Certified Residential Specialist (CRS)
Practice Exam 1 QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of the Comparative Market Analysis (CMA)?
A) To establish a fixed price for a property
B) To determine the market value of a property based on similar sales
C) To assess the condition of the property
D) To create a marketing plan for the property
Answer: B
Rationale: A CMA helps estimate the current market value of a property by
comparing it to similar properties recently sold in the area.
2. Which of the following is NOT a fiduciary duty owed by an agent to their
client?
,A) Loyalty
B) Disclosure
C) Obedience
D) Financing
Answer: D
Rationale: Financing is not a fiduciary duty; the duties include loyalty,
confidentiality, disclosure, obedience, accounting, and reasonable care.
3. What is the primary benefit of staging a home before listing it?
A) It increases the actual square footage
B) It reduces the sale price
C) It helps buyers visualize the property’s potential
D) It eliminates the need for repairs
Answer: C
Rationale: Staging makes the home more attractive to buyers by helping them see
its potential and envision themselves living there.
4. Which financing option typically requires the smallest down payment?
A) Conventional Loan
B) FHA Loan
C) VA Loan
D) Jumbo Loan
, Answer: C
Rationale: VA loans often require no down payment for qualified veterans and
service members.
5. What is “dual agency”?
A) When two agents from the same brokerage represent the buyer
B) When one agent represents both buyer and seller in the same transaction
C) When two buyers compete for the same property
D) When an agent works in two states simultaneously
Answer: B
Rationale: Dual agency occurs when one agent or brokerage represents both
parties in a transaction.
6. What does the term “earnest money” refer to?
A) The buyer’s down payment
B) The money a buyer deposits to show serious intent to purchase
C) The seller’s closing costs
D) The commission paid to the agent
Answer: B
Rationale: Earnest money is a deposit made by the buyer to demonstrate good
faith in the transaction.
Practice Exam 1 QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the primary purpose of the Comparative Market Analysis (CMA)?
A) To establish a fixed price for a property
B) To determine the market value of a property based on similar sales
C) To assess the condition of the property
D) To create a marketing plan for the property
Answer: B
Rationale: A CMA helps estimate the current market value of a property by
comparing it to similar properties recently sold in the area.
2. Which of the following is NOT a fiduciary duty owed by an agent to their
client?
,A) Loyalty
B) Disclosure
C) Obedience
D) Financing
Answer: D
Rationale: Financing is not a fiduciary duty; the duties include loyalty,
confidentiality, disclosure, obedience, accounting, and reasonable care.
3. What is the primary benefit of staging a home before listing it?
A) It increases the actual square footage
B) It reduces the sale price
C) It helps buyers visualize the property’s potential
D) It eliminates the need for repairs
Answer: C
Rationale: Staging makes the home more attractive to buyers by helping them see
its potential and envision themselves living there.
4. Which financing option typically requires the smallest down payment?
A) Conventional Loan
B) FHA Loan
C) VA Loan
D) Jumbo Loan
, Answer: C
Rationale: VA loans often require no down payment for qualified veterans and
service members.
5. What is “dual agency”?
A) When two agents from the same brokerage represent the buyer
B) When one agent represents both buyer and seller in the same transaction
C) When two buyers compete for the same property
D) When an agent works in two states simultaneously
Answer: B
Rationale: Dual agency occurs when one agent or brokerage represents both
parties in a transaction.
6. What does the term “earnest money” refer to?
A) The buyer’s down payment
B) The money a buyer deposits to show serious intent to purchase
C) The seller’s closing costs
D) The commission paid to the agent
Answer: B
Rationale: Earnest money is a deposit made by the buyer to demonstrate good
faith in the transaction.
