Humber/Ontario Real Estate Course 3 Exam Practice

If a prospective buyer has financial constraints, what should a salesperson do?

1. Ensure the buyer explores pre-qualification from lenders for better clarity.

2. Advise the buyer to make a lower offer to compensate for financial constraints.

3. Suggest that financing conditions be waived to make the offer more attractive.

4. Negotiate down payments directly with the seller for the buyer’s benefit.

5. Ignore financial constraints and proceed with a higher mortgage amount.

6. Simplify the process by reducing the property requirements.

The correct answer is: Ensure the buyer explores pre-qualification from lenders for better clarity.

The correct response emphasizes the importance of understanding the buyer's financial situation by encouraging them to explore pre-qualification from lenders. This step is crucial because pre-qualification provides the buyer with a clearer picture of what they can afford, helping to set realistic expectations. It also allows the salesperson to identify suitable properties within the buyer's budget and prevent potential disappointment down the line. By having a comprehensive understanding of their financing options, the buyer can make informed decisions and develop a better strategy moving forward. This proactive approach reflects well on the salesperson, as they demonstrate a commitment to guiding the buyer through the purchasing process wisely and responsibly. The focus on pre-qualification is superior to the other options, as those may either undermine the buyer's position, place them in a risky financial situation, or lead to unnecessary complications.