ch.5 selling

real estate

Another common name for an auxiliary dwelling unit is:
A. storage shed
B. over improvement
C. granny flat
D. temporary housing

C. granny flat

Economic obsolescence is considered:
none of these answers are correct
curable
inevitable
incurable

incurable

Any major insurance claims made within the last five years must be:

a. Documented by photographic evidence.
b. Disclosed to the buyer.
c. Approved by the CalBRE.
d. All of the above.

b. Disclosed to the buyer.

The normal wear and tear as things need to be repaired or replaced is called:

a. Physical depreciation.
b. Curb appeal.
c. Urban blight.
d. Marketability negatives.

a. Physical depreciation.

An insurance company may deny full coverage for a fire if additions or alterations are:

a. non-permitted.
b. properly permitted.
c. modern.
d. ugly.

a. non-permitted.

6. "Functional obsolescence" refers to loss of value due to adverse factors:

a. outside of the property.
b. within a structure.
c. both a and b.
d. none of the above.

b. within a structure.

A purchaser who over-improves a fixer-upper:

a. risks not being able to recover the investment.
b. will always be able to recover the investment.
c. is prohibited from ever being able to recover the investment.
d. none of the above.

a. risks not being able to recover the investment.

 Which of the following is an advantage attributed to owning a home?

a. Appreciation
b. Tax benefits
c. Equity build up
d. All of the above

d. All of the above

For a couple to benefit from the $500,000 capital gains tax advantage, the home must have been the principal residence for a minimum of:

a. one out of the last two years.
b. two out of last three years.
c. two out of the last five years.
d. five out of the last five years.

c. two out of the last five years.

In a "hot sellers' market:
A. prices generally drop
B. getting preapproved for a loan is unwise.
C. It is not uncommon to receive several offers on the same property.
D. offers are few and far between.

C. It is not uncommon to receive several offers on the same property.

For most buyers, the purchase of a home is:

A. The most important financial decision they will ever make.
B. The largest asset they will ever own.
C. Both a and b.
D. None of the above.

C. Both a and b.

2. Most property owners move on an average of:

a. Two to three years.
b. Four to six years.
c. Six to eight years.
d. Ten to twelve years.

c. Six to eight years.

10. Buyers who don't make an effort to be prequalified demonstrate a lack of:

a. motivation.
b. good credit.
c. either a or b.
d. none of the above.

c. either a or b.

When selling real estate, the LEAST effective form of communication is:

a. direct contact (face-to-face).
b. by letter (one-way).
c. by telephone (two-way).
d. none of the above.

b. by letter (one-way).

 When soliciting clients via the telephone:

a. don't expect to make a sale over the telephone
b. use your normal speaking voice.
c. stay on the line only long enough to make an appointment to meet in person.
d. all of the above.

d. all of the above.

 Before using the telephone to solicit business you should:

a. check the "National Do Not Call Registry."
b. check the "CalBRE Solicitation Opt Out List."
c. check the "Nationwide Mortgage Licensing System and Registry."
d. all of the above.

a. check the "National Do Not Call Registry."

Record keeping is essential for:

a. controlling revenue.
b. controlling expenses.
c. follow-up.
d. all of the above.

d. all of the above.

A "Switch Sheet" is:

a. the industry code word for "Bait and Switch."
b. a quick reference list of similar properties to the one being advertised.
c. a list of office floor time schedules used for vacation planning.
d. none of the above.

b. a quick reference list of similar properties to the one being advertised.

 Before prospects purchase a home, they must have the:

a. financial ability to buy.
b. desire to buy.
c. intent to buy.
d. all of the above.

d. all of the above.

Character, capacity, and capital are the three "C's" of:

a. credit.
b. closing.
c. commissions.
d. none of the above

a. credit.

 Showing a prospect a large number of properties at once:

a. gives the prospect a chance to hone in on exactly what they are looking for.
b. allows the agent to quickly eliminate the "lookie loos."
c. can lead to the prospect's sensory overload.
d. guarantees a quick sale.

c. can lead to the prospect's sensory overload.

A "brokers' open house" is:

showing a house that actually belongs to the broker.
showing the open house to brokers and agents only.
considered pocket listing and is illegal.
a celebration of the opening of a new brokerage office.

showing the open house to brokers and agents only.

A "referral fee" is:
a commission earned by introducing your client to another brokers
none of these answers are correct.
always 50/50 of the commission earned by the buyer's broker.
illegal in California

commission earned by introducing your client to another brokers

When soliciting sellers by mail, which of the following is recommended?
A. Include a free comparative market analysis as a gift.
B. Mailing lists can be provided by title companies.
C. All of these answers are correct.
D. Never address the letter to "occupant."

C. All of these answers are correct.