Many Americans’ most valuable asset is their home, and selling it can be nerve-racking.
Strategic blunders are often costly, especially in today’s beleaguered market. Take our quiz to test your knowledge:
1 OF 7
When inventory is high and demand is low, what is typically the best pricing strategy for getting the highest offer while still selling the home quickly?
A) Set a low asking price to attract multiple offers.
B) Calibrate the asking price based on what comparable houses nearby sold for in the last month or so.
C) Calibrate the asking price based on what comparable houses nearby sold for in the past year.
D) Initially price the home at a premium to test the market, and plan to cut the price a week later if needed.
2 OF 7
The commission sellers pay to their agent’s brokerage is:
A) Fixed by state or federal law
B) Set at 6%
C) Set at 3%
D) Negotiable between the seller and the broker
3 OF 7
When preparing a home for sale, which of the following would typically provide the best return on investment?
A) Applying a neutral coat of paint in the living room
B) Buying a new couch and coffee table
C) Installing a new kitchen countertop
D) Remodeling the en-suite bathroom
4 OF 7
How can a professional prelisting inspection benefit a seller?
A) It legally shields the seller from disclosing known property defects to the buyer.
B) It gets rid of the need for the buyer to order his or her own inspection, potentially speeding up the closing process and saving the buyer money.
C) It allows the seller to address necessary repairs ahead of time, reducing the chance of price renegotiation or the deal falling apart later.
D) It gives the seller a right to turn down any repair requests from the buyer after the offer is formally accepted.
5 OF 7
In what month do median home sale prices peak?
A) January
B) April
C) June
D) July
6 OF 7
A seller accepts an offer of $500,000 that includes an appraisal contingency. The official bank appraisal comes back at $470,000. Which of the following outcomes is least likely?
A) The seller agrees to lower the sale price to the appraised value of $470,000.
B) The seller issues a notice of termination and places the home back on the market.
C) The seller is forced to cover the $30,000 gap in cash before the lender will approve the loan.
D) The buyer terminates the contract and receives earnest money back.
7 OF 7
A seller is never required to disclose whether the property is believed to be haunted.
True
False
Answers:
1. B
2. D
3. A
4. C
5. C
6. C
7. False