Deck 5: The Buyer Representative

Question 1

Typically, a lender uses a formula referred to as ___ to determine a buyer's ability to pay a loan.

Answer 1

housing expense ratio

Question 2

A loan guarantee usually comes in the form of ___.

Answer 2

collateral

Question 3

___ is the product of the difference between assets and liabilities.

Answer 3

Net worth

Question 4

Mortgage lenders evalute motivation to pay using ___.

Question 5

What are some techniques a buyer representative can use to ease the buyer's anxiety during closing?

A) closing on a single objection
B) assumptive close
C) summarizing advantages
D) the balance sheet approach
E) security

Question 6

What are some decisions a buyer representative must make with respect to showings?

A) staging
B) number of showings
C) open house dates
D) method of presentation
E) time of showings

Question 7

What are some things a buyer representative might ask about to determine their client's property needs?

A) down payment
B) number of bedrooms
C) area preference
D) move-in timetable
E) price range

Question 8

What are some criteria that can be used to refine a list of renters when looking for prospective buyers?

A) income
B) gender
C) size of family
D) age
E) ethnicity

Question 9

Which of the following are techniques of active prospecting for the buyer representative?

A) directories
B) direct inquiry
C) farming
D) buyer seminars
E) renters

Question 10

What is one of the advantages to using the summarizing advantages approach to closing?

A) it helps the buyer make a rational and informed decision
B) it increases the buyer representative's commission by making their client happy with accepting a higher price
C) it elicits the buyer's commitment by addressing objections
D) it shows the buyer the clear value of moving forward
E) it helps consolidate the buyer's positive feelings to move forward

Question 11

Guarantees on loan repayment in the case of defaults are referred to as ___.

Question 12

___ refers to the process in which the buyer representative takes their client on the road to show them selected properties that the buyer representative believes may fit the client's needs.

Question 13

Holding a ___ for a community may encourage prospective clients to contact the buyer representative if they are impressed with the expertise and capabilities on display.

Question 14

The ___ method of prospecting refers to online promotion, generally in the form of a buyer representative website.

Question 15

The ___ method of buyer representative prospecting involves asking former clients to identify people they know who may be thinking of buying a real estate property.

Question 16

Direct mail, direct response advertising, and contacting sellers associated with open houses are all methods of ___.

Question 17

___ prospecting methods are ways to identify and contact prospective clients that requires the buyer representative to actively seek out prospects rather than sitting back and having prospects contact them.

Question 18

The deal is sealed when the buyer signs an ___, an agreement that states the buyer has accepted to purchase the property for a specified amount and will pay a sum of money to demonstrate their intent.

Question 19

When using the ___ closing technique, the buyer agent summarizes advantages as well as disadvantages of the property, sometimes in a comparative fashion, and helps the client make a rational decision.

Question 20

The ___ technique involves having the buyer agent develop a synopsis of all the advantages related to the purchase of the property.

Question 21

In an ___ close, the buyer agent assumes the client is comfortable with the target property and would like to move to closing.

Question 22

Which of the following would you most likely find on a balance sheet of a person with high net worth?

A) high financial assets and liabilities, nearly equal in scale
B) low financial assets and high liabilities
C) high financial assets and low liabilities
D) low financial assets and low liabilities
E) no liabilities or financial assets

Question 23

What is the maximum housing expense ratio allowed by most lenders?

A) 0.4
B) 0.28
C) 0.38
D) 1
E) 0.1

Question 24

What formula is typically used to determine a buyer's ability to pay?

A) the housing expense ratio
B) the cost method
C) the income formula
D) net worth
E) compound interest

Question 25

Most buyer representatives will happily do an informal qualification for clients who are not yet qualified.

Question 26

The process of qualifying a prospect as done by the buyer representative is a formal process which contains numerous regulations that vary by state and municipality.

Question 27

Most professionals in real estate marketing agree that real estate agents should be integrally involved in qualifying the prospect.

Question 28

The key to good buyer representative is the ability to match a client's needs with the features of available properties.

Question 29

Fostering connections with third party relocation companies is effective in both residential and commercial real estate.

Question 30

Canvassing is only effective when the buyer representative can use a referral.

Question 31

Canvassing typically applies to commercial real estate marketing, not residential real estate.

Question 32

Referrals are only effective if the clients are happy with the service provided by the buyer representative.

Question 33

The directories method of prospecting involves the use of open house registries to identify prospective buyers.

Question 34

Even if they do not intend to take on clients who are not yet qualified, buyer representatives should be familiar with methods used by lenders to qualify prospective clients.

Question 35

Commercial real estate showings are generally done during the day on weekends.

Question 36

What is the principal motivation for having the buyer representative informally qualify the prospect?

A) it will help the buyer temper their expectations
B) it reduces stress on the already overtaxed lenders
C) it allows the buyer representative to begin showing sooner
D) it must be done by law or the agent will run afoul of federal regulations
E) there is no motivation and it should never be done

Question 37

In what situation will a real estate agent have to do prospect qualifying himself?

A) in cases where lenders are reluctant to use resources without knowing with certainty that the buyer will become a client
B) in cases where the real estate agent has background in lending and is thus qualified to qualify prospects
C) in cases where waiting for the determination of a lender does not fit the client's timetable
D) a real estate agent must always qualify the prospect
E) a real estate agent should never qualify the prospect

Question 38

Which of the following is a step in qualifying the prospect?

A) negotiating with the seller
B) assessing a buyer's ability to pay the loan
C) building a financial profile
D) manning the floor
E) learning about property needs

Question 39

What type of institutions can a real estate representative volunteer for in order to gain a reputation for community involvement?

A) educational institutions
B) law enforcement institutions
C) religious institutions
D) all of the above
E) none of the above

Question 40

Which of the following is an example of the directories method for buyer prospecting?

A) looking at open house registries and making contact with sellers
B) examining the referral directory at the office
C) posting information to a website and waiting for prospective buyers to make contact
D) searching a staff directory for people who will likely be looking to retire
E) farming communities so that the buyer representative will be listed in directories of notable representatives

Question 41

What is the first stage of the personal selling cycle for a buyer representative?

A) needs assessment
B) showing
C) closing
D) negotiation
E) prospecting

Question 42

The buyer representative does not have to deal with any dissatisfaction the buyer experiences after the transaction has been completed.

Question 43

Closing refers only to the process of extracting a commitment from the client to seal the deal.

Question 44

Most buyers feel anxious during the closing phase.

Question 45

A majority of homebuyers expect agents to educate them on the buying process.