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
Real Estate Brokerage Specialties
Residential sales (new and resales)
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
Managing a Brokerage Business
Marketing the brokerage business
Personnel Management in Real Estate Brokerage
Personnel needs and evaluation
Ethics and policy
Legal Structure of the Real Estate Brokerage Business
Requirement of licensing to enter the business.
The Brokerage Business
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
The Listing Process
Canvass for listings
Sign listing contracts
Multiple listing service
The Marketing Process
Execute sales contract
Offers submitted by another broker
Arrange financing, appraisals, abstract updates, title searches, completion of pre-sale contingencies
Draw up settlement statement
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