Humber/Ontario Real Estate Course 4 Exam Practice

Buyer Sullivan wants to purchase quickly due to rising prices and limited properties in his desired area. What advice should be given?

1. Advise Sullivan to submit an offer with no conditions, despite having only the minimum downpayment needed for financing.

2. Suggest Sullivan submit an offer with a large deposit, minimal conditions, and align the closing date with the seller's desired completion date.

3. Tell Sullivan that, due to his high buying motivation, he has the best negotiating position with rising prices.

4. Encourage Sullivan to submit an initial offer that leaves room for negotiation.

The correct answer is: Suggest Sullivan submit an offer with a large deposit, minimal conditions, and align the closing date with the seller's desired completion date.

The best approach for Sullivan, considering the urgency in purchasing due to rising prices and limited availability of properties, is to suggest he submits an offer with a large deposit, minimal conditions, and aligns the closing date with the seller's preferred timeline. This strategy increases the attractiveness of the offer to the seller, indicating a serious commitment to the purchase. A larger deposit demonstrates financial confidence and stability, which can make the offer stand out in a competitive market. Minimal conditions signal to the seller that Sullivan is ready to proceed without lengthy negotiations or delays, which can be appealing to those looking to finalize a sale quickly. Additionally, aligning the closing date with the seller's needs shows consideration for their circumstances, which can foster goodwill and strengthen Sullivan’s negotiating position. In competitive markets, these factors can often sway the seller's decision in favor of the buyer's offer over others.