Introduction to the Real Estate Business & Brokerage Flashcards
Licensees should have expert knowledge in the follow areas: _______, _______, and ________ ________.
valuation
marketing
property transfer
Real estate associates or agents sale…
knowledge and expertise
The businesses of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.
Real estate brokerage
When a sales associate narrows their focus and gains a niche or master in their knowledge.
Specialization
What is the role of the real estate industry in the economy as a whole?
Besides the sales associates and brokers, the real estate business provides jobs to many third parties, such as appraisers, attorneys, bankers, title insurance agents, architects, surveyors, accountants, property managers, etc.
Explain brokerage.
The physical building and business that serves real estate transactions. The business of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.
What are the five most common specializations in real estate?
- Client type
- Property type
- Type of transaction
- Geographical area
- Type of relationship
Explain the specialization client type.
Working exclusively with buyers or sellers.
Provide examples of the specialization property type.
Residential, commercial, agricultural, etc.
What are some different types of specialized types of transactions?
Sales agent, leasing agent, short sales (buyer or seller), REO specialist (deal with foreclosures), property management, etc.
Give an example of “geographical area” specialization.
Neighborhood specialist
Explain the “type of relationship” specialization.
A fee-based consultant; a commission-based agent; a full-time salaried employee, etc.
Explain the multiple specializations in the statement.
A residential seller’s agent specializing in short sales.
Specialized property type; specialized client type; specialized type of transaction.
A real estate agent works exclusively with buyers. They have chosen a specialization that focuses on the:
a) client type
b) property type
c) geographical area
d) commission split
client type
This specialty sells primary residences to homeowners.
Residential homeowner
Explain the term “property type” in real estate specializations.
Specializing in residential, commercial, industrial, agricultural, or business.
This specialty sells residential property to investors.
Residential investment
This specialty sells commercial property to investors, including offices, industrial space, PUDs, and retail.
Commercial sales
This specialty leases commercial property to tenants, including office, industrial space, PUDs, and retail.
Commercial leasing
This specialty leases and manages residential investment property on behalf of the owner (for a fee).
Property manager
This specialty sells farm land and other agricultural properties.
Agricultural
This specialty sells unimproved land to investors or subdividers.
Unimproved land
This specialty leases residential properties for landlords or helps residential tenants find homes to rent.
Residential Leasing/ Apartment Broker
This specialty sells distressed properties in short sales or helps put distressed properties in short sales or at foreclosure auctions.
Foreclosure/Short Sale/REO Specialist
Alice is a business owner who wants to expand her golf retail store to another location in Palm Springs. Alice spent time researching the salesperson market in Palm Springs:
Laura:
-Has a breadth of experience
-Has the ability to help out with every type of real estate transaction
-Is one of Palm Springs’s premiere real estate agents
Angie:
-Is Palm Springs’s premier retail agent
-Was used by business owners to open up a second market
-Focuses on commercial real estate
Which salesperson would you pick to represent you and why?
Angie would be the ideal salesperson in this situation. While it’s not clear who has more years of experience, Angie’s specialization in retail and commercial real estate makes her particularly qualified.
Explain a seller’s market.
When a seller’s market favors the seller.
What is the challenge in a seller’s market?
When you are in a seller’s market, the challenge is to make sure your buyer can get an offer accepted on a home without having to pay too much above the listing price. In a hot seller’s market, your buyer is not likely to get any closing costs paid by the seller, and they probably won’t get a home for less than the list price.
Explain a buyer’s market.
A ton of houses for sale and few buyers. A buyer’s market favors the buyer. Sales prices are usually more negotiable for buyers in a buyer’s market because the real estate supply is high. In a hot buyer’s market, the buyer can expect to get a “better deal” on a piece of real estate.
The name of a person who runs a brokerage. The term can also refer to the actions taken to fulfill a real estate transaction.
broker
The physical building where brokers and their sales associates often work.
brokerage
What duties are brokerages responsible for carrying out?
-Sales and leasing
-Counseling clients and customers
-Property management
-Value and financing
-Development and construction
It is the agent’s responsibility to fulfill what duties?
-Fulfill the Agent-Client contract
-Seek out the other party
-Provide appropriate advice
-Confidentiality
-Compliance (duties within the law)
When fulfilling the Agent-Client Contract, all contracts should:
- Be in writing.
- If it’s in the contract, it has to get done.
When all duties and responsibilities are carried out lawfully.
Compliance
