California: “Helping Buyers Narrow in on Their Dream Home” Questions only (no answers)
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1. Duties of real estate agents include _____________.
a. Obedience
b. Confidentiality
c. Fiduciary
d. All of the answers shown
2. “Empty nesters” include buyers that ________________.
a. Have no children
b. Their children have grown up and are on their own
c. 1st time buyers that do not want children
d. All of the answers shown
3. John has a new customer that he is working with and has been pre-qualified for a mortgage of $375,000. Including his down payment and closing costs he can afford a home with a list price of $500,000. The client is not sure what he really wants, but does have a list of 45 properties that he has put together from a search of the public view of the MLS. These properties range in price from $400,000 up to $650,000. What is the FIRST thing that John should do?
a. Start making appointments to view the properties
b. Work with his client to determine a list of features that are desirable
c. Filter the client’s search result by price
d. Have the customer sign an agency agreement
4. What is a possible outcome if a real estate agent does not properly manage the real estate transaction?
a. Wasted time
b. No transaction
c. A mad client that blames the agent
d. All of the answers shown
5. One of the best skills that a real estate agent can have when working with buyers is the ability to _________
a. Understand what type of buyer they are
b. Chat them up
c. Be their friend
d. Buy them a drink
6. Why is energy efficiency important for most homebuyers?
a. High cost of energy, which continues to rise
b. Desire to be “green”
c. Desire to leave a low carbon footprint
d. It is the law
7. Net income is ___________ income, while gross income is ____________.
a. Total / income after taxes
b. Total / income before taxes
c. Income after taxes and other deductions / total income
d. Income before taxes and other deductions / Income before taxes and other deductions
8. What can impact a real estate agent’s efficiency and ultimately their earnings?
a. Working with unqualified buyers
b. People not serious about buying
c. Shoppers
d. All of the answers shown
9. In most cases, the open buyer specifically appreciates the ____________that the agent performs.
a. Fiduciary duties
b. Research
c. Confidentiality
d. Friendship
10. The study done with the different types of jams suggested:
a. People are more likely to purchase something when they have lots of choices
b. People are more likely to purchase something when they have fewer choices
c. The amount of choices provided has no impact on a person’s buying decision
d. None of the above
11. Often, homeowners may want to downsize their homes. It is important for the real estate agent to understand if the reason for trading down is because their existing home is too big or if they are looking to _____________.
a. Retire
b. Travel
c. Own a second home
d. Reduce their costs
12. Which of the following are characteristics of a buyer looking to trade down?
a. May be looking to reduce costs
b. May be going through a personal or financial hardship
c. May be looking for less space to maintain
d. All of the answers shown
13. The willingness of the buyer client to ____________ is a good sign of the buyer’s seriousness to buy a home.
a. Do research of their own
b. Attend “Open Houses” on the weekend
c. Visit “Model Homes” on the weekend
d. Obtain a pre-approval or pre-qualification for a mortgage
14. Often buyers think that the home they are buying is __________, while the home they are selling is __________.
a. Priced correctly / priced correctly
b. Overpriced / priced correctly
c. Overpriced / underpriced
d. Underpriced / underpriced
15. In addition to being durable, long lasting and adding value to a home, tile and oak flooring _______________.
a. Is easy to clean
b. Easy to maintain
c. A great product for people suffering from various respiratory allergies
d. All of the answers shown
16. New and old _________ can negatively impact indoor air quality and have a negative impact on people suffering from various respiratory ailments.
a. Carpet
b. Tile
c. Engineered Hardwood
d. Wallpaper
17. The text suggests a certain website to visit that will help you find a certified contractor to perform an energy audit. What website was that?
a. Mckissock.com
b. Energyaudits.com
c. Resnet.us
d. Energystar.gov
18. Which of the following are characteristics of a first-time home buyer?
a. Older
b. Unrealistic expectations
c. Experienced
d. Knowledgeable on the home buying process
19. If a client asks a real estate agent to recommend the name of a lender or home inspector, how many names should the agent provide?
a. None
b. One
c. Two
d. Three or more
20. One of the keys with dealing with buyers that are well informed and have done research on neighborhoods is to ____________.
a. Keep answers brief and to the point
b. Provide detailed responses
c. Assume that they are not serious about buying
d. None of the answers shown
21. An effective way to manage expectations of the sales price with a seller is to ____________.
a. Show them similar properties on the market
b. Refer them to the MLS
c. Not worry about them, the house will sell at some price and at the end of the day, they will be happy
d. None of the above
22. Which of the following statements is true?
a. It is hard to find a home that has absolutely every desired feature.
b. All buyers are the same.
c. A house is a house and a buyer’s culture never factors into the decision to buy.
d. It is ok to turn down an offer on a home because the buyer is a minority.
23. What does the text suggest that you bring with you to a showing to determine how much natural sunlight will be shining through the windows at each time of day?
a. A prism
b. A compass
c. A sun dial
d. A pocket watch
24. John has been working with Jane and Joe, who are recently married, on finding them a suitable home. John found 6 homes that meets their needs and budget. Jane is very excited about 2 of the 6 homes that John has showed them. However, Joe is very negative about everything that they have seen. What issue should John consider?
a. Jane wants to buy a home, while Joe does not
b. John has not done a good job identifying their needs
c. John is looking for suitable properties in the wrong neighborhoods
d. None of the answers shown
25. The different types of buyer profiles include _______________.
a. Open Buyer
b. Closed Buyer
c. Emotional Buyer
d. Invested Buyer
26. In the event that a home is suspected to have mold, the best way to verify this is to ___________________.
a. Have the home examined by an industrial hygienist
b. Perform home tests to detect mold
c. Have the home examined by a building contractor
d. All of the answers shown
27. The best way for an agent to provide factual data is to ___________.
a. Do the primary research and report the findings back to the client
b. Guide the client to where the data can be found
c. Do not provide any assistance
d. Refer them to the seller’s agent / broker
28. In many cases there is a direct correlation between school scores and __________.
a. Transfer tax
b. Property taxes
c. State income taxes
d. Federal income taxes
29. Single-family homes that have one level are often popular with ____________.
a. Disabled buyers
b. Buyers with a member of their family with disabilities
c. Elderly buyers
d. All of the above, but an agent should NOT assume that the buyer is only interested in single story homes
30. One of the ways to mitigate the timing risks associated with a same day closing on two related transactions (A client closing on the home they sold, as well as closing on the new home they just bought) is to arrange _______________.
a. A short term rental option for the seller for a set period of time
b. A lease option for the seller, which will allow them to stay in the home they sold
c. A hotel room or suite and schedule the closing on the new home purchase 2-3 days later.
d. All of the answers shown
31. One of the results of showing a buyer lots of houses is that _____________
a. It can lead to “analysis paralysis”, where they can not decide what home to buy
b. It frees up time for the agent
c. It keeps the client engaged with the agent
d. All of the above
32. Family members often add unrealistic expectations to what type of buyer?
a. Vacation homebuyers
b. Move up homebuyers
c. First time homebuyers
d. None of the answers shown
33. If a buyer is looking to simply relocate, what is the trouble that they often have when finding a new home?
a. They rarely know what they want
b. They are rarely sure of their price range
c. They are likely unfamiliar with the market in the new area and how their current budget fits into that market
d. It does not match exactly what they had in mind
34. A buyer is relocating to Fairfax, Virginia, which is in the Washington, D.C. suburbs, due to a work transfer and is not familiar with the area. His office is located in downtown Washington. What information would be of use to him in selecting a home?
a. Driving time to his office from the home during rush hour
b. Distance to public transportation options near the home
c. Distance from his office to public transportation options near his work
d. All of the answers shown
35. One of the most important questions to ask a buyer looking to “trade up” is _______________.
a. Have you sold your home?
b. Is your house for sale?
c. Have you been pre-qualified for a new mortgage?
d. All of the answers shown
36. John, who is a buyer, is looking for a Craftsman style home with at least 1,800 square feet, is at least 75 years old and is in perfect condition, but wants to pay no more than $300,000. The agent working with John, has determined that the current market for that style home is over $600,000. John refuses to make any compromises in his requirements or make any offer on the available properties. What should the agent do next?
a. Drop John as a client
b. Discuss with their broker dropping John as a client
c. Keep looking for available properties
d. Stop returning John’s daily calls
37. What percentage of people in the United States are allergic to pets?
a. 5%
b. 10%
c. 25%
d. 40%
38. An example of a category, which could be useful in “filtering” available properties include ____________________.
a. Towns
b. Neighborhoods
c. Zip codes
d. All of the above
39. Staging of an unoccupied home is critical because _________________.
a. It allows the buyer to visualize the use of the rooms
b. Gives the house an appearance of a home
c. It allows buyers to visualize their furniture in the home
d. All of the answers shown
40. The study done with the magazines suggested:
a. People are more satisfied with their purchase when they have many choices to pick from
b. People are less satisfied with their purchase when they have fewer options
c. The amount of choices provided is not as significant to satisfaction as how those items are categorized
d. All of the above
41. James is interested in buying a new condominium in the upscale DuPont Circle area of Washington D.C. His requirements include 2BR, Den, 2 bathrooms with a minimum of 1,400 square feet. He has been qualified for a mortgage, but including his mortgage, down payment and closing costs, he is tapped out at $400,000. After an exhaustive search, the agent has discovered that there are many options available, but are well over his budget. What should the agent do?
a. Meet with James to go over what he has found
b. Provide alternatives in another neighborhood that meet James’ requirements and budgets
c. Provide alternatives in the DuPont Circle area that are within budget, but may have features that James will need to compromise on
d. All of the answers shown
42. Once pre-qualified the most important thing to ask a buyer that is interested in a new home is _____________.
a. Which new home communities have you visited? / In most cases if they have previously registered, the builder is not going to pay the agent a commission
b. When do you need a home? / Need to focus on completed homes
c. Which communities have you visited? / Able to use this information to narrow down the search
d. None of the above are correct
43. What is one of the real dangers in a client making an offer on a property that is significantly below market value, while demanding expensive repairs and the seller paying closing costs?
a. The offer will be rejected
b. The offer is so low and the terms so outrageous that the seller refuses to negotiate with the buyer under any conditions
c. The real estate agent for the buyer looks bad
d. All of the answers shown
44. The biggest factor in influencing the energy consumption of a home is ________.
a. The “tightness” of the home
b. Utility rates
c. The occupants of the home and their habits and desires to be warm or cool
d. The price of crude oil
45. One of the most valuable tools when working with any buyer is to have them put together a wish list of everything that they want a home to have. Once the list is complete, the buyer should indicate their top ________ choices.
a. 1
b. 3
c. 5
d. 10
46. Real estate agent Joe has identified a home at a great price and in a great location, which has all of the features that John and Jan desire. The only problem with the home is that it has a septic system, which they did not want. Should Joe show the home to John and Jan?
a. Yes, because John and Jan are going to need to determine how important the requirement to have a septic system is
b. The cost of maintenance
c. No, Joe did not like the house
d. Maybe, this is a judgment call by the agent, with no clear answer
47. The blower door test, coupled with an infrared camera, is used to _________________.
a. A. Assess the tightness of the building envelope and determine where air is being lost
b. B. Determine how often the air is being changed within the home
c. C. Determine indoor air quality
d. Both B and C
48. Joe has a new client that he is working with and has been pre-qualified for a mortgage of $475,000. Including his down payment and closing costs he can afford a home with a list price of $700,000. In addition, the client has signed an exclusive agency agreement. Although, the client is not sure of the features that he wants, he has a list of 87 homes that appeal to him, which he found in various real estate publications. What is the next step for Joe?
a. Start making appointments to view the properties
b. Work with his client to determine a list of features that are desirable
c. Filter the client’s search result by price
d. None of the above
49. John is a real estate agent working with a brand new buyer. The buyer has identified 75 properties that he wants to see in their first meeting. What is the first thing that John should do?
a. Jump in the car and start looking
b. See if he has been pre-qualified or pre-approved for a mortgage
c. Filter the properties to narrow the list to no more than 4 properties
d. Throw the listing papers up in the air and choose the listings that land face up.
50. The goal of a buyer ranking their priorities is to ____________.
a. Assist the agent in narrowing down the search for suitable properties
b. Force the buyer to set their priorities
c. Assist in managing the client’s expectations that compromises are going to be necessary because a house that has everything does not exist unless the client is willing to build a custom home.
d. All of the answers shown
51. When working with a buyer the better that you can understand their ________, the faster the real estate agent will find the right property.
a. Wants
b. Needs
c. Must haves
d. Dreams
52. In addition to having a client sign an agency agreement with the brokerage firm at the first meeting, what else should the agent do?
a. Get all of the client’s contact information
b. Discuss their needs
c. Have the client pre-qualified
d. All of the answers shown
53. In dealing with clients in a real estate transaction, one of the key things that every real estate agent should do is to _____________.
a. Be their client’s friend
b. Manage the client’s expectations
c. Allow them to directly participate in the face to face negotiations with the seller
d. All of the answers shown
54. In general, recent data has shown the most popular feature in a home for a first time homebuyer is a _____________.
a. Walk in closet
b. Gourmet Kitchen
c. Master bathroom
d. Outdoor deck
55. Jane and John absolutely loath their 1.5 hour commute each way into Washington D.C. from suburban Maryland and this was the only reason they sold their home, which they both loved. They have been pre-qualified for their mortgage, and can afford a home up to 1,000,000 because of the equity that they have in their existing home. As their real estate agent which house are you going to show?
a. A home with similar features that is 10 minutes closer
b. A home in a different area with the same features of their older home, but is near a subway station, which will reduce their commute by 1 hour each way
c. A larger home with many of the same features of their old home that is an excellent value, but still results in an 1.5 hour commute each way
d. None of the above
56. Which type of buyer are you likely dealing with in the following scenario? She gives off the perception that she does not really want to buy a home. She is nit-picking every detail and seems impossible to satisfy.
a. Open Buyer
b. Excited Buyer
c. Negative Buyer
d. Just the Facts
57. Assuming that a client needs financing, what is the downside to a real estate agent that spends time showing homes to a client without pre-approval of a mortgage?
a. The agent does not know if they can actually buy a home
b. The agent could be showing them homes that the client cannot afford
c. The agent does not know if the client is really serious about buying a home
d. All of the answers shown
58. The best solution to determining the energy efficiency of a home is _____________.
a. An energy audit
b. Asking the previous owner
c. Calling the utility company
d. Ask the home inspector
59. One of the downsides of a ducted forced hot air furnace system is ___________.
a. The cost of energy
b. The cost of maintenance
c. That maintenance includes a periodic duct cleaning
d. All of the answers shown