2. Outline
I. Real Estate Brokers vs. Sales Associates
II. The Real Estate Sales Process
III. Real Estate Regulation
IV. Legal Aspects of Agency Relationship
V. Other Real Estate Brokerage Related Issues
4. I. Real Estate Brokers vs. Sales Associates
A real estate broker is an who brings together , assists in negotiating
agreements between them, executes their orders, and receives a in
compensation for services rendered.
Brokers vs. Agents: Real estate brokers are individuals licensed by state
governments to arrange real estate sale or lease transactions.
Real estate sales associates (or salespersons) are also individuals licensed by
state governments to arrange real estate sale or lease transactions but
5. Real Estate Brokers and Salespersons
• A broker is an intermediary who brings together buyers and sellers,
assists in negotiating agreements between them, executes their
orders, and receives a commission (or brokerage) in compensation for
services rendered.
• Real estate brokers are individuals licensed by state governments to
arrange real estate sale or lease transactions for a commission
• Real estate salesperson are individuals licensed by state governments
to arrange real estate sale or lease transactions under the supervision
of a real estate broker
6. II. The Real Estate Sales Process
1. Listing presentation
2. Listing agreement
3. Marketing the property and qualifying buyers
4. Presentation of offers and negotiations
5. Contract
6. Services (surveys, inspections, etc.)
7. Settlement or closing
7. II. The Real Estate Sales Process
1. Listing presentation –
- goal: to get the listing agreement signed
- usually done in 2 meetings
- use listing (or seller’s) package
8. II. The Real Estate Sales Process
• 2. Listing agreement (4 different types):
i. open listing:
the “selling” (buyer’s) broker earns the commission
ii. exclusive brokerage (or agency) listing:
the “listing” (seller’s) broker earns the commission, but the seller reserves the right to sell the property
iii. exclusive-right-to-sell listing
the “listing” (seller’s) broker earns the commission, even if the seller sells the property
iv. net listing
the seller is guaranteed a “net” sales price
v. limited service listing
the broker provides some services for a fee
9. II. The Real Estate Sales Process
3. Marketing the property and qualifying buyers
- marketing strategy is very important to create interest
- qualifying buyers eliminates waste of time
4. Presentation of offers and negotiations
- use the sales contract (buyer’s) package
5. Contract
- the FL real estate sales contract is very complicated
- hire a real estate attorney6. Services
- surveys, inspections, repairs, appraisals, insurance, etc.
7. Settlement or closing
- title converts to new owner(s)
- all funds are exchanged
10. Legal Aspects of Broker- Client Relationship
• In an “agency relationship,” one party (the principal) authorizes
another party (the agent) to act on his or her behalf.
• In real estate, a property owner may hire a real estate broker to help
find a buyer for the property. Or, a potential buyer may hire a real
estate broker to help find a property for purchase. Or, a real estate
broker may hire a real estate salesperson to assist in locating buyers
or properties.
• Real estate brokers (and salespersons) who are hired by a principal as
an agent owe the principal their complete loyalty and must always act
in the principal’s best interest.
• Dual Agency
11. Broker Commission
• When property sells
• When broker finds a ready, willing & able buyer (at listed price)
• Listing agreement clause to protect commission for certain period
after expiration
12. What are the duties of a real estate
consultant?
13. What are the duties of a real estate
consultant?
• Consulting with clients to identify their needs, preferences, and
financial concerns. Maintaining an extensive database of all
properties for sale. Developing strategies to increase the value of
properties for clients looking to sell. Conducting negotiations with
real estate agents on behalf of clients.
14. What are the qualifications of a real estate
consultant?
15. What are the qualifications of a real estate
consultant?
• A real estate consultant must have at least ten (10) years of
experience as a registered real estate broker or five (5) years of
experience as a real estate appraiser.
16. What is the difference between a property
consultant and a real estate agent?
17. What is the difference between a property
consultant and a real estate agent?
• In the sale or purchase of a property, a client needs the services of a
real estate agent. A consultant does not take part in any transactions
and is just there to provide advice or research and analysis. A real
estate consultant can frequently supply information to a customer
that an agent cannot.
18. What is 7 steps of consulting process?
• defining a problem,
• structure problem,
• prioritize issues,
• develop issue analysis and analysis plan,
• conduct analyses,
• synthesis findings,
• develop recommendations.
