LESSON 12: IMPLEMENTATION AND PRESENTATION Flashcards
What is a “real estate agent” according to the passage?
A real estate agent generally helps people buy and sell property, but real estate is a specialized profession with different experts. A residential specialist handles home buying and selling, while a commercial specialist focuses on commercial property.
Why is it unlikely for a broker to specialize in all types of real estate?
Specialization requires focus on a particular area. A broker cannot truly specialize in all types of real estate, as that would contradict the definition of specialization.
What is the difference between a seller’s agent and a “lister”?
A “lister” refers to a broker who mainly gets listings and may not focus much on client service or the sale process, while a professional seller’s agent goes further by working actively to move the property to a closing and ensuring the seller’s needs are met.
What are some key reasons for using a seller’s agent?
Key reasons include experience, protection, knowledge of the area, pricing expertise, market knowledge, networking, negotiation skills, managing paperwork, post-closing support, and generating repeat business from satisfied clients.
How does a seller’s agent provide experience?
A seller’s agent brings professional experience to move a property from listing to closing, ensuring the process is smooth and the seller receives the proceeds of the sale, much like other professionals are needed for complex tasks (e.g., surgery, legal cases).
How does a seller’s agent protect the seller?
The agent screens non-serious buyers, arranges showings, and takes on tasks the seller may not have time, knowledge, or experience to handle.
How does a seller’s agent use knowledge of the area?
The agent knows the local market, including what properties are selling and for how much, as well as what to emphasize and how to handle property nuances, such as upgrades that increase value.
How does a seller’s agent assist with pricing a property?
The agent uses their knowledge of the area and market to accurately estimate the property’s value. They can prevent a property from being overpriced or underpriced, which could harm the sale.
What market knowledge does a seller’s agent bring to the table?
A seller’s agent understands both residential and financing markets, advising the seller on how these markets affect pricing, timing, repairs, competing properties, and other sale aspects.
How does networking benefit a seller’s agent?
Through constant communication with other agents and brokers, a seller’s agent can gather useful information, such as the best financial institutions, reputable tradespeople, and potential buyers.
How does a seller’s agent assist with negotiations?
A seller’s agent can negotiate on behalf of the seller without getting personally involved, addressing concerns about the property and preventing resentment or retaliation that could derail the deal.
How does a seller’s agent manage the paperwork involved in a sale?
A seller’s agent helps navigate the numerous legal documents, disclosures, contracts, amendments, and insurance policies that accompany a sale, ensuring the transaction is completed legally and efficiently.
What post-closing support does a seller’s agent provide?
After closing, a seller’s agent can address any remaining concerns or issues, helping the seller resolve problems that might arise.
Why is repeat business important for a seller’s agent?
A successful broker relies on referrals from satisfied clients. Earning referrals is a key motivator for brokers to over-perform and deliver exceptional service to their clients.
What is the first step in establishing a relationship with a seller as a listing agent?
The first step is presenting and explaining the IABS form as required by TREC, and hopefully having it signed.
What should a listing agent review with a seller?
The agent should review the firm’s listing agreement, explain the MLS possibilities, discuss commission structures, and understand the seller’s goals and restrictions.
What should a listing agent do if a seller’s demands make a property difficult to market?
If a seller’s demands are unreasonable or make the sale process too difficult, the agent may choose to decline the listing rather than proceed with an unmanageable property.
What happens if a listing agent and a seller agree to move forward with a listing?
The agent should inspect the property, do the necessary research, and propose a listing price, followed by getting the listing agreement signed.
What document must be provided by the listing agent once the listing agreement is signed?
The agent provides the TREC No. 55-0 (Seller’s Disclosure of Property Condition), which is to be completed by the seller based on their knowledge, and serves as a checklist during the inspection process.
What should a listing agent consider when preparing a property for showings?
The agent should consider preparing the property for showing, discussing exclusions from the price, and explaining the process for scheduling and conducting showings. This includes limitations imposed by the seller, such as time restrictions or the presence of pets.
How do sellers of expensive homes or celebrities handle showings and privacy?
Sellers may want to limit showings, keep their identity anonymous, restrict access to pre-qualified buyers only, or avoid public marketing. These considerations are typically rare and apply to high-end or celebrity properties.
What is the final step a listing agent should take before closing?
Before closing, the listing agent should review the contract with the client, ensure all deadlines are met, and follow up consistently to make sure everyone fulfills their responsibilities, ensuring a smooth and quick closing.
Why is it important for the listing agent to be present at closing?
The listing agent should be present at closing to support the seller, handle any last-minute issues, and celebrate the successful transaction, while encouraging future referrals.
What role does a buyer-broker play in a real estate transaction?
The buyer-broker acts as an advisor, counselor, advocate, and supporter for the buyer throughout the process.
What is a key responsibility of the buyer-broker when working with a client?
The buyer-broker must understand the buyer’s wants and needs, as well as the motivations behind their purchase.
How does a buyer-broker help the client in terms of market knowledge?
The buyer-broker provides up-to-date information on the local real estate market and trends.
What is the buyer-broker’s goal when working with the client?
The goal is to satisfy as many of the buyer’s needs and wants as possible, considering the local market and financial constraints.
How should a buyer-broker use their knowledge of the local market?
A buyer-broker should use knowledge of the local market, including factors like schools, safety, and municipal plans, to help the client make informed decisions.
Why is a buyer-broker motivated to find the right home for their client?
Without finding a suitable home for the buyer, the broker will not earn a commission, making them more motivated to help.
What is the buyer-broker’s motivation in comparison to the seller’s agent?
The buyer-broker is more motivated since they earn a commission only if the buyer successfully purchases a home. A seller’s agent receives a commission regardless of which buyer purchases the property.
What motivates a buyer-broker to ensure a happy client?
A happy buyer is likely to provide future referrals, which is important for the broker’s business growth.
How does a buyer-broker contribute to the inspection and repair process?
The buyer-broker ensures inspections are done and any necessary repairs are handled to the buyer’s satisfaction.
What is the buyer-broker’s role in guiding the client through the transaction process?
The buyer-broker ensures a successful conclusion to the transaction, assisting the client from beginning to end.
What is the importance of motivation and positive reinforcement for a buyer-broker?
The prospect of a successful transaction and a happy client provides motivation and positive reinforcement for the broker, leading to higher success rates.
What should new agents know about obtaining their license?
Getting a license is the easy part; the real learning comes after getting licensed and starting work in the real world.
How should new agents budget their income and expenses?
New agents should budget for at least six months of expenses, considering low income and high professional expenses early on.
Why is it essential for new agents to network with other professionals in the industry?
Networking builds trust, provides learning opportunities, and helps agents learn who to trust and avoid in the business.
What should new agents do to expand their client base?
Agents should create a list of potential clients, including friends, colleagues, and contacts from various social and professional groups.
Why is familiarity with the internet and social media crucial for agents?
The internet and social media are key to modern real estate marketing and can help agents become more efficient, increase exposure, and grow their business.
How should new agents maintain their practice routine?
New agents should regularly check the local MLS, stay up to date with market changes, check on pending transactions, maintain client contact, and monitor marketing efforts.
What is essential for agents to keep track of in the real estate market?
Agents should track new listings, price changes, and sold listings to adjust pricing strategies for both their clients and listings.
What tools can agents use to track pending transactions?
Agents can use electronic tools and apps to manage deadlines, stay organized, and streamline project management.
What is the importance of marketing for real estate agents?
Marketing requires constant updating and revisions to adapt to market conditions and generate new client prospects.
Why is continuing education important for real estate agents?
Agents must stay on top of continuing education and any specialty certifications to meet industry requirements and enhance their skills.
Who is required to have errors and omissions (E&O) insurance?
A brokerage must provide proof of E&O insurance with a minimum annual limit of $1 million for each occurrence if the designated agent owns less than 10% of the business.
What are some common disputes that may arise between a broker and client?
Price disputes, concealment of documents or facts, inspection issues, interference with closing, discrimination, and slander/libel are common issues.
What does “subrogation” mean in the context of E&O insurance?
Subrogation occurs when an insurance company, after paying a claim, assumes the rights to sue the responsible party to recover the paid amount.
