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Chapter 15: Real Estate Quiz
Test your knowledge of the real estate chapter material!
1 / 10
Which of these in on the "Don't forget!" checklist?
The answer can be found on pages 162-163.
That's right! Other items on that list include: your audience, use plain English, renters count, there is no perfect indicator, conventional wisdom can be wrong, and it's a volatile and cyclical business.
2 / 10
An annual percentage rate for a mortgage is the same as the interest rate.
The answer can be found on page 167.
Correct! Although it may be the same as the interest rate, a mortgage APR includes the total cost of acquiring that credit such as any related closing fees.
3 / 10
______ is a legal process where a lender attempts to recover the balance of a mortgage when a borrower has stopped making payments by forcing the sale of the property, often at an auction.
The answer can be found on page 165.
Correct!
4 / 10
A type of mortgage where a borrower owes more than a property is worth.
Correct! These borrowers are thought to be more susceptible to foreclosure. This is also called being “upside down” for being in “negative equity.”
5 / 10
You should never explain trends using indicators that contradict one another.
The answer can be found on page 163.
Correct! Your job is to explain the trends even when indicators are telling different stories. Showing “conflicting signals” is not a crime and will help your readers stay fully informed.
6 / 10
A benefit or discount offered to buyers, sellers, or renters to close a deal – whether that be a home sale or rental lease – is the definition of what?
The answer can be found on page 164.
That's right! Concessions for home sellers can include things such as covering the cost of repairs or new appliances. Renters may be offered concessions such as “1-month free” or waiving fees.
7 / 10
What does FSBO stand for?
Correct! Homes that are “For Sale By Owner” or "fizz-bo," are marketed by the owner with little to no help from a real estate professional.
8 / 10
This is the difference between what a borrower owes on a mortgage and what the home is currently valued at.
That's correct!
9 / 10
Which of these is a trade group in the real estate business that is an excellent source of data and information?
The answer can be found on page 161.
Correct! A few other organizations include the National Association of Realtors, the Associated General Contractors of America, and the Mortgage Bankers Association.
10 / 10
To be pre-approved means a borrower has gotten a lender to commit to lend a fixed loan amount based on a completed and approved loan application without a specific property in mind. This is also called “pre-approved.”
The answer can be found on page 166.
Correct! Although commonly used interchangeably, there are differences between the two terms. Pre-qualified is the first step to becoming pre-approved and merely gives the borrower an idea of what amount they might be pre-approved for. Being pre-approved can speed up the buying process when house shopping and let buyers know what they can reasonably search for based on their financial situation.
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