Sell My House Home Selling Smarts 2 — Questions and Answers
Question 1: What does 'days on market' (DOM) indicate to a potential buyer?
- How long the seller has owned the home
- How many days the listing has been active without selling (Correct answer)
- The number of open houses held
- How many price reductions have occurred
Correct answer: How many days the listing has been active without selling
Days on market tracks how long a listing has been active, and a high DOM can signal overpricing or property issues to buyers.
Question 2: What is a 'contingent' offer in real estate?
- An all-cash offer with no conditions
- An offer that depends on certain conditions being met (Correct answer)
- A backup offer submitted after another offer is accepted
- An offer above the asking price
Correct answer: An offer that depends on certain conditions being met
A contingent offer is accepted by the seller but remains conditional on events like the buyer's home sale, inspection, or financing approval.
Question 3: Which improvement typically offers the HIGHEST return on investment when selling a home?
- Adding a swimming pool
- Minor kitchen remodel (Correct answer)
- Converting a bedroom to a home theater
- Adding a sunroom addition
Correct answer: Minor kitchen remodel
Minor kitchen remodels consistently rank among the highest ROI home improvements, often recouping 70-80% or more of costs at resale.
Question 4: What is 'dual agency' in a home sale?
- When two buyers compete for the same property
- When one agent represents both the buyer and the seller (Correct answer)
- When a property is listed on two MLS systems
- When two listing agents co-list a property
Correct answer: When one agent represents both the buyer and the seller
Dual agency occurs when a single agent or brokerage represents both buyer and seller in the same transaction, which can create conflicts of interest.
Question 5: What does a title company do during a home sale?
- Appraises the home's market value
- Researches the property's ownership history and insures against title defects (Correct answer)
- Negotiates the final sale price
- Conducts the home inspection
Correct answer: Researches the property's ownership history and insures against title defects
A title company searches public records to verify clear ownership and issues title insurance to protect against future claims on the property.
Question 6: If a buyer's inspection reveals a minor defect, what is the seller's BEST strategic response?
- Refuse all repairs and sell as-is
- Cancel the contract immediately
- Negotiate by offering a credit, price reduction, or completing the repair (Correct answer)
- Demand the buyer waive all contingencies
Correct answer: Negotiate by offering a credit, price reduction, or completing the repair
Offering a credit, price reduction, or repair keeps the deal alive and gives both parties flexibility to reach a mutually acceptable solution.
Question 7: What is 'earnest money' in a home purchase transaction?
- The down payment paid at closing
- A good-faith deposit submitted with an offer to demonstrate buyer commitment (Correct answer)
- The fee paid to the listing agent
- The cost of the home inspection
Correct answer: A good-faith deposit submitted with an offer to demonstrate buyer commitment
Earnest money is a deposit (typically 1-3% of the purchase price) submitted with an offer to show the buyer is serious and financially committed.
Sell My House Home Selling Smarts 2
What does 'days on market' (DOM) indicate to a potential buyer?