy the lender's final underwriting requirement
- To allow the buyer to invite an interior designer to measure rooms
Correct 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.
Question 2: Which lead generation method relies on building relationships with past clients for repeat business and referrals?
- Cold calling expired listings
- Sphere of influence (SOI) marketing (Correct answer)
- Purchasing internet leads
- Door knocking in new subdivisions
Correct 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.
Question 3: What is a 'net listing' and why is it generally discouraged?
- A listing where the agent earns a fixed flat fee, discouraged because it reduces service quality
- A listing where the broker keeps everything above a set net price, discouraged due to conflict of interest (Correct answer)
- A listing with a tiered commission schedule, discouraged for complexity
- A listing requiring the agent to guarantee a minimum sale price
Correct 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.
Question 4: An open listing agreement differs from an exclusive right-to-sell agreement because:
- Open listings expire after 30 days; exclusive listings last one year
- With an open listing, the seller can list with multiple brokers and only pays commission to the one who finds the buyer (Correct answer)
- Open listings require MLS cooperation; exclusive listings do not
- Open listings allow the seller to sell independently without paying any commission
Correct 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.
Question 5: When should a listing agent disclose a known material defect to prospective buyers?
- Only after an offer is submitted
- As soon as practically possible, typically before or at the time of showing (Correct answer)
- Only at the buyer's written request
- After the purchase agreement is fully executed
Correct 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.
Question 6: Which factor most influences whether a buyer will submit an offer after a showing?
- The listing agent's years of experience
- The property's price relative to perceived value and condition (Correct answer)
- The day of the week the showing occurs
- The number of other showings scheduled that week
Correct 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.
Question 7: What does a 'kick-out clause' in a home sale contingency allow the seller to do?
- Terminate the contract if the seller finds a better offer regardless of contingencies
- Continue marketing the property and accept a new offer if the original buyer cannot remove the home sale contingency in time (Correct answer)
- Raise the sale price if market conditions improve after contract execution
- Require the buyer to waive all remaining contingencies within 48 hours
Correct 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.
Real Estate Sales Exam Sales Process 5
What is the purpose of a walk-through inspection conducted just before closing?