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Brokerage Exam 1 > Lean Management Principles > Flashcards

Lean Management Principles Flashcards

1
Q

Real Estate Brokerage Exam

A

Everything about the Real Estate business

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2
Q

Defects (Lean Management)

A

errors or redos

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3
Q

Describe Lean Management.

A

consistently evaluating and improving efficiency to maximize what it is that customers value about our business, always with an eye out for cost reduction.

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4
Q

overproduction (Lean Management)

A

doing more than needed

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5
Q

waiting (Lean Management)

A

delays in the process

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6
Q

Non or underutilized people (Lean Management)

A

someone who can do more than they are being given (EX. Shanon)

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7
Q

Transportation (Lean Management)

A

moving one thing from one place to another

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8
Q

How can Inventory hurt a company using Lean Management?

A

inventory waste occurs when individuals or departments allow inventory to pile up unattended. (EX. emails and voicemails)

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9
Q

Motion (Lean Management)

A

an action that is not necessary

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10
Q

In lean management, what is Extra or over-processing?

A

overly complicated systems and processes.

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11
Q

Maximizing Income

A

Increase sales revenue and business expansion

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12
Q

inorganic growth

A

adding new businesses from the OUTSIDE to produce company growth (Merger, acquisition)

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13
Q

Organic growth

A

growth from within (promoting from within, horizontal expansion - adding branches of an office (venture capital), vertical expansion - different departments or niches

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14
Q

What are two Marketing Strategies/ Farming?

A

Geographic Farming, and demographic farming

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15
Q

Geographic Farming

A

neighborhood marketing

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16
Q

What is Demographic Farming?

A

price range marketing $$$

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17
Q

Termination

A

Sponsoring Broker is under no obligation to retain an agent

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18
Q

How do brokers terminate or sponsor an agent?

A

(RMT) Relationship Management Tool- sponsorship and termination via TREC - you have to be registered on the RMT to use it

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19
Q

Retaining

A

mentoring, training and coaching

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20
Q

Independent Contractor Rules

A

-Commissions with no advances
-Policies and procedures manual provided but not mandatory for agent to follow
-agent pays own business expenses
-agent does not have to attend meetings
-agent does not have attend trainings
-agent does not have set hours or specific hours
-agents cannot be offered insurance through broker or retirement through broker

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21
Q

Tax Equity and Fiscal Responsibility Act TEFRA Independent Contractor

A
  1. Agent must hold real estate license
  2. Agent must be paid on commission basis
  3. Agent must have written contract with the broker specifying the sales agent is NOT an employee
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22
Q

Management Structure

A

Divisional, Functional, Matrix

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23
Q

Divisional Structure

A

Larger companies in broad geographical areas

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24
Q

Functional Structure

A

Grouping with departments (ex. sales department)

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25
Q

Matrix Structure

A

hybrid of divisional and functional structure

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26
Q

Management styles
Caretaker (Yellow/Green)

A

realistic perspective on life creates a comfortable environment, diplomatic

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27
Q

Management Styles
Technical Thinker (Yellow/Orange)

A

inventive, encourage others to be creative with their thought processes

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28
Q

Management Styles
Catalyst (Yellow/Purple)

A

active listener who expresses feelings about situations

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29
Q

Management Styles
Anchor (Blue/Green)

A

Supportive of your client, time for their questions and demands, help them see their dreams and are sensitive to their needs

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30
Q

Advertisements

A

AIDA
Attention
Interest
Desire
Action

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31
Q

Advertisements (board or sign)

A

-name of license holder or team
-broker’s name in at least 1/2 the size of the largest contact info.for any sales agent
-contact information name, phone #, email, website, social media handle, scan code

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32
Q

Marketing Opportunity

A

-Personal database
-Business Associates
-New Additions to Database
-Current Clients
-Past Clients

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33
Q

Market Budgeting
No-Cost

A

misleading- some set-up fees

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34
Q

Market Budgeting
Minimal Cost

A

reinvest closing $$$ into ongoing marketing

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35
Q

Market Budgeting
Client-Based

A

Repeat clients and referrals

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36
Q

Multi-channel Marketing

A

Email
Direct mail
Personal call
Email, then direct mail, follow up with a personal contact

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37
Q

Direct Marketing

A

Yard signs
classified ads
mailers
Radio
TV
Print media

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38
Q

Market Opportunities

A

First-Time buyers
moving up
second home
gated community
planned community
minority
luxury
condo

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39
Q

Hoteling

A

a reservation-based concept

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40
Q

Office Balance

A

Visual weight compliments other areas

41
Q

Office Harmony

A

repetition in color, texture, or shape

42
Q

Office Emphasis

A

Every room needs a focal point

43
Q

Office Functionality

A

Everything in a given space should be appropriate to and support the experience of the space

44
Q

Security Deposit

A

60 days after forwarding address with itemized list of damages

45
Q

Security Deposit Violation Bad Faith

A

liable for an amount = to the sum of $100, three times the portion of the deposit wrongfully withheld and reasonable attorney fees incurred

46
Q

Right of First Refusal

A

a tenant has the right to match or better any offer the landlord may receive on the property before it is sold to someone else

47
Q

Sale and leaseback

A

helps former owner to sell property and then lease it back getting needed capital to expand business.

48
Q

Percentage Lease

A

a percentage lease is base rent and a percentage of the gross sales

49
Q

Single Net Lease

A

rent and property tax

50
Q

Double Net Lease

A

Rent, property tax and property insurance

51
Q

Triple Net Lease

A

Rent and all fixed and variable expenses related to the property (tax, insurance and maintenance)

52
Q

Percentage Lease

A

a % of gross sales plus a base rent with a breakingpoint on the %

53
Q

Valid Lease

A

Competent, let and take agreement, consideration ($), Legal purpose, description of property (address)

54
Q

Tenancy for years/Estate for Years (Leasehold Estate)

A

Specific starting and ending date

55
Q

Periodic Tenancy/Periodic Estate (Leasehold Estate)

A

automatically renews itself for periods, needs 30 day notice to terminate

56
Q

Estate at Will (Leasehold Estate)

A

Very loose agreement, landlord or tenant may agree to terminate “AT WILL”, terminated at death of landlord

57
Q

Tenancy at Sufferance (Leasehold Estate)

A

when lease expires and the tenant refuses to leave or pay rent- Eviction with Forcible Entry or Detainer Statutes (If landlord accepts rent from this person after lease expires it becomes a periodic estate.)

58
Q

Business Expenses/Operating Expenses

A

Transaction Expense
Salaries (employees and brokers)
Rent/mortgage
Advertising/marketing
Service fees
Supplies and equipment
Taxes
Licenses
Dues
Publications
Banking costs
Repairs and equipment replacement
Miscellaneous

59
Q

Gross Income

A

commissions, referral fees and other fees

60
Q

Net Income

A

after expenses are deducted

61
Q

FACTA

A

Fair and Accurate Credit Transactions Act of 2003

62
Q

FACTA overview

A

-leave off final 5 digits of c.c. #
-one free credit report/yr
-destroy all credit report info. before discarding
-ID theft? notify only one of the 3 credit agencies
-lenders must provide score even if they rejected
-FACTA is enforced by Federal Trade Commission (FTC)

63
Q

Risk Management Policies

A

help reduce and manage the legal risks involved with doing business

64
Q

Successful Agents

A

Create a list and stick to it, have a plan and use it
-Obligations (appointments)
-Things you should do (farming, cold calling)
-Things you could do (practice listing presentation techniques)

65
Q

Describe the main ideas in creating a Business plan/process.

A

Objectives and goals
(wish, outcome, obstacle, plan)
-mission statement
-who are we
-why are we important
-what do we sell
-do we have any gaps
-what additions are needed to the team
-marketing plan
-Literature-does it sell the company/business
-services/vendors
-technology- are you keeping up with the pace, where can you improve
-pricing strategy- time/worth
-promotional strategy
-personnel organization- systems in place?

66
Q

SWOT (S)

A

Strengths

67
Q

SWOT (W)

A

Weaknesses

68
Q

SWOT (O)

A

Opportunities

69
Q

SWOT (T)

A

Threats

70
Q

Factors affecting the Supply of Real Estate

A

-land cost
-construction (labor and materials)
-taxation (income and property)
-Economics (Federal Reserve and fiscal policies
-local government building codes and zoning ordinances

71
Q

Factors affecting Demand of Real Estate

A

-Growth in employment
-transportation systems (Freeway, light rail)
-personal preference for an area
-availability of credit
-Federal government policy (taxes)
-demographics (type of home, age/life style of buyer, wanted amenities)

72
Q

Benefits of homeownership

A

-Occupancy
-Tax benefits
-Pride of ownership
-Security
-Investment

73
Q

RESPA and Regulation X

A

-Federally-related residential mortgage loans

74
Q

RESPA and Regulation X Exemptions

A

-more than 25 acres
-business, commercial or agricultural
-temporary loans
-secured by vacant or unimproved property (no new home construction
-loan assumptions
-secondary market

75
Q

RESPA-TILA disclosure rule

A

-use of two disclosures forms, Loan Estimate and Closing Disclosure forms

76
Q

RESPA section 8

A

-prohibits kickbacks and unearned fees
-no referral fees (lenders, title etc.)
-no split of charges except for actual services performed

77
Q

Net Listing Rules

A

1.only when principal insists -qualified so principal of not less than his or her desired price and to limit the broker to a maximum specified commission
2. license holder is obligated to advise a property owner their opinion of the market value when negotiating a listing or offering to purchase due to contact made while acting as a real estate agent

78
Q

Open Listing (problems)

A

-multiple commission claims
-does not protect the advertising broker
-brokers have incentive to close the sale quickly and at a lower than market price to obtain commission (loyalty problem)

79
Q

exclusive right to sell

A

-a commission is paid even if the property is sold by the owner

80
Q

Exclusive Agency

A

-seller agrees to list the property with only one broker during the term
-seller can sell the property without paying the commission to the listing agent

81
Q

CAN SPAM Act of 2003

A

sending emails with advertisements brokers and agents need to be careful their emails don’t contain:
1 falsification of routing or sending information in any email
2 any false, misleading or deceptive statements int he subject line
-message must contain clear and conspicuous notice that the message is an ad must include a physical postal address and requires an unsubscribe feature, honored within 10 days and active for 30 days after the message is sent.
-penalty if not followed up to $50, 120!

82
Q

Do NOT Call Registry updates

A

-update any download every 31 days
-penalties are up to $43,792 for each call
-numbers are permanently placed unless they release their own number, disconnection, or reassigned.
-if broker has established a business relationship (EBR), has an EBR with someone in a transaction within the last 18 months or someone who made an inquiry with the broker’s firm within the last 3 months
-if the consumer grants prior written permission

83
Q

Pros to buyer agency

A

-do not have to worry about unintentional dual representation
-brokers do not have to act as intermediary or make appointments
-agents are only responsible for giving advice and opinion to the buyer

84
Q

Cons to Buyer agency

A

-buyers don’t want to pay the commission
-agents can only have buyers sign the one sided agreement (one commission)

85
Q

Accredited Buyer’s Representative (ABR) Designation

A

educated to help buyers

86
Q

Accredited Luxury Home Specialist (ALHS) Designation

A

trained on selling luxury homes

87
Q

Certified Home Marking Specialist (CHMS) Designation

A

Help clients prepare their homes for sale through marketing dialogue and staging

88
Q

Marketing Strategy and Lead Generation

A

Creative marketing approach to generate leads based on buyers needs and expectations

89
Q

Military Relocation Professional (MRP) Designation

A

Relocating Military professionals

90
Q

NAR’s Green Designation

A

Principles of green as well as green building trends and practices

91
Q

New Home Construction (NHC) Certification

A

Development and new-home sales process

92
Q

Pricing Strategy Advisor (PSA) Certification

A

CMAs, pricing properties, understanding home values, and working with appraisers

93
Q

Real Estate Negotiation Expert (RENE) Certification

A

Negotiation techniques

94
Q

Seller Rep Specialist (SRS) Designation

A

working with sellers

95
Q

Seniors Real Estate Specialist (SRES) Designation

A

counsel senior clients through major financial and lifestyle transitions, refinancing or selling the family home

96
Q

Texas Real Estate Broker Designation

A

The only designation the general public recognizes

97
Q

Forming an LLC

A

File articles of organization with Texas Secretary of State- state the company is formed for the purpose of rendering professional services by individuals licensed in any type of prof. service

98
Q

Pros of being a broker

A

-office hours
-vacation
-personal time
-all real estate expenses are deducted
-freedom
-high potential, low capital investment
-no $ limits
-in control

99
Q

Cons of being a broker

A

-responsible for own health insurance
-paycheck is not consistent
-own retirement
-taxes put aside
-responsible for activities of sponsored agents
-unknown (fear)

Brokerage Exam 1 (1 decks)

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