Chapter 1: Introduction to Real Estate Summary

Real estate is affected by:

• Supply and demand.
• Costs incurred in bringing the properties to market.
• Value aspects of desire, usefulness, scarcity and ability to pay.

If the economy picks up, sales increase. If it slows, sales decrease.

A Multiple Listing Service (MLS) is an organization of member brokers who share listing information with one another.

Real Estate Property: Residential, Industrial, Commercial, Agricultural, Special purpose, Recreational and Investment property.

Specialization areas: Type of property, Clients, Geography, Business Type, Transactions, Auction Sales and Mortgage loans.

Keep in mind upon choosing a broker:

• Quality training programs are available in-house and locally.
• The broker encourages training and provides a mentor program for the licensees.
• The office is dedicated to your desired specialty area.
• The firm employs a number of successful agents (long history with the firm).

Broker-Salesperson Relationships

A salesperson is licensed to perform transactions on behalf of the licensed broker and may receive compensation for performed activities ONLY from the employing broker. The broker is responsible for the licensee's professional actions. 

An employee works under the supervision and control of the broker. An independent contractor is hired to perform certain acts, but the broker cannot control how the salesperson performs those acts.

Many brokers require that licensees carry errors and omissions/automobile liability insurances.

Licensee’s written employment agreement must be dated and signed and should clearly:

• State each person's responsibilities to the other.
• Discuss the broker's supervision.
• Describe the licensee's duties.
• Clarify the licensee's compensation program.

Planning and Setting Goals:

• Make your goals definite and measurable.
• Put your goals in writing.
• Realize that goals are not rigid.

Devote time to daily activities such as returning phone calls, developing new leads, reviewing new listings, calling potential clients ("National Do Not Call Registry" guidelines), preparing for listing presentations, etc.

Activities which will lead to success as a salesperson:

• Develop your "sphere of influence" by contacting friends, family members, neighbors, past co-workers, etc., and letting them know you are a real estate agent.
• Preview your company's listings.
• Spend time learning about other company's listings in your geographic area or your area of specialty.
• Familiarize yourself with your office's policies and procedures manual.

National Association of REALTORS^® (NAR) is the largest and most prestigious real estate organization in the world. NAR requires its members to take a mandatory ethics course every four years.

National Association of Real Estate Brokers (NAREB) is the oldest and largest minority trade association in the United States. Members have the designation of "realtist." A "realtist" must belong to both the local board and the national organization.

National Association of Hispanic Real Estate Professionals (NAHREP) is primarily made up of Hispanic members who meet and work toward real estate goals that are beneficial to the Hispanic population. 

Asian Real Estate Association of America (AREAA) is committed to improving success and business opportunities for real estate licensees who serve the Asian American community. 

California Association of REALTORS^® (CAR) (state division of NAR) allows members to conduct their individual businesses successfully and promotes the preservation of real property rights. CAR offers many seminars and educational opportunities to its members.