Buyer I.Q. Test #1(Click here for an archive of past Buyer/Seller IQ TESTS)
1-The most important qualification for your agent to have is that you like them. Yes No 2-Does your agent's office need to be located in the town where you want to live? Yes No 3-Should you work with two or more agents so you will be sure not to miss anything that comes on the market? Yes No 4-Have you contacted a lender who has run a credit report and asked you to complete job and financial verification information? Yes No 5-Do you plan to interview several agents before you decide who will be your agent? Yes No 6-If you find your dream home the first day you are out looking, will you write an offer that day or the next? Yes No 7-Will you buy a home with a poor location if it is priced attractively? Yes No 8-Will you be willing to pay from $300 to $1,000 or more to have the home you buy inspected thoroughly before you purchase it? Yes No 9-If the home appears to be priced according to recent sales, will you make an offer at least 10% under asking price? Yes No 10-Will you tell the sellers you don't need to sell before buying when you really need to sell your home first? Yes No
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ANSWERS(Answers pertain to our local area in California. They represent Judy Dickey's opinions and other sources may differ. Practices may be different in other areas and states. Check with a local Realtor® for answers to questions in your area.)
1-The most important qualification for your agent to have is that you like them. Yes No: (It is very important that you like the agent you will be working with, but even more important, in my opinion, is the depth of that agent's experience, and knowledge of the local market where you will be buying. Remember your agent's job description is to be your (1) Trusted Advisor, (2) Experienced Negotiator and (3) Expert Facilitator. You need an agent who is very qualified to perform all those jobs. Certainly find someone also that you also like or it may not be a very pleasant experience!) 2-Does your agent's office need to be located in the town where you want to live? Yes No (No, it does not need to be in the town but it should be in a community near the place where you want to live. In the Lamorinda area, I would suggest choosing an agent whose office is somewhere in Lamorinda. There are exceptions, of course. Some agents are very knowledgeable of many communities. The main thing is that you need an agent who is very knowledgeable about all aspects of the community where you decide to buy. That includes knowledge about pricing and recent sales. An out-of-the-area agent may not know much more about the local market than you do, if they do not regularly work there.) 3-Should you work with two or more agents so you will be sure not to miss anything that comes on the market? Yes No (Not unless you want to get little attention from each agent. Would you spend much time or effort working for someone who might buy from another agent and you would never get paid for your time? Some agents will agree to do this but I wouldn't recommend taking the chance. You need someone working on your behalf full-time and that agent deserves to get paid for the time they spend by being able to collect a commission on the sale at close of escrow.) 4-Have you contacted a lender who has run a credit report and asked you to complete job and financial verification information? Yes (This is very important so you will have the advantage telling the seller that you are pre-approved for a mortgage. Another buyer who has just started with their financing can't say that and therefore is at a disadvantage. If you were a seller, which buyer would you feel most comfortable selling your home to: one who is pre-approved or one that hasn't even talked with a lender yet or who has only just talked with a lender on the phone?) No 5-Do you plan to interview several agents before you decide who will be your agent? Yes (It's so important to work with a really good agent. Don't just pick the first one you meet unless that agent is very experienced, has a good local track record, knows the areas you want very well and you feel very comfortable with that person. ) No 6-If you find your dream home the first day you are out looking, will you write an offer that day or the next? Yes (I'm not suggesting that you recklessly buy the first house you see. What I am suggesting is that when you see a home that would work perfectly for you, buy it! I've seen too many buyers who see something they like, hesitate days or weeks before they decide to buy it and in the meantime, it is purchased by someone else. Then they spend the next 6 months or more trying to find another home they like as much. Don't let your dream home get away! ) No 7-Will you buy a home with a poor location if it is priced attractively? Yes No (Location, location, location. That's the name of the name of the game in real estate! Don't buy a poor location even if it's cheap. You'll probably have trouble selling when you need to move and the value will not appreciate as much as a home with a good location.) 8-Will you be willing to pay from $300 to $1,000 or more to have the home you buy inspected thoroughly? Yes (You should be prepared to pay whatever it takes to thoroughly inspect the home you want to buy. To pass on inspections just because they are costly is a big mistake. You need to know what you are buying and be aware of any problems that property might have.) No 9-If the home appears to be priced according to recent sales, will you make an offer at least 10% under asking price? Yes No (Are you thinking you'll get a bargain? That's probably wishful thinking. If a home is well-priced, make a reasonable offer for it. Our real estate market is not depressed and sellers aren't usually desperate. All you'll do is insult the sellers and they may decide they don't want to sell to you. Either that, or someone else will come in with a reasonable offer and you won't get the house you really want. On the other hand, if the house is grossly overpriced, a low offer may be effective as long as your agent has comparable sales info that supports the lower price and the offer is presented properly by your agent.) 10-Will you tell the sellers you don't need to sell your home before buying when you really do need to sell your home first? Yes No (There are some buyers who try this trick. It often backfires. The buyers run home to get their home sold and then may find their buyers back out at the last minute. They are in a contact with all contingencies removed and they are stuck. It can be a mess. Before you start looking, contact a lender and find out if you can buy without selling your home. Perhaps you can get an Equity Loan of some sort. If that is not workable, get your home sold first (or at least in escrow ) and negotiate a 60 or 90 day rent back from the buyers after closing. Then you'll have time to go find a home you want.)
Click here for an Archive of Past IQ Tests
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# Correct |
What's Your Buyer IQ? |
| 9-10 |
EXPERT (Congratulations. You know the ropes. Find a great agent and you will be set.) |
| 6-8 |
AVERAGE (Now you know some important areas to consider when buying.) |
| 1-5 | LEARNING (Ask lots of questions of your agent so you'll learn how the process works.) |
