The Key Procedures in Operating a Brokerage

Question 1

What 4 skills must a broker be proficient in to generate business?

Answer 1

1. Obtaining a client listing by prospecting and pricing
2. Marketing a listing (if a more precise estimate of market value is desired, the seller should hire a licensed appraiser)
3. Facilitating the closing of a transaction
4. Managing market info

Question 2

List some examples of advisory services

Answer 2

Providing an estimate of value

Performing market analysis

Managing property

Question 3

Who can sponsor a licensed salesperson?

Answer 3

Only a broker

Question 4

A broker may hire a sales agent as an _

Answer 4

Independent contractor (IC) or employee

Question 5

An agent employee of a broker may receive _

Answer 5

Wages, salary, additional commissions, expensive reimbursements, benefit plans

Question 6

What is the traditional source of a broker’s income?

Answer 6

Listings

Question 7

What 3 steps are taken to market a listed property?

Answer 7

1. Initiating a marketing plan: a combo of promotional and selling activities
2. Selling the prospect: the offering and counteroffering process continues until a meeting of the minds results in a sales contract
3. Performing pre-closing activities

Question 8

What 2 common violations of escrow regulations should a broker avoid?

Answer 8

Commingling: mixing the broker’s personal/business funds with escrow

Conversion: misappropriation of escrow funds for the broker’s business