Test your Real Estate I.Q.

These thought provoking questions will add amazing insight for the consumer into the world of Real Estate.  See how well you know the in's and out of the industry, and compare your score against the masses.

 

Question #1 

How many homes do you think that the average real estate agent in Massachusetts sold in the past year?

A: 7-9 Homes
B: 15-20 Homes
C: 25-30 Homes
D: 50-60 Homes

Question #2

How many annual homes sales does it take to be the "Top Producer" in typical Massachusetts Real Estate office.  A "Million Dollar Club Member"

A: 10-20 Homes
B: 20-30 Homes
C: 30-40 Homes
D: 40+ Homes

Question #3 

How many individual real estate transactions do you think Steve Levine was involved in in 1999?

A: 20-30 Transactions
B: 30-50 Transactions
C: 50-100 Transactions
D: 100-150 Transactions


Question #4

What criteria  is quoted by people as the single most important thing they will consider when they select an agent to market their current home? (Remember, this is what they say, not necessarily what they actually do.)

A: History of past sales in the neighborhood, based on final sales price and time on market
B: Recommendations of friends who have used a particular agent before
C: Random selection of an agent, based on an advertisment, mailing, or random chance encounter
D: Employers "relocation company" told them to use a particular company, and they assigned an agent.

 

Question #5

Which of the following criteria is ACTUALLY the way most people finally wind up selecting an agent to market their home.

A: History of past sales in the neighborhood, based on final sales price and time on market
B: Recommendations of friends who have used a particular agent before
C: Random selection of an agent, based on an advertisment, mailing, or random chance encounter
D: Employers "relocation company" told them to use a particular company, and they assigned an agent.

 

Question #6

Your company has notified you that you are being transferred. Part of the program includes a "buy-out" option, in which if you are unable to sell your home on your own, the company will buy it. You receive a call from a "Relocation Counselor" who informs you that they need to arrange for 2 appraisals of your home to establish fair market value for your buy out. 

The first step you want to do is:

A: Make an appointment for the two appraisers to come to your home when you can be there.
B: Select the Realtor who will ultimately be marketing the home, and have a market analysis done.
C: Tell the Relocation Company you'll call them back to schedule, and stall them for 2 weeks.
D: Get your home on the market as soon as possible and overprice it by $10,000.

 

Question #7

After a week on the market, you get a phone call that there are 3 offers on the house. How do you proceed?

A: Accept the full price offer from  Buyer#1, a renter  with 10% down, and a  pre-approval letter  .
B: Accept the full price offer from Buyer #2, an incoming relo with 50% down, a pre-approval letter, and their current home in California on deposit and scheduled to close the week before yours.
C: Accept an offer of $3000 below full price from a cash Buyer#3 with a 90 day closing date.IB
D: None of the above.

Question #8

You're moving into Massachusetts, and it is clearly a Sellers market, with very few listings to select from. Which of the following do you do.

A: Work with an "Exclusive Buyers Agent" in Massachusetts who takes no listings and thus has no potential conflicts of interest.
B: Work with a good agent, but not the "Top Agent" in the area, so that they will have more time to devote to your home search.
C: Work with the "Top Agent" in the area, in the hopes of learning about the hot new listings in advance of their hitting the general market.
D: Work with an agent at each Real Estate firm in the area, hoping that each one will feed you information

Question #9

In the past 6 months, the Federal Reserve has raised the Discount Rate 3 times, and is likely to do so again in the hopes of slowing the economy.  You are building a new home which will be ready in 120 days.  The lender has offered you a "Free 120 day rate lock" if you agree to use them for your mortgage. Which of the following do you do?

A: Use that lender and take advantage of the "Free 120 day Lock"
B: Use a different lender and don't lock the rate until 60 days before closing, because the Federal Reserve decision does not increase mortgage rates, but may decrease them.
C: Use that lender but let the rate float until 60 days before the closing.
D: None of the above

Question #10

You are coming from a slightly less costly area, and feel that you are likely to be in your home for no more than 5 years before being transferred.  Your company offers to pay 2 discount points towards your mortgage. Which of the following represents the best mortgage program for you?

A: A 30 year fixed rate at 7.875% with 2 points.
B: A 5/1 Five year ARM at 7.5% with 2 points.
C: A 1 year adjustable at 6.5% with 2 points.
D: A "Lender Funded 2-1 Buydown" with a terminal rate of 8.375% with 2 points.