Sell My House Home Selling Smarts 4

Question 1

What happens if a home appraises BELOW the agreed sale price?

Accepted Answer

The buyer, seller, or both must renegotiate or the deal may fall through

Answer

An appraisal gap means the lender won't fund the full amount, so the parties must renegotiate the price, the buyer covers the gap in cash, or the contract is cancelled.

Question 2

What is 'net proceeds' from a home sale?

Accepted Answer

The amount the seller receives after paying off the mortgage, commissions, and closing costs

Answer

Net proceeds is the actual cash the seller walks away with after subtracting the mortgage payoff, agent commissions, closing costs, and any other fees.

Question 3

Which factor most directly determines whether a seller's market or buyer's market exists?

Accepted Answer

The ratio of available homes for sale (supply) to buyer demand

Answer

The balance of supply (inventory) versus demand (buyers) is the primary driver — low inventory with high demand creates a seller's market, and vice versa.

Question 4

What is a 'kick-out clause' in a real estate contract?

Accepted Answer

A seller's right to continue marketing and accept a better offer if the buyer's home doesn't sell in time

Answer

A kick-out clause lets sellers accept a contingent offer while still marketing the home, and if a better offer comes, the original buyer gets a set time to remove their contingency or lose the deal.

Question 5

What is the primary advantage of accepting an all-cash offer over a financed offer, even if the cash offer is lower?

Accepted Answer

No appraisal required and no lender financing contingency, reducing risk of the deal falling through

Answer

Cash offers eliminate appraisal risk and financing contingencies, resulting in a faster, more certain closing with fewer ways the deal can collapse.

Sell My House Practice Test

Sell My House Practice Test

Sell My House Home Selling Smarts 4