Unit 1: Getting Started in Real Estate Flashcards
The real estate marketplace is said to be a _____ Market
Stratified
Stratified
The market behaves differently based on the price range you’re in
Buyer’s Market
Many Sellers and Few Buyers. Sellers must compete for the available buyers, which usually means lower prices.
Seller’s Market
Buyers must compete among themselves for properties. In a seller’s market, there may be multiple offers for a property. Prices will increase in a seller’s market
Will Sell Sellers
Those who don’t need to sell but who will sell if the price is right.
Must Sell Sellers
Seller is highly motivated or desperate. The price asked could be less than the sale prices of similarly desirable properties.
Will-Buy Buyers
Buyers who don’t really have to buy. Generally, they look for must-sell sellers; Bargain Hunters.
Must-Buy Buyers
Generally, look for properties that meet their specific needs. They like bargains but are more likely to pay a reasonable price.
Independent Contractor Criteria (IRS)
- The salesperson is licensed as a real estate agent
- Reimbursement to the salesperson is based solely on sales, not hours worked
- There is a written contract stating that the salesperson will be treated as an independent contractor for tax purposes
Worker’s Compensation Insurance
Brokers must carry Workers’ Compensation Insurance