This chapter discusses how to get started as a salesperson by interviewing and selecting a broker, setting goals and objectives, and understanding the broker-salesperson relationship. It covers key steps like developing a sphere of influence, soliciting clients, and previewing and showing properties. The chapter also summarizes the roles and responsibilities of brokers, different types of brokerage firms, and important record keeping requirements.

1. Chapter 1
The Salesperson
How to Get Started

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

3. 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

4.  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

5. II.
THE BROKER INTERVIEW

6. 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

7. 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!

8. What Questions to Ask:
 Start-up costs?
 Who pays for expenses?
 Signs
 Business cards
 zipForm®
 Advertisements
 Desk fees

9. What Questions to Ask:
 What are the New salesperson requirements?
 Four-door car
 Errors and Omission liability insurance
 Business-like demeanor
 Appropriate vocabulary

10. 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®

11. 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

13. What Questions to Ask:
 What are Miscellaneous Benefits?
 Who Answers the Telephone?

14. III.
LARGE vs.
SMALL OFFICES

15. 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

16. IV.
INDEPENDENT
CONTRACTOR and
EMPLOYER
RELATIONSHIP

17. 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

18. A. Independent Contractor
Agreement Highlights
• Independent contractor relationship
• Proprietary information & files
• Supervision
• Compensation
• Termination policy
• Dispute resolution

20. V. Your Planning
Objectives
and Goals

21. 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

22. 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

23. Introduce
Yourself!

24. B. Schedule Daily Activities
 Write out a schedule of your daily activities
 Return phone calls promptly
 Develop new leads
 Review new listings

25. 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

26. 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

27. 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

28. 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

29. G. Attributes of An Effective
Salesperson

30. VI.
ENTER THE BROKER

31. 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

32. 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

33. 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

35. D. Commissions
Most 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

36. VII.
THE BROKERAGE
FIRM

37. 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

38. B. Keeping Up with the
Competition
 Your transaction information should be available anytime
and anywhere, using CAR’s new app,
ZIPFORM®MOBILE WEB EDITION

39. 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

40. VIII.
RECORD KEEPING

41. 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

42. 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

43. CHAPTER SUMMARY
• Brokerage Firm
• Getting started
• Soles Proprietorship
• Partnership
• Corporation
• Record Keeping
• Trust Fund Records
• Sales Records
• 3 years