Introduction to the Real Estate Business & Brokerage

Question 1

Licensees should have expert knowledge in the follow areas: _______, _______, and ________ ________.

Answer 1

valuation
marketing
property transfer

Question 2

Real estate associates or agents sale…

Answer 2

knowledge and expertise

Question 3

The businesses of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.

Answer 3

Real estate brokerage

Question 4

When a sales associate narrows their focus and gains a niche or master in their knowledge.

Answer 4

Specialization

Question 5

What is the role of the real estate industry in the economy as a whole?

Answer 5

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.

Question 6

Explain brokerage.

Answer 6

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.

Question 7

What are the five most common specializations in real estate?

Answer 7

1. Client type
2. Property type
3. Type of transaction
4. Geographical area
5. Type of relationship

Question 8

Explain the specialization client type.

Answer 8

Working exclusively with buyers or sellers.

Question 9

Provide examples of the specialization property type.

Answer 9

Residential, commercial, agricultural, etc.

Question 10

What are some different types of specialized types of transactions?

Answer 10

Sales agent, leasing agent, short sales (buyer or seller), REO specialist (deal with foreclosures), property management, etc.

Question 11

Give an example of “geographical area” specialization.

Answer 11

Neighborhood specialist

Question 12

Explain the “type of relationship” specialization.

Answer 12

A fee-based consultant; a commission-based agent; a full-time salaried employee, etc.

Question 13

Explain the multiple specializations in the statement.

A residential seller’s agent specializing in short sales.

Answer 13

Specialized property type; specialized client type; specialized type of transaction.

Question 14

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

Answer 14

client type

Question 15

This specialty sells primary residences to homeowners.

Answer 15

Residential homeowner

Question 16

Explain the term “property type” in real estate specializations.

Answer 16

Specializing in residential, commercial, industrial, agricultural, or business.

Question 17

This specialty sells residential property to investors.

Answer 17

Residential investment

Question 18

This specialty sells commercial property to investors, including offices, industrial space, PUDs, and retail.

Answer 18

Commercial sales

Question 19

This specialty leases commercial property to tenants, including office, industrial space, PUDs, and retail.

Answer 19

Commercial leasing

Question 20

This specialty leases and manages residential investment property on behalf of the owner (for a fee).

Answer 20

Property manager

Question 21

This specialty sells farm land and other agricultural properties.

Answer 21

Agricultural

Question 22

This specialty sells unimproved land to investors or subdividers.

Answer 22

Unimproved land

Question 23

This specialty leases residential properties for landlords or helps residential tenants find homes to rent.

Answer 23

Residential Leasing/ Apartment Broker

Question 24

This specialty sells distressed properties in short sales or helps put distressed properties in short sales or at foreclosure auctions.

Answer 24

Foreclosure/Short Sale/REO Specialist

Question 25

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?

Answer 25

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.

Question 26

Explain a seller's market.

Answer 26

When a seller's market favors the seller.

Question 27

What is the challenge in a seller's market?

Answer 27

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.

Question 28

Explain a buyer's market.

Answer 28

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.

Question 29

The name of a person who runs a brokerage. The term can also refer to the actions taken to fulfill a real estate transaction.

Answer 29

broker

Question 30

The physical building where brokers and their sales associates often work.

Answer 30

brokerage

Question 31

What duties are brokerages responsible for carrying out?

Answer 31

-Sales and leasing -Counseling clients and customers -Property management -Value and financing -Development and construction

Question 32

It is the agent's responsibility to fulfill what duties?

Answer 32

-Fulfill the Agent-Client contract -Seek out the other party -Provide appropriate advice -Confidentiality -Compliance (duties within the law)

Question 33

When fulfilling the Agent-Client Contract, all contracts should:

Answer 33

1. Be in writing. 2. If it's in the contract, it has to get done.

Question 34

When all duties and responsibilities are carried out lawfully.

Answer 34

Compliance