Sales, Leasing, and Counseling Flashcards
Target marketing
involves choosing a specific group to focus on offering your skills as a sales associate to and catering your communication, marketing efforts, and skill set to that group.
-A common way to do this is through farming.
Farm area (target area) is a specific area
-a real estate associate chooses to specialize and become an expert in.
-an area that you want to farm for business
-market to, want to get to know people, it’s a subdivision
-example: lived there, 400 properties, did 8x8 campaign (8 mailing postcards over the 8 weeks) get your name out there
Ethics dictate
what is considered acceptable at a higher level
The state helps regulate and protect this coastal property, along with taking a large part of the responsibility of regulating:
-the recording of property conveyance
-zoning
-the IRS
the recording of property conveyance
MLS (Multiple Listing Service) is a
database in which local member brokers share listings so other brokers can easily find buyers for those properties.
- it’s like a Google search for local properties.
-It is important to note that MLS can be accessed by non-realtors in Florida (but not in all states). In Florida, anyone can create an MLS.
Realtors are different from other real estate practitioners because the Code of Ethics and Standards of Practice of the National Association of REALTORS® requires a higher standard than the law requires.
Getting a real estate license does not make someone a Realtor (also written as REALTOR®). That person would simply be called a license holder. However, most real estate professionals join a local board of Realtors, such as the National Association of REALTORS®. As a Florida resident, you are eligible to join the Florida REALTORS®.
What three qualities best define a Realtor? According to the Code of Ethics’ Preamble, they are:
Competency, Fairness, Integrity
Competency
Perform your duties as a real estate professional with expertise.
Fairness
Be fair and considerate in your dealings with others at all times.
Integrity
Always behave ethically in a manner consistent with the NAR Code of Ethics.
One important thing to note about real estate transactions is that:
Sales associates work for the broker but they perform activities and actions on behalf of a buyer or seller.
This means that during a sale, brokers are acting as agents or intermediaries between two (or more!) parties to a transaction.
Both of these points contribute to the concept of agency, which is something we will talk about in great detail later.
Real estate transactions require the knowledge of concepts like:
title, market conditions, mortgages, negotiations, taxation
The sale or lease of a property could involve a:
Listing (or seller’s) agent
Selling (or buyer’s) agent
Landlord’s agent
Leasing agent
Egbert is trying to sell his art gallery. Egbert is a prolific connoisseur of art, but he knows very little about real estate. He reaches out to a listing agent to help him navigate the process of listing and selling his art gallery.
A follow-up is
the contact a sales associate makes with a buyer or seller after closing a real estate transaction.
ex: phone call to reach out to a seller to make sure everything went smoothly and see if they have any loose ends they need to tie up. Or, it could be as thoughtful as sending a “welcome home” card to first-time home buyer.
Residential real estate can include:
Single-family residences
Vacation properties
Multi-family residences
Townhouses
Condominiums
Apartment buildings
Manufactured homes
all residential properties are used for some sort of habitation. Therefore, they must be approved for the use of habitation. Makes sense, right? For example, a movie theater (though it may have comfy seats) will probably not be deemed fit for habitation.
Residential vs. Commercial = property type determines how a sale is carried out
Aparna is working with single-family residences, vacation properties, and multi-family residences. She likely specializes in:
Residential property
Commercial real estate generally refers to properties that:
Are used for business purposes
Are used to generate revenue
Are typically considered investment properties (more on these later)
ex: Office buildings, Retail complexes, Gas stations, Entertainment venues, Restaurants
commercial property revolves around the idea that commercial properties generate revenue for their owners.
Alberto is a sales associate who is very interested in revenue and profit. A specialization that may serve his interest well is:
-commercial property
-residential property
-use-based property
-agricultural property
Commercial property
Industrial real estate is a broad category that includes properties:
Used for the manufacture of products or materials
Used as distribution facilities
Used as warehouses
ex:Manufacturing plants, Distribution facilities, Warehouses, Storage facilities, Research facilities, Data centers
While industrial real estate is often purchased as an investment property, the tenants usually have specialized (and costly) needs. This results in a high percentage of owner-occupants in these properties, such as companies that intend on using the property themselves for manufacturing, warehousing, and distribution.
Agricultural real estate includes:
Properties used for the commercial cultivation of food, feed, and fiber
Commercial ventures used to provide us with fruits, vegetables, livestock, plants, wood products, and other resources that are an essential part of our daily lives
ex:Family and commercial farms, Ranches, Orchards, Nurseries and greenhouses, Pastures, Feed lots
Agricultural properties can vary greatly in size and purpose. Some properties include a vast number of improvements while others are little more than raw land with a border fence.
Specialized knowledge is needed for a license holder to operate successfully and competently in the agricultural real estate space.
Agricultural Aggie is looking at properties to start his new strawberry farm. He asks his license holder about the zoning laws in his area.
Can he plant twenty acres of strawberries?
Is he allowed to add goats to his farm in three years’ time?
What about accessing water sources for irrigation?
Business brokers and business real estate is unique in that these transactions can include both:
Tangible property, such as grass and a real home you can touch
Intangible property, such as a business model or restaurant with award-winning recipes you can’t always physically touch
Both of these types of property are assets of a business.
In Florida, a business real estate transaction is called a business opportunity and is defined as
a real estate transaction involving a business that already exists and includes both tangible and intangible assets.
ex: selling both business (peaNOT butter) and her storefront downtown. ready to sell her business. She seeks out a business broker to handle the transaction (a business opportunity) and sell both her business and her storefront downtown.
A special-purpose property is a
property created with a special, and often limited, purpose in mind. For example, a school or a religious building is a special-purpose property.
Special-purpose real estate properties:
Are often publicly owned
Require substantial reinvestment to convert to another purpose or use
Do not come up for sale as frequently as other property types
ex: Churches, Schools, Recreational facilities, Cemeteries, Government-held land
