Unit 1: Getting Started in Real Estate

Question 1

The real estate marketplace is said to be a _____ Market

Answer 1

Stratified

Question 2

Stratified

Answer 2

The market behaves differently based on the price range you’re in

Question 3

Buyer’s Market

Answer 3

Many Sellers and Few Buyers. Sellers must compete for the available buyers, which usually means lower prices.

Question 4

Seller’s Market

Answer 4

Buyers must compete among themselves for properties. In a seller’s market, there may be multiple offers for a property. Prices will increase in a seller’s market

Question 5

Will Sell Sellers

Answer 5

Those who don’t need to sell but who will sell if the price is right.

Question 6

Must Sell Sellers

Answer 6

Seller is highly motivated or desperate. The price asked could be less than the sale prices of similarly desirable properties.

Question 7

Will-Buy Buyers

Answer 7

Buyers who don’t really have to buy. Generally, they look for must-sell sellers; Bargain Hunters.

Question 8

Must-Buy Buyers

Answer 8

Generally, look for properties that meet their specific needs. They like bargains but are more likely to pay a reasonable price.

Question 9

Independent Contractor Criteria (IRS)

Answer 9

1. The salesperson is licensed as a real estate agent
2. Reimbursement to the salesperson is based solely on sales, not hours worked
3. There is a written contract stating that the salesperson will be treated as an independent contractor for tax purposes

Question 10

Worker’s Compensation Insurance

Answer 10

Brokers must carry Workers’ Compensation Insurance