Chapter 1- Getting Started In Real Estate

Question 1

Real estate is not homogeneous it is…

Answer 1

Stratified- the market place behaves differently based on price range.

Question 2

Will sell versus must sell owners

Answer 2

Will sell are unmotivated sellers (above market prices) . Must sell- motivated, maybe desperate.

Question 3

Sellers market

Answer 3

Low inventory, high demand

Question 4

Buyers market

Answer 4

Lots of inventory and low demand

Question 5

Broker/salespersons are generally…

Answer 5

Independent contractors. Salespersons are legally an employee but paid as independent contractors.

Question 6

What is the independent contractor agreement

Answer 6

Written requirement with broker required by law. Includes compensation, terms, and expenses.

Question 7

Brokers must carry what type of insurance for salespeople?

Answer 7

Workers compensation insurance

Question 8

How do agents divide their time in A, B, C and D categories?

Answer 8

Focus on A time- time spent listing presentations and showing properties for sale. This is time spent that can lead directly to a commission.
B- time spent in prospecting for buyers and sellers in preparing showings.
C- caravanning, studying inventory, and doing necessary tasks and paperwork in support of A and B time,
D- time spent for personal and non work related activities.