Unit 1: Getting Started in Real Estate Flashcards
What does it mean to be a real estate professional?
Real Estate Professionals help people…
identify and fulfill their needs.
Real Estate and the Economy
Most construction, material suppliers, service providers etc, (BLANK) directly or indirectly
from a healthy real estate market
Benefit
Real Estate Marketplace
Some of the reasons why real estate marketplace is unique include the following…
Product Differentiation - Every property is different, No two locations are the same.
Emotion - Emotion plays a significant part in the purchase decision. Emotion plays a lesser role for sellers, who are more likely to make their decisions based on logic.
Buyer and Seller Knowledge -Some buyers and sellers in the marketplace have imperfect or incorrect knowledge of prices paid for for similar properties.
Will-sell vs. Must-sell owners & Will buy vs. Must buy buyers
Terms & Loans
The DRE typically regards real estate salespeople as (BLANK) of their employing brokers. WHY?
EMPLOYEES
While salespeople may operate independently, they are ultimately considered to be under the supervision and responsibility of the licensed broker that they are associated with.
The real estate marketplace is also a (BLANK) marketplace ——- (BLANK) based on price range.
STRATIFIED
As an example, there might be a seller’s market in homes priced below 750,000 with many buyers than sellers. At the same time there might be a glut of homes priced between $1 million and $2 million, with few buyers
Applicants for both real estate salesperson and broker license must be at least (HOW OLD?) and be honest and truthful.
18 years of age
What is the passing percentage for the SALESPERSON license exam?
70%
Along with an experience requirement, what is the passing percent for the BROKER’S license exam?
75%
The IRS will treat the real estate salesperson as an INDEPENDENT CONTRACTOR if the following three criteria are met:
- The salesperson is licensed as a real estate agent.
- Reimbursement to the salesperson is based solely on sales, not on hours worked.
- There is a written contract stating that the salesperson will be treated as an independent contractor for tax purposes.
An employing broker wants a salesperson to be an independent contractor because ….
then they are relieved of withholding taxes and Social Security, as well as not contributing to Social Security for the salesperson.
Real estate salespeople are treated as employees for the purpose of ….
workers’ compensation insurance coverage.
Most real estate agents are primarily engaged in which area of activity?
Residential Property
