Humber/Ontario Real Estate Course 3 Exam Practice

Which advice should an agent give a client in a rising market with few listed properties?

1. Consider submitting an offer with modest downpayment and flexible closing date.

2. Submit an offer with a large deposit, few conditions, and the seller's desired closing date.

3. Submit an offer with no room for negotiation.

4. Include numerous conditions to safeguard the offer.

5. Make a lower offer to start negotiations.

6. Wait for prices to stabilize before submitting an offer.

The correct answer is: Submit an offer with a large deposit, few conditions, and the seller's desired closing date.

In a rising market with few listed properties, the best advice for an agent to give a client is to submit an offer with a large deposit, few conditions, and the seller's desired closing date. This strategy is effective because it strengthens the client's position in a competitive market. A large deposit demonstrates serious intent and financial capability, which can make the offer more attractive to sellers amidst competing bids. Minimizing conditions shows flexibility and reduces uncertainty for the seller, making the offer more appealing. Moreover, aligning with the seller's desired closing date can facilitate a smoother transaction, as it caters to the seller's timeline. Other responses, such as including numerous conditions or making a lower offer, would generally be less effective in this scenario because they could cause the offer to appear weaker or less desirable amidst limited inventory. Waiting for prices to stabilize can also be counterproductive, as rising markets often mean that prices may continue to increase, potentially costing the buyer more in the long run.