© 2011 Cengage Learning

Welcome to the first day of your new career!  The California Real Estate Practice textbook is written to meet the needs of the newly licensed real estate agent as well as the experienced agent who is renewing his or her license.  The text chapters offers some ideas that may be useful to you.

© 2011 Cengage Learning Chapter List: 1. Starting Your Real Estate Career 2. Choosing the Right Broker 3. Ethics, Fair Housing, and RESPA 4. Disclosures 5. Lead Generation or Prospecting For Clients and Customers 6. Working With Buyers 7. Writing and Presenting Effective Purchase Contracts 8. Preparing For the Listing Appointment

© 2011 Cengage Learning Chapter List: 9. The Listing Presentation 10. Servicing the Listing 11. Real Estate Financing 12. Escrow and Title Insurance 13. The Life of an Escrow 14. Real Estate Taxation Issues 15. Advertising and Marketing 16. Alternate Real Estate Careers

Starting Your Real Estate Career Chapter 1 © 2011 Cengage Learning

STUDENT LEARNING OUTCOMES Restate the requirements for CRE salesperson license. Recognize the value of ethical conduct. Explain the value of a real estate licensee to consumer. Identify the two things a licensee has to sell. Create a personal business plan. Formulate personal real estate goals.

© 2011 Cengage Learning RATIONALE FOR CHAPTER RATIONALE FOR CHAPTER Real estate brokerage is a highly competitive business.

© 2011 Cengage Learning RATIONALE FOR CHAPTER New licensees need direction as to what it takes to succeed. Many experienced agents need to be reminded of the basic concepts that lead to a successful career.

© 2011 Cengage Learning RATIONALE FOR CHAPTER All agents need to learn or be reminded about the importance of a successful attitude and the importance of creating and following a business plan.

© 2011 Cengage Learning CHAPTER ONE OUTLINE Important Phrases and Terms The important phrases and terms stated at the start of the chapter will be highlighted in bold print throughout the text. Think about and explain each one as you come to it.

© 2011 Cengage Learning CHAPTER ONE OUTLINE BECOMING A REAL ESTATE PROFESSIONAL Think about the role of the real estate agent in a free society. There is on-line testing for compatibility with the real estate agent’s job. Try a Google search. Pride in being a real estate agent.

© 2011 Cengage Learning THE REAL WORLD OF REAL ESTATE The imperfections of real property and people; they play a part in the day-to-day job of the real estate professional. Motivation, buyer and seller knowledge, product differentiation and the quality of the agents all play a part in each transaction.

© 2011 Cengage Learning THE REAL WORLD OF REAL ESTATE Expand your knowledge of the marketplace through the Multiple Listing Service (MLS).

© 2011 Cengage Learning TEAMS & PARTNERSHIPS Defines partnerships. Tells how fragile they can be and how to avoid problems. Discusses the benefits of partnerships. Discusses compatibility issues.

© 2011 Cengage Learning THE IMPORTANCE OF A SUCCESSFUL ATTITUDE A comparison of having a positive or negative attitude and what either can do for or to you.

© 2011 Cengage Learning THE IMPORTANCE OF A SUCCESSFUL ATTITUDE Makes reference to affiliating with a real estate office that has a strong positive environment. Discusses avoiding negative people and that while motivational tapes and CDs are available, a positive attitude must come from within if an agent is to succeed.

© 2011 Cengage Learning THE IMPORTANCE OF A SUCCESSFUL ATTITUDE The home-based office, while very convenient, is not good for the new agent. They need the positive stimulus found in the real estate office.

© 2011 Cengage Learning THE IMPORTANCE OF A SUCCESSFUL ATTITUDE A new agent should ask him or herself:  Are you afraid?  Are you persistent?  Are you self-confident?

© 2011 Cengage Learning THE IMPORTANCE OF A SUCCESSFUL ATTITUDE A new agent should ask him or herself:  Are you enthusiastic?  How do you handle problems?  How do you overcome objections?  How do you handle failure?

© 2011 Cengage Learning OTHER THINGS TO DO Become computer literate.  MLS property search basics.  How to print data out from the MLS system.  How to access and use .  How to use word processing software.  How to create property brochures and flyers for your listings.

© 2011 Cengage Learning OTHER THINGS TO DO Learn office policies and procedures.  Ask for a copy of the now required office policies and procedures manual and completely familiarize yourself with them.  Learn when office meetings and office caravans (property tours) are conducted.  How and when you may take floor time.

© 2011 Cengage Learning OTHER THINGS TO DO  Learn office procedures for taking a listing and writing a purchase contract and what paperwork your office requires.  Study and restudy the listing and purchase agreements. Write sample contracts until you are comfortable with each contract.  Learn the location of and how to operate all of the office equipment and how to make a long-distance call.

© 2011 Cengage Learning PREPARATION IS EVERYTHING (THE BUSINESS PLAN)  Many agents fail because they do not create and follow a business plan.  Agents must quickly learn “client acquisition” techniques and plan to use them daily.  Goal setting is impossible without a detailed business plan.

© 2011 Cengage Learning PLANNING Plan your day – work your plan. Emphasis is made on planning each day the night before so the agent is ready to work his or her plan right away each morning.

© 2011 Cengage Learning PLANNING Planning is the process of putting in writing what must be done in a day’s time and giving each item a priority, then starting to work on the highest priority item.

© 2011 Cengage Learning PLANNING Planning makes you keenly aware of wasted time.

© 2011 Cengage Learning PLANNING Successful agents make better use of their time than unsuccessful ones do.

© 2011 Cengage Learning PLANNING What is your time worth?

© 2011 Cengage Learning PLANNING There are four types of time: A, B, C, and D. A new agent who wants to “get going” should maximize A time and minimize D time. More A time will increase your income and better guarantee your success.

© 2011 Cengage Learning PLANNING Different types of daily planners and how to effectively use them. A new agent should evaluate his or her planner every few days to see how effectively his or her time is being spent. One thing we all share equally is time!

© 2011 Cengage Learning GOAL SETTING Is a barometer of how you are doing on your road to success? Be careful to set realistic goals so as to not become discouraged. Meet with your broker to help.

© 2011 Cengage Learning GOAL SETTING Things to consider when setting goals are: Your motivation. Your financial situation. The support of your family. The marketplace conditions.

© 2011 Cengage Learning GOAL SETTING Goals should be measurable in some way that is meaningful to the agent (i.e. Volume sales, earnings, number of transactions).

© 2011 Cengage Learning GOAL SETTING Goals have more meaning if they are tied to some type of reward when achieved.

© 2011 Cengage Learning GOAL SETTING You stand a better chance of attaining your goals if you share them with someone else and agree to have them hold you accountable.

© 2011 Cengage Learning GOAL SETTING Set goals that you can control and are realistic. The results will come!

© 2011 Cengage Learning OTHER THINGS TO DO Learn the inventory.  Preview property each day to familiarize yourself with the different neighborhoods in your market area.  Look at some of the listings via virtual tours, but visit at least one or two properties in each neighborhood to help learn your way around town.

© 2011 Cengage Learning Be Professional Have a good basic Tax knowledge of the following:  Real property taxes and their benefits to property owners.  Income tax benefits available to homeowners and how they differ from investment property owners.  Income tax benefits available to investment property owners, including tax-deferred exchanges of “like-kind” properties.

© 2011 Cengage Learning OTHER THINGS TO DO Equipment needed:  A daily planner  Business cards  Your automobile  In the car:  Folder or plastic bag  Flashlight  100-foot tape measure  For sale sign

© 2011 Cengage Learning OTHER THINGS TO DO Equipment needed:  Digital camera  Business cards  Financial calculator / amortization schedule  Hammer, screwdriver, nuts and bolts for signs  Current map  Hand-held tape recorder  Cell phone  800 number

© 2011 Cengage Learning OTHER THINGS TO DO About you  Dress appropriately  Be easy to be around. Keep your bad day to yourself and don’t let your ego get the best of you.  Take time to eat right, exercise and stay healthy.