Chapter 1
Introduction

Introduction to Real Estate Brokerage

*   What is the real estate brokerage business?

*   What types of specialties are there in the business?

*   What leads to success?

*   What are the characteristics of the business?

*   The brokerage business relationship with the legal environment.

What is the Real Estate Brokerage Business?

*   It is a service business.

*   Assisting the the sale and purchase of property

*   Some level of property management

*   Related services

*   Appraisal

*   Land development

*   Construction

*   Finance

*   Insurance

Real Estate Brokerage Specialties

*   Residential sales (new and resales)

*   Commercial sales

*   Investment properties

*   Business properties

*   Industrial properties

*   Land sales

*   Recreational properties and timeshares

Success in Brokerage

*   10% of the people make 90% of the money

*   Success is an attitude

*   Success requires flexibility and hard work

*   Successful salespeople generally work 60+ hours per week

Managing Brokerage Operations

*   Listing management

*   Sales management

*   Commissions

*   Compensation

Managing a Brokerage Business

*   Financial control

*   Budgeting

*   Starting up

*   Office location

*   Office arrangement

*   Marketing the brokerage business

Personnel Management in Real Estate Brokerage

*   Personnel needs and evaluation

*   Employment contracts

*   Personnel selection

*   Supervision

*   Ethics and policy

Legal Structure of the Real Estate Brokerage Business

*   Requirement of licensing to enter the business.

*   Firm

*   Broker

*   Salespersons

*   Agency relationships

*   Seller agencies

*   Buyer agencies

*   Professionalism

The Brokerage Business

*   Locally oriented

*   Competitive and cooperative

*   Firms compete with each other

*   Firms often cooperate with each other especially with MLS

*   Brokerage market is the market for the firm's services

*   Real estate market is the market in which the firm's services are used.

*   Money market is the market for money needed to purchase real estate.

The Brokerage Process

*   The listing process

*   The marketing process

*   Negotiation process

*   Finalization process

The Listing Process

*   Canvass for listings

*   Solicit listings

*   Sign listing contracts

*   Multiple listing service

The Marketing Process

*   Advertise property

*   Find prospects

*   Show property

*   Solicit offer

Negotiation Process

*   Negotiate offer

*   Execute sales contract

*   Offers submitted by another broker

Finalization Process

*   Arrange financing, appraisals, abstract updates, title searches, completion of pre-sale contingencies

*   Draw up settlement statement

*   Prepare documents

*   Closing

*   Receive and distribute funds

*   Execute title transfer

The Brokerage Business Relationship with the Legal Environment.

*   The practice of law by the broker--the unsprung trap

*   If the broker gives legal advice, the broker is in trouble.

*   If the broker fails to disclose potential legal difficulties, the broker is in trouble.

*   Licensing and agency laws

*   Other local, state, and federal laws