Unit 1
Formerly the broker was required to review contracts prepared by salespersons within five days. This has been replaced by a policy of XXX
"reasonable supervision."
3: Which of the following industries benefit from a strong real estate market?
(a)Architecture and design (b)Lumber (c)Pest control
5: The real estate profession has been undergoing significant change in recent years. This change includes:
(a)Better-trained and technology-oriented salespeople. (b)Greater use of the Internet by homebuyers as well as for marketing. (c)Greater use of email and fax messages to transmit information and contracts
15: Building a special relationship with a successful agent in the office can benefit a new licensee in which of the following ways?
(a)Developing his/her own mentor. (b)Learning from someone who possesses knowledge and experience. (c)Crucial support in an office where the broker or office manager has limited time to work with new hires.
18: Goals in real estate selling should be specific rather than abstract. Which of the following stated goals is considered specific?
(c)I will make at least three listing presentations this week.
12: Which of the following is TRUE with regard to 100 percent commission offices and newly hired salespeople?
(c)This type of arrangement is not good for new hires because it typically means fewer services are provided by the broker to the agent.
16: It is essential to be able to take your ideas and effectively verbalize them to prospective buyers and sellers. New licensees can practice this skill by:
By the use of role-playing, you can train yourself to handle telephone inquiries; make listing, showing, and selling presentations; learn to effectively qualify buyers; and learn to overcome both buyer and seller objections.
Real estate (namely, the XXX and that which transfers with it)
Land
Therefore, internet control of the team name would be hard for the broker to enforce. Assembly Bill 2018 (Bocanegra) allows a salesperson to
"maintain ownership of a fictitious business name" but still requires that this name be used "subject to the control of a responsible broker."
Broker's Compensation
Although there are a number of flat fee brokerage firms, generally, a broker's fee or commission is a percentage of the sales price.
Broker associates
Brokers can elect to work as salespeople for another broker. They are considered broker associates. They can work for themselves or for more than one broker.
A problem with working for a lesser commission is that the listing broker might rely more on other brokers and reduce marketing efforts and expenses.
Discount brokers
Ad Week (April 20, 2018) indicated that 69% of real estate agents use
Facebook.
4: In a buyer's market,
In a buyer's market, there are many sellers and few buyers, so sellers must compete for the available buyers, which usually means the lowering of prices.
Real estate is not
homogeneous.
The real estate broker is almost always an
independent contractor. For example, the real estate broker is responsible for results to his or her principal (employer), who could be a buyer, seller, lessor, or lessee.
Growth of offices offering XXX commission for the remainder of the year after salesperson reaches a sales goal
100%
Some agents like to divide their activities into A, B, C, and D categories: "A" Time—Time spent making listing presentations and showing properties for sale. This is time spent that can lead directly to a commission. "B" Time—Time spent in prospecting for buyers and sellers and in preparing for showings "C" Time—Caravanning, studying inventory, and doing necessary tasks and paperwork in support of A Time and B Time activities "D" Time—Time spent for personal and non-work-related activities
Simply increasing "A" Time will increase productivity.
21: To demonstrate their proficiency with computers, many licensees obtain the:
You should consider e-Pro certification. This is the NAR training program to certify real estate professionals as internet professionals. Certification will prepare you for more effective online communications.
23: Successful real estate agents typically dress in a professional manner. A good rule-of-thumb for clothes is:
You want to dress as a professional within your area would dress. Your clothes reflect the image you want to convey, that of a person who feels competent in his or her role. Avoid trendy fashions; conservative is best.
Will-buy buyers
are buyers who don't really have to buy. Investors and speculators are included in this group. Will-buy buyers generally look for motivated must-sell sellers; in other words, they're often bargain
"team name"
as a professional identity or brand name used by a salesperson, and one or more other real estate licensees, for the provision of real estate licensed services. AB 2018 specifies that
The growth of buyer XXX, where a sole agent represents a buyer, has reduced the likelihood of a buyer overpaying.
brokerage
Salespeople are paid solely by
commission, minimum wage laws do not protect them.
Cooperation
is the cornerstone of modern real estate brokerage. Cooperation includes sharing of commission.
Sellers who are motivated to sell will be more realistic in their pricing. When a seller is highly motivated or desperate, a XXX, the price asked could be less than the sale prices of similarly desirable properties.
must-sell seller
Some new licensees will work as salaried XXX to successful sales agents to gain the experience and confidence necessary for success in sales.
personal assistants
A broker must notify the XXX in writing when a broker enters employment as a salesperson or is terminated.
real estate commissioner
marketing and solicitation materials, including business cards, print or electronic media and "for sale" signage, using a fictitious business name obtained in accordance with subdivision
shall include the responsible broker's identity in a manner equally as prominent as the fictitious business name.
The Association of Energy and Environment Real Estate Professionals offers
the Eco Broker designations for agents dedicated to reducing our carbon footprints and protecting the environment. Dealing with an Eco Broker is becoming an important consideration to many buyers. A designation frequently sought is the Graduate, REALTOR® Institute (GRI). Achieving designations such as the GRI will increase your confidence as well as your sense of self-worth.
While a real estate salesperson is treated as an independent contractor for purposes of state and federal income tax reporting and certain other purposes such as worker's compensation insurance coverage,
they are treated as employees in connection with dealing with the public.
Errors and omissions insurance
typically would not cover pollution on the property, physical harm to others, or damage to property caused by the insured. Policies typically have deductibles, and the cost of the policy is related to business volume.
List prices are not sale prices and many listings expire XXX. Location also plays a significant role in determining value.
unsold
The Seniors Real Estate Specialist® designation (SRES)
will provide the expertise to meet real estate needs of seniors and help you reach this market.
Unmotivated sellers-that is
will-sell sellers
The broker is responsible for XXX of his or her salespeople within the course and scope of employment.
wrongful acts (torts)
Some successful agents hire assistants to take care of a great deal of their "B" Time and "C" Time activities. You can see why a productive salesperson would want to do this.
"B" Time—Time spent in prospecting for buyers and sellers and in preparing for showings "C" Time—Caravanning, studying inventory, and doing necessary tasks and paperwork in support of A Time and B Time activities
13: Which of the following is considered a positive and successful attitude?
(a)Instinctively wanting to expend extra effort to learn, to plan, and to practice for success. (b)Being interested in people and truly wanting to help them in meeting their needs. (c)Willingness to learn from successful co-workers.
10: Real estate salespeople often team up with another salesperson to form a selling team. An advantage of such an arrangement is:
(a)Partners receive more steady income flow because there is a greater likelihood of income being earned every month. (b)The needs of clients are better served because of the greater availability of team members. (c)Team members are motivated because they share in each other's successes.
20: When you go to work for an office, one of your first tasks is to learn about the office inventory as soon as possible. This process can be accomplished more efficiently by:
(a)utilize the office Web site.
14: Which of the following statements is FALSE about professional designations?
(b)Professional designations mean nothing to prospective buyers and sellers. Certain professional designations carry substantial weight out in the field. They convey knowledge and expertise to prospective buyers and sellers.
2: What is the dominant emphasis of the real estate profession?
Although we deal with a product-real estate, the human factor of identifying and fulfilling the needs of others is the dominant emphasis of the real estate profession.
6: Discount brokerage firms tend to be more successful in:
In a seller's market, with few sellers and many buyers, discount brokerage firms tend to be more successful since less marketing is necessary for find buyers.
Prices asked for similar properties vary, and the selling price is often XXX than the asking price.
Less
8: Real estate licensees may also act as agents in:
Many agents may specialize by type of property. For example, some agents handle only mini-malls, while others may specialize in office buildings, retail stores, or warehouses.
17: ________ is the process of plotting your course of action to reach specified goals and objectives.
Planning is the process of plotting your course of action to reach specified goals and objectives. It is a blueprint of what you intend to accomplish.
Imperfect marketplace
Real estate professionals work in an imperfect and changing marketplace. The reasons for this imperfection include product differentiation, emotions, imperfect buyer and seller knowledge, buyer and seller motivation, and the differing terms of the sale. The real estate professional brings a degree of order to this marketplace.
Listings aka agency agreements
Real estate salespeople find owners willing to sell their properties or buyers desiring to buy property and secure agency agreements (listings).
Partnership/Selling Team
The teams are usually organized under written agreements, sometimes for a specified time period that provides for renewal by agreement. Team agreements cover adding or termination of team membership.
Terms—Because of the dollar value of the purchase, real estate sales tend to be very sensitive to XXX. Higher interest rates can depress the marketplace, because fewer buyers will qualify for loans
interest rates
Do not forget the oft-repeated statement that 20 percent of your effort will produce
80 percent of your results.
XXX allows brokers to hire classified salespersons as employees or independent contractors. Most contracts specify an independent contractor choice as it relieves the broker of unemployment compensation as well as withholding requirements.
Business and Professions Code Section 10032
7: A unique system of cooperation among brokers that allows one broker to show and sell a listing of any other member broker is called:
Brokers who are members of an MLS make their sale listings available for other agents to sell. Therefore, any member of an MLS can show and sell a listing of any other member.
9: Although the working relationship of the salesperson is that of an independent contractor, salespersons are actually:
Every real estate broker is required to have a written contract with his or her salespeople. Most contracts identify the working relationship of the salesperson as that of an independent contractor. Despite these agreements, salespersons are actually employees of the broker and not independent contractors.
19: Time spent making listing presentations and showing properties is considered:
Time spent making listing presentations and showing properties is very productive and considered A time.
11: A training program in which the new hire assists a successful salesperson for several months is called a:
Some offices use a mentor program to train new agents where the new hire assists a successful salesperson for several months.
Brokers and salespersons contract as independent contractors as a result of the requirement of the Internal Revenue Service. (See Figure 1.2.) The IRS will treat the real estate salesperson as an independent contractor if the following three criteria are met:
The salesperson is licensed as a real estate agent. Reimbursement to the salesperson is based solely on sales, not on hours worked. There is a written contract that states that the salesperson shall be treated as an independent contractor for tax purposes.
The real estate industry, which includes both the production as well as the XXX of real estate, is truly the engine of both the California and U.S. economies.
distribution
For the buyer as well as the seller, home purchases are important in both XXX and dollars.
emotion
Must-buy buyers
generally look for properties that meet their specific needs. While even must-buy buyers like bargains, they are more likely to pay a reasonable price. Successful real estate professionals concentrate their time on probabilities rather than possibilities, which means giving priority to motivated owners and motivated buyers.
Goal setting
is a tool for making intelligent decisions. Use the following seven principles to help you set your goals effectively:
