Humber/Ontario Real Estate Course 3 Exam Practice

Buyer Martin is eager to purchase a property in a tight market with rising prices. What is the best advice to give Martin when considering submitting an offer?

1. Advise Martin to submit an offer with a minimal deposit and align the closing date with his convenience.

2. Suggest Martin consider submitting an offer with a large deposit, minimal conditions, and align the closing date with the seller's desired time for completion.

3. Assist Martin by telling him to submit an offer that allows room for negotiation.

4. Tell Martin that, as the most motivated buyer, he is in the best negotiating position.

5. Advise Martin to offer the listed price regardless of market conditions.

6. Instruct Martin to include multiple conditions to ensure his offer is strong.

The correct answer is: Suggest Martin consider submitting an offer with a large deposit, minimal conditions, and align the closing date with the seller's desired time for completion.

The best advice for Martin in a tight market with rising prices is to consider submitting an offer with a large deposit, minimal conditions, and align the closing date with the seller's desired time for completion. This strategy demonstrates serious intent and financial capability to the seller, which can be particularly persuasive in competitive situations. A large deposit serves as a sign of good faith, indicating Martin is financially committed and reducing the seller's perception of risk. In a market with tight inventory, minimizing conditions can make the offer more appealing since sellers often prefer offers that are easier to accept without many contingencies that could delay the process or potentially derail the sale. Furthermore, aligning the closing date with the seller's preferences shows flexibility and willingness to facilitate a smoother transaction, which can further entice the seller to choose Martin's offer over others. This approach balances the need for a strong offer in a competitive landscape while respecting the seller's interests, increasing the likelihood of a successful outcome.