Unit 1: Getting Started in RE - Learning Objectives Flashcards
Explain the effect the real estate industry has, both directly and indirectly on the economy.
More jobs have been created in the real estate and related supply, construction, and service industries than from any other source. Real estate salespeople work at the end of the production and marketing pipeline keeping our products moving. If we were unable to effectively market products the entire process would slow, resulting in increased unemployment that would have been a recessionary effect on our entire economy.
Describe the unique nature of the real estate marketplace and changes that are taking place within the real estate profession.
An imperfect marketplace. Values are generally set by supply and demand not by sellers. Is it the price a buyer will pay and not the price a seller desires that ultimately determines value.
- Product differentiation - every property is different.
- Emotion - emotion plays a significant part in a purchase decision. This emotional desire can play a significant role in determining what a buyer will pay.
- Buyer and seller knowledge - while internet homesites have resulted in better informed buyers and sellers the listing prices alone can be misleading. List prices are not sale prices and many listings expire unsold.
Explain how brokers are compensated and changes taking place to compensation.
Broker’s fee or commission is generally a percentage of the sales price. The fee is negotiable between the broker and the client although most brokers will stick to the same percentage fee for similar properties.Some limited service brokers help the owner to sell without an agent. They prepare ads, provide website placement and provide open house material for the Sale signs and will write up a contract should a buyer procure by the seller.
List specialties available within or related to the real estate profession.
Manufactured homes, tract sales, residential income property, Speculator (flipper) sales, Commercial/industrial properties, Business opportunities, land and farm brokerage, lot sales, auction sales, time-shares, counseling, subdividing, loan brokerage, mortgage loan activities, personal assistants, property management, leasing agent and appraisal.
Describing the relationship between brokers and salespeople and factors to consider in choosing a broker
Training offerings and mentor programs. Commissions percentages. Culture. Digital Resources. Business email. Signage. Start up cost.
Explain the necessity of planning, goal setting, time management, attitude, continued education, and training for a real estate career.
This helps lead to follow through. Vague goal setting lacks measurements and track-ability. Settings goals helps find areas of improvement and helps achieve success.
