Prac pp chp 1

Chapter 1The SalespersonHow to Get Started

I. Enter The Salesperson – Becoming a Traditional and Digital Expert

A. First, Get the Support of Your Family

Your time will not always be your own

Have six month’s savings

Keep your expectations realistic

Passing the state exam is public record

SPHERE OF INFLUENCE is a list of prospects that an agent regularly contacts

Interview with at least 3 brokers when selecting a sponsoring broker

B. Brokers Know When You Pass

II.THE BROKER INTERVIEW

A. How You Select An Employing Broker

Personal referrals from buyers or sellers are a great source for finding a broker

Your reputation as an agent is directly related to the reputation of the broker for whom you choose to work

B. The Appointment

Allow 1 hour for each broker interview You and the Broker are Interviewing each other

Dress sensibly in business attire

Be punctual and pleasant

First impressions count!

What Questions to Ask:

Start-up costs? Who pays for expenses?

Signs Business cards zipForm®

Advertisements

Desk fees

What Questions to Ask:

What are the New salesperson requirements?

Four-door car

Errors and Omission liability insurance

Business-like demeanor

Appropriate vocabulary

What Questions to Ask:

What Training and Support will I receive?

In-house training

Seasoned mentor

Shadowing other agents on their appointments

Local Association of Realtors®

What Questions to Ask:

What is My Portion of the Commission? When and how are commissions paid Seasoned agents get higher percentage STRAIGHT COMMISSION the agent is paid a

commission based on a percentage of the selling price at close of escrow

100% COMMISSION the agent receives all (or nearly all) of the commission earned by the office

What Questions to Ask:

What are Miscellaneous Benefits? Who Answers the Telephone?

III.LARGE vs. SMALL OFFICES

Large or Small?

Small firms tend to remain flexible and there’s no need for corporate approval

Small firm’s activities may be limited to selling

Large firms are diversified with more capital, but less flexible

Large firms have more overhead and less accurate control of its resources.

Always ask about a company’s long-range growth plan before deciding where you want to work

IV.INDEPENDENT CONTRACTOR and EMPLOYER RELATIONSHIP

Independent Contractor-Employer Relationship

• All salespeople actively engaged in professional real estate activities MUST be employed by a licensed real estate broker

• INDEPENDENT CONTRACTOR sells results rather than time, and his or her physical conduct in not subject to the control of another

• EMPLOYEE works under the direct control and supervision of the broker

A. Independent ContractorAgreement Highlights

• Independent contractor relationship

• Proprietary information & files

• Supervision

• Compensation

• Termination policy

• Dispute resolution

V. Your Planning Objectives and Goals

Planning Objectives & Goals

Now that you’ve carefully selected your office, you need to set realistic goals

Plan your work and work your plan

Write down your yearly goals and put them away

Review your goals periodically for updating

A. Sphere of influence Immediately contact friends, relatives, past and present

co-workers

A GEOGRAPHICAL FARM is a group of people within a geographical area with whom the agent stays in touch with on a regular basis

“Spheres of influence” may include clubs, church groups, neighbors or organizations

Introduce Yourself!

B. Schedule Daily Activities

Write out a schedule of your daily activities

Return phone calls promptly

Develop new leads

Review new listings

C. Soliciting Call on past clients, buyers, and sellers

COLD CALLS are telephone calls to people you don’t know

WARM CALLS are to people you already know and are usually more productive

EXPIRED LISTINGS are listings that did not sell within the contract period

REVERSE DIRECTORY is a website or publication similar to a phone book, where phone numbers are listed by address rather than name

D. Previewing

You should preview new properties on behalf of potential buyers and for your own information

Put together a Sales Kit to aid you in your daily real estate related activities The majority of your “sales kit” will be contained on

your mobile device, but “hard copy” contracts, addendums, etc., should be kept in a briefcase for easy access

E. Showing Properties

Remember that only “direct” personal contacts lead to sales

Buyers should be pre-qualified by at least one lender before showing properties

Do not show more than 5 houses in any one showing

Ask buyers for their comments and feedback

F. Becoming An Expert

Create your own area of expertise: Condo sales New sales Probates Foreclosures Property management

There are many advanced Realtor® designations that indicate a higher degree of education and specialty

G. Attributes of An Effective Salesperson

VI.ENTER THE BROKER

A. Agency Representation

The broker acts as an intermediary –a catalyst- in bringing together buyers and sellers

A FIDUCIARY RELATIONSHIP, means the broker owes a duty of the highest care and confidentiality to his or her principals, whose interest they promote even at the cost of some greater benefit to themselves

When a broker represents more than one party, it is known as DUAL AGENCY

Who the broker is representing must be disclosed to all parties, in writing, prior to entering into a transaction

B. Directing and Supervising Many brokers have POLICY MANUALS in their offices which

are designed to give rules and policies for the staff in their relationships inside and outside the office sphere

Broker office’s must run as a well disciplined team

A broker must provide leadership to his/her salespeople

Each office should have a detailed TRANSACTION FILE which includes all property contracts, documents, and disclosures signed by the principals

To save paper, a GREEN OFFICE will digitally scan items in the transaction file and be kept for 3 years

C. Cooperating Brokers Most properties are not sold by the listing broker

A cooperating broker is a broker who participates in facilitating a real estate transaction with the broker who listed the property

Showing agents should always leave a business card in an agreed upon location when showing a property

A smart listing agent should collect these cards regularly and get feedback from the showing agents and share this information with the seller

D. CommissionsMost brokers are paid a commission based on a

percentage of the sales price they obtain on their transactions

All commissions are negotiable between the seller and the listing broker

VII.THE BROKERAGE FIRM

A. Getting Started in Business

As a salesperson, if you want to open your own office, you’ll have to become a broker

You will need to do the following steps: Get licensed as a broker Secure the necessary capital Decide on a location and building Obtain a business license Have a telephone and internet system installed Open a trust account and business checking account Order supplies and get office equipment Order signs Create a policy manual and training program Hire a receptionist Join local, state, and national associations of Realtors® Announce yourself Establish a website

B. Keeping Up with the Competition

Your transaction information should be available anytime and anywhere, using CAR’s new app, ZIPFORM®MOBILE WEB EDITION

C. Forms of Business Ownership

A SOLE PROPRIETORSHIP is characterized by an office run by one owner solely responsible for all decisions

UNLIMITED LIABILITY

A PARTNERSHIP is an association of two or more persons as co-owners of a business for profit

UNLIMITED LIABILITY TO ALL PARTNERS

A CORPORATION is a legal “artificial being” that conducts business under its chartered name

LIMITED LIABLITY TO OWNERS STOCK ISSUED S CORPORATIONS

VIII.RECORD KEEPING

RECORD KEEPING Trust Fund Records

All brokers must keep detailed records Trust funds must be deposited within 3 business days COMMINGLING is the illegal mixing of he client’s and

brokers funds CONVERSION is the illegal practice of misappropriation and

using the client’s money

Sales Records Keep for 3 years/4 years if doing Property Management Filing systems should be uncomplicated All files stay in the office/office computer/copies can be

made

CHAPTER SUMMARY• Enter the Salesperson

• Family support• 6 mos. Savings

• Broker Interview• Selecting your broker• The appointment

• Large or Small Offices

• Employer-Employee Relationship• Independent Contract• Employee

Planning Objectives & Goals Sphere of Influence Soliciting Previewing Showing properties

Enter the Broker Agency Fiduciary Cooperative Sales Commissions

CHAPTER SUMMARY

• Brokerage Firm• Getting started

• Soles Proprietorship

• Partnership

• Corporation

• Record Keeping• Trust Fund Records

• Sales Records

• 3 years