Module 1 Lesson 1 Flashcards

Question

Residential Condominiums

Answer 1

Condominiums offer a distinct type of form of ownership that includes ownership of a specific unit with shared ownership of the common property.

Answer 2

Sales of rural, recreational and agricultural properties requires a unique skill set and can be a challenge for those who are not familiar with the rural lifestyle. Depending where you are located, the prevalence of rural land will determine the amount of exposure you have to listing and selling these property types.

Answer 3

Larger centres can have one or more brokerages focused solely on commercial transactions, or a brokerage may have a few salespersons who will focus their activities on commercial rather than any residential sales. In some areas, a salesperson may trade in both commercial and residential properties, however you should understand that commercial sales can be quite complex. Working in the commercial market can be more specialized as there are different commercial segments, each requiring their own skill set.

Answer 4

Many salespersons will provide services related to leasing properties for the owners. Leasing will require a comprehensive understanding of the legislation impacting commercial tenancies. Above average people skills are important as interactions with tenants can present quite a diverse consumer base.

Answer 5

An agreement to list a property is documented by a seller representation agreement between the seller and the brokerage. Although the agreement is with the brokerage, the salesperson working directly with the seller will perform the duties agreed on the agreement

Answer 6

A seller will want to know what will be done to advertise and market the property to obtain an acceptable offer within their required time period. As such, the marketing plan for the seller’s property will need to take into consideration any unique aspects of the property or any requirements of the seller. Typically, all advertising is done at the expense of the salesperson and is a cost borne whether the property sells or not. An effective marketing plan is important to both the seller and you.

Answer 7

Prospecting involves searching for qualified buyers for the listed property and includes more than placing a sign on the property or showcasing the listing on a website. The property in terms of type, location, and price range should provide you with a profile of a typical buyer. You will then be able to target market activities accordingly.

Answer 8

Showing the property to a prospective buyer could occur immediately after it has been listed for sale, so the property needs to be ready. If any repairs or maintenance is required, this should be completed before the home is viewed. When showing the property to a prospective buyer, ensure you are familiar with the home; that is, be able to show the property as if it was your own home. For example, know where the light switches are in every room and be able to describe how much closet space there is without opening a closet door.

Answer 9

Qualifying involves first determining the buyer’s needs and wants, and ensuring any property shown falls within their financial abilities. When working with buyers, you should select a limited number of properties to show for each outing based on the information obtained during the qualifying process. The purpose of selecting a few properties is to avoid confusion over what features were in each property viewed, and to continue to define the buyer’s needs and wants. Showing and providing accurate and complete information to the buyer will assist them in their decision making. Accurately keeping feedback on the properties shown to the buyer will assist when preparing an offer.

Answer 10

A buyer may specifically tell you they would like to place an offer on a property. Other times, you may need to pay close attention to their actions and words which indicate they are ready. Having a good rapport with the buyers will make the transition from “viewing properties” to “making an offer” on a property less stressful for the buyer. Drafting an offer is complex and involves a significant amount of information and detail that must be accurate and complete. You will be expected to draft an offer which includes all of the terms and conditions required by the buyer. Buyers may be relying on your advice to assist in preparing an offer that promotes and protects their best interests while at the same time, ensuring the seller is treated with fairness and honesty.

Answer 11

As the listing salesperson, you will guide the seller through the offer presentation and negotiations. This involves analyzing the buyer’s offer, ensuring the seller is aware of any market conditions or other circumstances they should take into consideration, and providing advice to help them arrive at a well informed decision. The seller may accept, reject, or counter the buyer’s offer. Countering an offer means the seller signs an offer to sell the property to the buyer under different terms. You should be prepared, as these negotiations can be challenging and complex. Always ensure decisions are based on sound judgement and not the heightened emotions associated with negotiating an offer.

Answer 12

The transaction must be monitored after the offer has been accepted because there may be one or more conditions that must be satisfied by the seller or the buyer before the offer becomes binding. This is known as the conditional time period of an offer.

Answer 13

- Application review fee - Salesperson registration fee - RECO insurance program premium- mandatory - start up costs- website, business cards, updating or purchasing the tools needed to get started

Answer 14

- Education and profession development - Registration renewal every two years - Annual premium for the RECO insurance program - Marketing and advertising expenses - Other business expenses

Answer 15

working with the seller

Answer 16

working with the buyer

Module 1 Lesson 1 Flashcards

(40 cards)