POST LICENSE EXAM QUESTIONS AND ANSWERS
Acronym for Prospecting Methods - Answers :FOLC
FOLC stands for - Answers :F - Farming, FSBO, Floor, Duty, Foreclosures
O - Open House
L - Listings
C - Canvassing
FSBO websites - Answers :landvoice.com
realtytrac.com
Who established the Do Not Call Registry? - Answers :Federal Trade Commission
(FTC)
How many years does a number stay on the DNCR? - Answers :5 years
Possibly penalty for violating DNCR? - Answers :up to $11,000
New licensees should include how many homes in their first farm? - Answers :100-250
what is an up call - Answers :when an individual calls in to someone on floor duty and
specifically asks for someone else by name.
Why is MLS a good prospecting tool? - Answers :Lets you know if an area is being
farmed or not and is a good source for internet leads.
Most competitive niche market: - Answers :Expired listings
Most popular way to find expired listings is by? - Answers :Using MLS. Listings expire
every day so it can be used daily.
The advantages of starting out with a mailer when trying to win an expired listing is -
Answers :1. It breaks the ice with the prospect before more direct contact takes place
2. they give you time and space to address the concerns of these particular owners,
build up their confidence that a solution is possible and explain why you are most
qualified person to deliver the services.
6 goals of follow-up communications with expired listing prospects: - Answers :1. Build
up confidence in the owner
2. Avoid negativity and blame towards owner and initial salesperson.
3. Before you start providing solutions, invite owners to tell you why they think the house
didn't sell.
4. Invites them to disclose factors of any past offers and why they were rejected.
5. Illistrates your successin helping other expired listings sell.
,6. Outliines your plan step-by step to help their property sell. Tailor your solutions to the
six factos of "why homes dont sell"
7. Send hand-written thank you letter after each personal visit despite the outcome.
What is the 7th prospecting technique? - Answers :Canvassing
A good rule to follow is to always try to transform your cold canvassing efforts into:
a) referrals.
b) FSBOs.
c) DNCRs.
d) HMOs. - Answers :referrals
Licensees should hold open houses in order to:
a) prospect for new clients and customers as well as help their sellers come in contact
with a larger number of potential buyers.
b) simplify the selling process by soliciting both the business of potential buyers of that
property and the owner.
c) save time as this function can be delegated to an assistant.
d) save money as an open requires little advertising effort. - Answers :simplify the
selling process by soliciting both the business of potential buyers of that property and
the owner.
What is caveat emptor? - Answers :"Latin for "let the buyer beware." This principle
colors everything that goes on between real estate professionals and consumers in the
process of purchasing used homes and properties (not new ones) in the state of
Alabama.
In the strictest sense, caveat emptor maintains that at the time an individual buys a pre-
owned piece of real estate he or she does so "as is." Therefore, it's imperative that
purchasers ask questions, explore, learn about and inspect the intended investment as
much as possible before signing on the dotted line. The ultimate task of discovery falls
completely on their shoulders, not the seller's.
Cochran v. Keeton - Answers :AL Supreme Court Case in 1971. Helped mitigate Caveat
Emptor...but only for NEW realty.
Cashion v. Ahmadi - Answers :1977. Significant in not only AL but other states as well.
In Cashion v. Ahmadi, the buyer sued the seller and licensee after the new owner found
leaks in the basement. The court ruled in favor of the seller, stating that the original
owner and licensee didn't have to voluntarily disclose defects unless:
- Directly asked by the buyer or the buyer's agent about it;
- It was known of beforehand; and/or
- The problem could endanger the health or safety of the buyer.
Ray v. Montgomery - Answers :Again the buyer sued the seller for a deficiency in the
home; this time over severe termite damage. And, for a second time, the court ruling
favored the seller because of caveat emptor. Although in this case the damage did fit
, the definition of a "health or safety" risk, the condition was one that could and should
have been noticed by the buyer beforehand.
To recap, the court rulings of the 1977 and 1980 cases have left us with this significant
takeaway: Buyers can't successfully sue sellers of pre-owned homes and/or their
licensees unless they can prove that: - Answers :- The property has a severe problem
which threatens (or will threaten) the buyer's health or safety;
- The previous owner and/or licensee were aware of this damage before the transaction
was completed;
- The defect isn't one that is reasonably apparent to the buyer either by inspecting the
property and/or through questions to the owner and/or agent; and
- The property wasn't sold "as is."
What is "material fact"? - Answers :Material facts must also be accurately represented.
These facts are anything "that would be a significant factor to a reasonable and prudent
person in making a decision to purchase." Besides conditions that affect the property,
these items can include but aren't limited to:
School district information;
Zoning laws;
Safety (police and fire department services); and/or
Property tax issues.
Remember, licensees always have the duty to answer truthfully and accurately to any
direct question-whether buyer or seller poses it and despite which party they're serving-
concerning these facts.
What prospecting technique does not have to be in the confines of your farm? -
Answers :Canvassing and cold-calling
What is canvassing? - Answers :Soliciting new business via mail, phone calls, or visits.
Licensees should hold open houses in order to:
a) prospect for new clients and customers as well as help their sellers come in contact
with a larger number of potential buyers.
b) simplify the selling process by soliciting both the business of potential buyers of that
property and the owner.
c) save time as this function can be delegated to an assistant.
d) save money as an open requires little advertising effort. - Answers :
The four main benefits of holding an open house include all of the following, except:
buyers are given an extended period of time to look over and ask questions about a
property.
sellers are given access to a larger pool of buyers without holding multiple
appointments.
licensees have a greater chance to be of service to their clients.
sellers are given an extended period of time to look over and ask questions about a
property. - Answers :
Acronym for Prospecting Methods - Answers :FOLC
FOLC stands for - Answers :F - Farming, FSBO, Floor, Duty, Foreclosures
O - Open House
L - Listings
C - Canvassing
FSBO websites - Answers :landvoice.com
realtytrac.com
Who established the Do Not Call Registry? - Answers :Federal Trade Commission
(FTC)
How many years does a number stay on the DNCR? - Answers :5 years
Possibly penalty for violating DNCR? - Answers :up to $11,000
New licensees should include how many homes in their first farm? - Answers :100-250
what is an up call - Answers :when an individual calls in to someone on floor duty and
specifically asks for someone else by name.
Why is MLS a good prospecting tool? - Answers :Lets you know if an area is being
farmed or not and is a good source for internet leads.
Most competitive niche market: - Answers :Expired listings
Most popular way to find expired listings is by? - Answers :Using MLS. Listings expire
every day so it can be used daily.
The advantages of starting out with a mailer when trying to win an expired listing is -
Answers :1. It breaks the ice with the prospect before more direct contact takes place
2. they give you time and space to address the concerns of these particular owners,
build up their confidence that a solution is possible and explain why you are most
qualified person to deliver the services.
6 goals of follow-up communications with expired listing prospects: - Answers :1. Build
up confidence in the owner
2. Avoid negativity and blame towards owner and initial salesperson.
3. Before you start providing solutions, invite owners to tell you why they think the house
didn't sell.
4. Invites them to disclose factors of any past offers and why they were rejected.
5. Illistrates your successin helping other expired listings sell.
,6. Outliines your plan step-by step to help their property sell. Tailor your solutions to the
six factos of "why homes dont sell"
7. Send hand-written thank you letter after each personal visit despite the outcome.
What is the 7th prospecting technique? - Answers :Canvassing
A good rule to follow is to always try to transform your cold canvassing efforts into:
a) referrals.
b) FSBOs.
c) DNCRs.
d) HMOs. - Answers :referrals
Licensees should hold open houses in order to:
a) prospect for new clients and customers as well as help their sellers come in contact
with a larger number of potential buyers.
b) simplify the selling process by soliciting both the business of potential buyers of that
property and the owner.
c) save time as this function can be delegated to an assistant.
d) save money as an open requires little advertising effort. - Answers :simplify the
selling process by soliciting both the business of potential buyers of that property and
the owner.
What is caveat emptor? - Answers :"Latin for "let the buyer beware." This principle
colors everything that goes on between real estate professionals and consumers in the
process of purchasing used homes and properties (not new ones) in the state of
Alabama.
In the strictest sense, caveat emptor maintains that at the time an individual buys a pre-
owned piece of real estate he or she does so "as is." Therefore, it's imperative that
purchasers ask questions, explore, learn about and inspect the intended investment as
much as possible before signing on the dotted line. The ultimate task of discovery falls
completely on their shoulders, not the seller's.
Cochran v. Keeton - Answers :AL Supreme Court Case in 1971. Helped mitigate Caveat
Emptor...but only for NEW realty.
Cashion v. Ahmadi - Answers :1977. Significant in not only AL but other states as well.
In Cashion v. Ahmadi, the buyer sued the seller and licensee after the new owner found
leaks in the basement. The court ruled in favor of the seller, stating that the original
owner and licensee didn't have to voluntarily disclose defects unless:
- Directly asked by the buyer or the buyer's agent about it;
- It was known of beforehand; and/or
- The problem could endanger the health or safety of the buyer.
Ray v. Montgomery - Answers :Again the buyer sued the seller for a deficiency in the
home; this time over severe termite damage. And, for a second time, the court ruling
favored the seller because of caveat emptor. Although in this case the damage did fit
, the definition of a "health or safety" risk, the condition was one that could and should
have been noticed by the buyer beforehand.
To recap, the court rulings of the 1977 and 1980 cases have left us with this significant
takeaway: Buyers can't successfully sue sellers of pre-owned homes and/or their
licensees unless they can prove that: - Answers :- The property has a severe problem
which threatens (or will threaten) the buyer's health or safety;
- The previous owner and/or licensee were aware of this damage before the transaction
was completed;
- The defect isn't one that is reasonably apparent to the buyer either by inspecting the
property and/or through questions to the owner and/or agent; and
- The property wasn't sold "as is."
What is "material fact"? - Answers :Material facts must also be accurately represented.
These facts are anything "that would be a significant factor to a reasonable and prudent
person in making a decision to purchase." Besides conditions that affect the property,
these items can include but aren't limited to:
School district information;
Zoning laws;
Safety (police and fire department services); and/or
Property tax issues.
Remember, licensees always have the duty to answer truthfully and accurately to any
direct question-whether buyer or seller poses it and despite which party they're serving-
concerning these facts.
What prospecting technique does not have to be in the confines of your farm? -
Answers :Canvassing and cold-calling
What is canvassing? - Answers :Soliciting new business via mail, phone calls, or visits.
Licensees should hold open houses in order to:
a) prospect for new clients and customers as well as help their sellers come in contact
with a larger number of potential buyers.
b) simplify the selling process by soliciting both the business of potential buyers of that
property and the owner.
c) save time as this function can be delegated to an assistant.
d) save money as an open requires little advertising effort. - Answers :
The four main benefits of holding an open house include all of the following, except:
buyers are given an extended period of time to look over and ask questions about a
property.
sellers are given access to a larger pool of buyers without holding multiple
appointments.
licensees have a greater chance to be of service to their clients.
sellers are given an extended period of time to look over and ask questions about a
property. - Answers :
