Sell My House Home Selling Smarts 5

Question 1

What is 'forbearance' and how might it affect a seller?

Accepted Answer

A temporary pause on mortgage payments that may need to be repaid before or at closing

Answer

Mortgage forbearance allows homeowners to temporarily skip payments, but any deferred amounts typically become due at closing and reduce the seller's net proceeds.

Question 2

Which pricing strategy can generate multiple competing offers in a hot seller's market?

Accepted Answer

Pricing at or slightly below market value to attract many buyers quickly

Answer

Pricing at or slightly below market value creates urgency and attracts multiple buyers, often resulting in a bidding war that drives the final price above asking.

Question 3

What is an 'escalation clause' in a buyer's offer?

Accepted Answer

A provision that automatically raises the buyer's offer by a set increment above competing offers, up to a maximum price

Answer

An escalation clause lets buyers automatically outbid competitors by a specified amount without submitting a new offer, up to their stated maximum price.

Question 4

What is a 'leaseback' (or rent-back) agreement in a home sale?

Accepted Answer

An arrangement where the seller remains in the home temporarily as a tenant after the sale closes

Answer

A leaseback lets sellers close the transaction and receive their proceeds while continuing to occupy the home temporarily, buying time to find and move into their next home.

Question 5

What is the purpose of a 'walkthrough' inspection typically conducted just before closing?

Accepted Answer

To verify the property's condition hasn't changed since the purchase agreement and agreed-upon repairs were completed

Answer

The final walkthrough lets buyers confirm the home is in the same or better condition as when the offer was made and that all negotiated repairs were completed.

Sell My House Practice Test

Sell My House Practice Test

Sell My House Home Selling Smarts 5