M&M Final Exam Questions And Verified Accurate Answers 100% Correct.

What is the Value of Representation? - correct answer Highest Price, best terms, most qualified buyers, shortest amount of time. How is the VOR achieved? - correct answer via: specialization, platform, exclusive listings. If the VOR has been achieved, what has been demonstrated? - correct answer M&M is the right firm, I'm the right agent, exclusive listing is the right listing. Expectations the sixteen (16) weeks after you become an agent? - correct answer Make pacesetter, hit pacesetter metrics What are those metrics? - correct answer 50 calls/day, 250 calls/week, 10 proposals total, 2 listings. What is the success rate of those who achieved this? - correct answer 91% Why do we emphasize the "art" of the business more than the "science"? - correct answer The business requires you to be instinctive and use these instincts to uncover client motivations, go after quality deals, and build relationships with clients. More important to be able to influence people, than to be a know it all. What are the "stops" along the brokerage continuum? - correct answer 1. Research 2. Business development call 3. 1st Appointment 4. Underwriting 5. 2nd Appointment 6. Exclusive Listing 7. Marketing 8. Field offers 9. Contract 10. Due-diligence 11. Removal of contingencies 12. Close 13. Post-closing What areas of the BC do you need to be most proficient your first year? - correct answer Research; 2nd Appointment Steps of the business development call? - correct answer 1. Intro/credibility statement 2. Interest Generator 3. Open-ended questions 4. Listen for window of opportunity 5. Close Goal of the call? - correct answer Get a 1st appointment Steps of the 1st appointment? - correct answer 1. Intro/build rapport 2. Ask probing questions 3. Determine if the proposal is warranted 4. Sell proposal as a solution 5. Books and records 6. Conditional agreement 7. Close for 2nd appointment Goal of the 1st appointment? - correct answer Get a proposal What Books and Records are requested? - correct answer 1. Rent Roll 2. Three year profit/loss 3. Prom Note 4. Capital Expenditures Why do we need multiple years? - correct answer Allows us to accurately underwrite income and expenses. Allows us to see how the subject property performed under different market conditions. What is the purpose of rent comps? - correct answer Determine what the current market rents are for the subject property. Determine if more cash flow can be earned. What is the purpose of a "good-bad" Sales Comp? - correct answer Manage expectations. Shows the "high strike" and "low strike" price. Why do we adjust for Repairs, Reserves, and Management vs. actuals? - correct answer Normalize expenses because they can vary. What is a Seller-favorable NOI? - correct answer A NOI that "pushes value" for our seller. Results in credible, aggressive valuation. What is the correlation between cap rates and interest rates? - correct answer Cap rates and interest rates rise and fall together. What is the correlation between cap rates and value? - correct answer Cap rates and value rise and fall opposite of one another. What does 'Proforma" mean? - correct answer The opportunity. What could be achieved. Projected. Please write out your Conditional Commitment? - correct answer Mr. Seller, if we can agree on price and terms at our next meeting, will anything else hold you back from exclusive listing with M&M? Why is delivering this important? - correct answer It establishes any possible objections and concerns. What are the 4 options an owner has? - correct answer Sell and exchange, sell and cash out, hold and improve, hold and refinance. What are the 4 primary reasons an owner sells? - correct answer Problem, price, change, opportunity. What are the 2 reasons they object to an exclusive listing? - correct answer 1. Proceeds 2. Control Steps of the 2nd appointment? - correct answer 1. Intro/rapport building 2. Restate what happened at the last meeting, "Has anything changed?" 3. Go over agenda 4. Pitch M&M advantage 5. Pitch specialization 6. Marketing Plan 7. Rent/Sales Comps 8. Underwriting/Price 9. Shut Up 10. Overcome Objections 11. Close/Get Ink Goal of the 2nd Appointment? - correct answer Sign an Exclusive Listing Steps to overcome an objection? - correct answer Clarify, Verify, Provide Information, Close How is M&M different from our competition? - correct answer We collaborate, specialize, share information. Transact more than competition. What "Five plus two" Drivers are critical to amassing submarket knowledge? - correct answer Sales comps, Rent Comps, Debts, Employment, Construction, Deal Stories. What are the differences between Exclusing Listing and Open Listing? - correct answer EL: The agent gets paid if they provide a ready, willing, and able buyer. OL: No guarantee of getting paid. What is the difference between a Purchase Agreement and Letter of Intent? - correct answer PSA: binding LOI: Not binding Why do we ask open-ended questions? - correct answer To get the client talking. They can't say "yes" or "no" List 5 features and their benefits of using M&M when marketing real estate? - correct answer 1. Mnet: broad exposure, more inclined buyers, higher price 2. Monday morning sales meetings: Increased exposure, more qualified buyers 3. Pass through deposits: Shows buyer is committed, assurity of close 4. MMCC: better terms, more qualified buyers, higher price 5. Active vs. Passive brokerage: more offers, better terms, higher price. What points in a Purchase Agreement create momentum in a transaction? - correct answer Earnest money deposit, Earnest money increase, Contingency removal, Earnest money transfer What is the role of the broker once a deal goes under contract? - correct answer Manage buyer and seller expectations What is iMpact? - correct answer Creates uniform marketing package, proposal books, and other marketing material What is the role of the RM to a new agent? Experienced agent? - correct answer New agent: Coach them, give them tools to be successful, help them w/ deals, etc. Experienced agent: Help them win business, plan to win business, increased success year after year When do legal documents, not limited to contracts, need to be submitted to the managing broker? - correct answer 48 hours What is Pre-marketing? - correct answer Advertising a listing before the listing is active. (Calling the client) What is the firm's policy on Pre-marketing? - correct answer Not paid What is the gross commission threshold for NAA? - correct answer 750k What is the difference between "possibility brokerage" and "probability brokerage"? - correct answer Possibility brokerage: Chases low probability deals, working with the buy side, working with non-motivated sellers Probability brokerage: Chases high probable deals that are most likely to close 3 Questions qualify a buyer? - correct answer 1. Why do you want to buy this? 2. What is your exit strategy? 3. Have you been pre-qualified or approved?