© 2011 Cengage Learning
Choosing The Right
Broker
Chapter 2
© 2011 Cengage Learning
RATIONALE FOR CHAPTER
Choosing the right broker to work for is
probably the most important decision a
new licensee makes.
© 2011 Cengage Learning
RATIONALE FOR CHAPTER
All students need to learn or be
reminded that training, guidance, and
mentoring are far more important than
who will pay the highest commission
split.
© 2011 Cengage Learning
RATIONALE FOR CHAPTER
Most agents will pursue a career in
residential real estate, but the students
need to know about what other types of
specialties are available to them.
© 2011 Cengage Learning
RATIONALE FOR CHAPTER
The importance of initial and on-going
training and education is critical to the
success of students.
© 2011 Cengage Learning
Focus of Presentation
•
Differences between single and dual agency.
Duties a new agent performs to obtain new
business
•
•
•
•
•
•
holding Open House
listing For-Sale-By-Owners
neighborhood prospecting (farming)
e-mail and phone contact with a sphere of influence
group
other activities you wish to spend time on.
© 2011 Cengage Learning
Focus of Presentation
residential income property
commercial property
industrial property
mobile-home parks
land and farm brokerage
lot sales
site sales (new construction)
property management
loan brokerage, and
the appraisal field
© 2011 Cengage Learning
Focus of Presentation
Think about comparing each firm’s new
agent and on-going training, the
drawbacks to working for a “selling
broker,” who may even be in direct
competition with them, and the
advantages of a mentor program.
© 2011 Cengage Learning
Focus of Presentation
Carefully consider the importance of
weighing training and support against
the lure of a high commission split
without either.
(100 percent of nothing is nothing)
© 2011 Cengage Learning
Focus of Presentation
Remember, agents with professional
designations generally earn
considerably more money than those
without.
© 2011 Cengage Learning
CHAPTER TWO OUTLINE
2.1. GENERAL BROKERAGE
2.2. CHOOSING THE RIGHT BROKER
2.3. BROKER/SALESPERSON
RELATIONSHIPS
2.4. CONTINUED AND ADVANCED
TRAINING
2.5. PROFESSIONAL DESIGNATIONS
© 2011 Cengage Learning
GENERAL BROKERAGE
•
•
Describe the general real estate
brokerage industry.
Remember, most agents represent
people who want to buy or sell a home.
© 2011 Cengage Learning
GENERAL BROKERAGE
•
Single agency versus dual agency.
© 2011 Cengage Learning
GENERAL BROKERAGE
•
Benefits of the multiple listing service
(MLS) to the agent and the customer.
© 2011 Cengage Learning
GENERAL BROKERAGE
•
Different types of real estate specialties
available to licensees and the knowledge
needed to function effectively in each
one.
© 2011 Cengage Learning
GENERAL BROKERAGE
Residential income property
Commercial property
Industrial property
Mobile-home parks
Land and farm brokerage
lot sales
Site sales
Auction sales
Property management
Leasing
Loan brokerage
Appraisal
© 2011 Cengage Learning
CHOOSING THE RIGHT
BROKER
•
•
Importance of meeting with several
different brokers to get a true picture of
different firms.
Remember the importance of
comparison in determining the right
broker for you.
© 2011 Cengage Learning
CHOOSING THE RIGHT
BROKER
•
Consider the high failure rate of new
licensees.
Main Cause:
•
•
lack of training, supervision and mentoring
(50% first year / 85% by the end of the third year)
© 2011 Cengage Learning
CHOOSING THE RIGHT
BROKER
•
Types of training that is available at top
firms
o
o
o
o
new agent training
role-playing
video and CDs
field training with a mentor or the broker.
© 2011 Cengage Learning
CHOOSING THE RIGHT
BROKER
•
What to look for in an office
•
•
•
•
•
a full time administrative staff
sales manager
broker availability for questions
positive, successful agents
Ask what commission plans are
available?
© 2011 Cengage Learning
CHOOSING THE RIGHT
BROKER
Spend time thinking about the interview
process and what questions to ask.
© 2011 Cengage Learning
BROKER/SALESPERSON
RELATIONSHIPS
It is mandatory for the broker to have a
written contract with each agent in his
or her employ?
© 2011 Cengage Learning
BROKER/SALESPERSON
RELATIONSHIPS
Think about the differences between an
employee and an independent
contractor & the IRS requirements.
(use the comparison chart in Figure 2.3)
© 2011 Cengage Learning
BROKER/SALESPERSON
RELATIONSHIPS
•
•
An employing broker is responsible for
the salespersons actions.
Think about the importance of carrying
automobile insurance & errors and
omissions insurance.
© 2011 Cengage Learning
CONTINUED AND ADVANCED
TRAINING
Think about the importance that
education and training will have on your
success.
© 2011 Cengage Learning
CONTINUED AND ADVANCED
TRAINING
Shadow a successful agent as a way to
quickly learn the ropes.
© 2011 Cengage Learning
CONTINUED AND ADVANCED
TRAINING
•
•
Required continuing education courses
every 4 years.
Classes provide excellent opportunities
to learn more about the real estate
business.
© 2011 Cengage Learning
CONTINUED AND ADVANCED
TRAINING
Benefit of asking seasoned agents
which national speakers and trainers
are the best ones to attend.
© 2011 Cengage Learning
CONTINUED AND ADVANCED
TRAINING
What is “survival training?”
© 2011 Cengage Learning
PROFESSIONAL
DESIGNATIONS
•
•
As agents we sell knowledge, not real estate.
There is no substitute for the type of
knowledge & professional edge that can be
obtained by taking the courses offered by the
National Association of REALTORS®.
© 2011 Cengage Learning
PROFESSIONAL
DESIGNATIONS
Graduate, Realtor’s Institute (GRI)
Certified Residential Brokerage Manager
(CRB)
Certified Residential Specialist (CRS)
Senior Real Estate Specialist (SRES)
Certified Commercial Investment Member
(CCIM)
© 2011 Cengage Learning