Sell My House Home Selling Smarts 3 — Questions and Answers
Question 1: What is a 'seller's disclosure' form?
- A document listing the home's asking price history
- A legal document where sellers reveal known material defects or issues with the property (Correct answer)
- A form that waives the buyer's right to an inspection
- An appraisal report prepared by the seller
Correct answer: A legal document where sellers reveal known material defects or issues with the property
Seller's disclosure forms are legally required in most states and must honestly reveal known defects like water damage, foundation issues, or pest infestations.
Question 2: Which type of listing agreement gives one agent exclusive rights to sell the home AND earn the commission even if the seller finds the buyer?
- Open listing
- Exclusive agency listing
- Exclusive right-to-sell listing (Correct answer)
- Net listing
Correct answer: Exclusive right-to-sell listing
An exclusive right-to-sell listing guarantees the agent earns commission regardless of who finds the buyer, making it the most common agreement type.
Question 3: What does 'as-is' mean when a seller lists a property?
- The home has been recently renovated
- The seller will not make repairs or offer credits for defects found during inspection (Correct answer)
- The price is non-negotiable
- The home has passed all city inspections
Correct answer: The seller will not make repairs or offer credits for defects found during inspection
An as-is sale means the buyer accepts the property in its current condition and the seller will not make repairs, though buyers can still inspect and walk away.
Question 4: How does staging a home typically affect its sale?
- It has no measurable effect on sale price or speed
- It typically helps homes sell faster and for more money (Correct answer)
- It is only beneficial for luxury homes over $1 million
- It usually makes buyers suspicious about hidden problems
Correct answer: It typically helps homes sell faster and for more money
According to NAR research, staged homes sell faster and typically command higher prices because buyers can better visualize themselves living there.
Question 5: What is a 'comparative market analysis' (CMA)?
- A government-mandated appraisal required for all home sales
- An agent's evaluation of a home's value based on recent nearby sales of similar properties (Correct answer)
- A buyer's credit score review prepared by the lender
- A structural engineering report on the home's condition
Correct answer: An agent's evaluation of a home's value based on recent nearby sales of similar properties
A CMA is prepared by a real estate agent using recent sales of comparable nearby homes (comps) to estimate a property's current market value.
Question 6: When should a seller ideally schedule professional listing photos?
- As soon as the listing agreement is signed, before any preparation
- After the home is fully decluttered, cleaned, staged, and landscaping is tidy (Correct answer)
- During an open house for authentic candid shots
- In winter so buyers can see the home in all seasons
Correct answer: After the home is fully decluttered, cleaned, staged, and landscaping is tidy
Listing photos are the buyer's first impression online, so the home should be in its best possible condition before the photographer arrives.
Question 7: What is the primary purpose of a home appraisal in a financed purchase?
- To identify repair items the seller must fix
- To confirm the property's value meets or exceeds the loan amount for the lender (Correct answer)
- To determine the seller's capital gains tax liability
- To set the final negotiated sale price
Correct answer: To confirm the property's value meets or exceeds the loan amount for the lender
Lenders require an appraisal to ensure the property's market value supports the loan amount, protecting them from lending more than the home is worth.
Sell My House Home Selling Smarts 3
What is a 'seller's disclosure' form?