Cha-ching: Test Your Home Selling Smarts Quiz

Estimated Completion Time
3 min
Cha-ching: Test Your Home Selling Smarts Quiz
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About This Quiz

Selling a home can be one of the biggest decisions of your life, and the ensuing process can be one of the most stressful. Selecting a reliable and experienced listing agent is a good way to lighten the load, but you still need to know the ins and outs of home selling to keep your agent honest. Take this quiz to see just how savvy you are when it comes to selling a home.
According to the National Association of Realtors, houses sold through an agent sell for how much more than homes sold by owner, on average?
5 to 6 percent
1 to 2 percent
3 to 11 percent
10 to 12 percent
Correct Answer
Wrong Answer

Agents have marketing knowledge and connections that allow them to draw more prospective buyers to homes, which almost always results in a final sales price that is 3 to 11 percent higher.

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What is the typical commission charged by real estate listing agents?
5 to 6 percent
6 to 7 percent
7 to 8 percent
8 to 9 percent
Correct Answer
Wrong Answer

A listing agent's commission is typically between 5 and 6 percent and often negotiable, but they usually won't go much lower than 4 percent, unless you are using a discount agent.

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Listing agents have access to the MLS (Multiple Listing Service). What is the MLS?
a database of other real estate agents
a database of local homes that are listed for sale
a software program that calculates fair market value
a software program that helps draft listing agreements
Correct Answer
Wrong Answer

The MLS is a database of homes for sale that can help agents find recent comparable sales, and expose your listing to buyers' agents and other brokers so that a home attracts a maximum number of interested buyers.

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What is the difference between a Realtor and other listing agents?
Nothing, they are the same thing.
Realtors are real estate agents that belong to the National Association of Realtors.
Realtors are licensed by the state; other agents are not.
Realtors are paid higher commissions.
Correct Answer
Wrong Answer

As members of the National Association of Realtors, Realtors follow a stricter code of ethics and complete more educational training than other agents. But a real estate agent does not need to be a Realtor to legally work as an agent.

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True or False: You should always choose the listing agent who offers to list your home for the highest amount.
TRUE
FALSE
Correct Answer
Wrong Answer

Often, agents who promise a listing price high above market value are trying to "buy" your commission by quoting a price they know they will have to change later when it doesn't attract buyers.

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A Comparative Market Analysis (CMA) is a useful tool in selecting a listing agent. What is the purpose of a CMA?
a method of comparing different agents' marketing strategies
a method of comparing an agent's commissions to other agents
a method of judging the overall health of the real estate market
a method of calculating a listing price using recent sales statistics of homes similar to yours
Correct Answer
Wrong Answer

An agent should be able to present you with a CMA when you interview them that provides a listing price they've generated using recent sales statistics of homes similar to yours. If the analysis is consistent with your own research of market values in your area, it's a sign of a skilled agent.

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Which of the following is NOT a good way to find referrals for listing agents?
by looking at billboards
by asking trusted friends
by asking real estate lawyers
by asking mortgage lenders
Correct Answer
Wrong Answer

Just because an agent has a large amount of publicity and advertising doesn't mean they are the best choice. Ask people you trust who have recently sold a home, and professionals who frequently work with agents, to find good referrals.

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True or False: You should always choose the listing agent who has the most completed sales in your area.
TRUE
FALSE
Correct Answer
Wrong Answer

Agents with extremely high volume may not offer the personal attention that you need in a listing agent. If they don't return your calls and you're constantly dealing with an assistant, you aren't getting what you need from them.

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What information should you disclose to your listing agent before you have signed a listing agreement with them?
nothing
the reason you are selling your home
your opinions on how your house will do in the market
what problems you might run into in selling your house
Correct Answer
Wrong Answer

Before signing an agreement, don't tell the agent anything you don't want being passed around to other agents and prospective buyers. Wait until you have legally agreed to work together before giving away sensitive information.

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In some states, it is illegal to disclose to buyers a recent death resulting from which of the following illnesses?
cancer
AIDS
heart disease
diabetes
Correct Answer
Wrong Answer

States have different laws governing whether you need to let buyers know about deaths that have occurred in your home. In some states that require those disclosures, AIDS-related deaths are exempt as a civil rights protection.

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True or False: The longer a home is on the market, the better the final sales price will usually be.
TRUE
FALSE
Correct Answer
Wrong Answer

In most cases, a longer period on the market equals a lower sales price because it indicates less interest from buyers.

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Which of the following is the best thing to tell your listing agent about the price you expect for your home?
nothing, let them do the talking
the lowest price you would ever accept
a price that will make you a certain amount of equity
a price equal to a recent property tax valuation
Correct Answer
Wrong Answer

It's best to let the listing agent set the listing price of the home based on fair market value. That value should be based on recent comparable sales of homes similar to yours in your area.

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Which of the following disclosures about your financial situation should you make to your listing agent?
that you lost your job
the amount of your debt
all of the above
none of the above
Correct Answer
Wrong Answer

You shouldn't share your financial distress with the agent so you can avoid your home being marketed as a "motivated seller," and drawing a lower sales price.

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State laws require that you disclose which of the following facts about your listed home to prospective buyers?
what color paint you have used in the past
whether the home has high speed Internet connectivity
serious damage to the home
the house is haunted
Correct Answer
Wrong Answer

States have different expectations when it comes to disclosures of material information, but the majority of them require that you and your agent inform prospective buyers of damages to the home.

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True or False: You should tell your listing agent if you are selling your house because of a divorce.
TRUE
FALSE
Correct Answer
Wrong Answer

You don't want the agent to slip up about the divorce to potential buyers. Buyers who think that a seller is desperate to leave will make extremely low offers.

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True or False: You should tell your listing agent if you are selling your house because of a serious illness.
TRUE
FALSE
Correct Answer
Wrong Answer

Just like with a divorce, potential buyers might make insultingly low offers to try to take advantage of a desperate situation.

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How long should a listing agreement be in effect without a sale before it expires?
three months, at most
one year, at least
exactly six months
exactly one month
Correct Answer
Wrong Answer

Three months gives the agent long enough to give the sale their best shot, but also gives you an opportunity to move on if you're not satisfied with their services.

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What quality should you look for in a listing agent?
membership in the National Association of Realtors
specialization with only certain types of properties
experience in a wide geographical area
experience with many different types of homes
Correct Answer
Wrong Answer

Specialization with properties similar to your own shows that your agent has experience that will help get the best price for your home. If they have worked in a very wide geographical area, with a wide variety of properties, they may not be as knowledgeable about your specific niche.

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Federal law provides protection against discrimination for home buyers making offers on a home. Which of the following is NOT a protected status at the federal level?
race
criminal history
religion
handicap
Correct Answer
Wrong Answer

Some states provide protection for convicted felons, but the federal law only protects on the basis of race, color, national origin, religion, handicap, sex and family make up.

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True or False: An agent's recently completed sales should have a high average number of days on the market (DOM)?
TRUE
FALSE
Correct Answer
Wrong Answer

A good agent's recent sales should have a low average DOM. This shows that the agent is able to attract interested buyers and make a sale quickly.

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You Got:
/20
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