Transcript Slide 1
Real Estate Professional Assistant Course 1 Classroom Guidelines • • • • • • All phones, beepers and recorders—OFF Periodic breaks Course outline Participatory class Questions encouraged Glad you are here! 2 Meet Your Neighbor! • 2 minutes • Introduce yourself to as many people as you can! • READY • GO! 3 Learning Objectives • Provide clerical support in preparation of kits, contracts, net sheets and MLS data • Identify due dates, deadlines and termination dates in listing agreements and contracts • Organize follow up and support activities 4 Learning Objectives • Identify day-to-day operations of the real estate business. • Recognize terminology used in real estate • Organize procedures for listing and selling real estate • Recognize specific activities performed by licensed and unlicensed REPA’s 5 You Will Learn To: • • • • • • Present yourself professionally Identify high risk situations Provide support Develop systems Be a team player Be successful as a Real Estate Professional Assistant 6 REPA Statistics • • • • 21% of REALTORS® use assistants 48% are unlicensed 50% are employed part-time 57% work exclusively for one REALTOR® 7 Chapter 1 Working in the World of Real Estate 1 8 In This Chapter… 1. Present yourself professionally 2. Learning, communicating and working as a professional 9 Professional Appearance • Represent employer • Dress professionally • To feel professional dress the part • Dress for Success! • How is this lady doing? 10 Learning as a Professional • • • • Learn employer’s routines Learn office routines Write everything down Keep a notebook – Spiral is best – No sticky notes – Good reference 11 Communicating as a Professional • • • • You are on the service end of the line Satisfy person on the other end Patience and tolerance Your professionalism impacts referrals and return business • Sense of humor • Courteous, patient and helpful 12 Working as a Professional • Accurate Phone Messages – Taken correctly and completely – Delivered promptly – Date and time clearly noted – Include a return phone number • Get return number – Look it up yourself if necessary • Promptly return all messages 13 Confidentiality • Respect confidential nature of information • Legal consequences • Repeat NOTHING! Three can keep a secret if two of them are dead. Benjamin Franklin 14 Organization • Keep data up to date • Back up regularly • Have information readily available • Keep files in order • Organize work space 15 Numbers Exercise 16 Honest Answers and Overcoming Rejection “I don’t know but I will find out.” Keep a positive attitude! Be sure to get back to them with the correct answer There is always the next transaction and a new client to serve. 17 Professional Interview • • • • • • First impression Arrive early Be prepared Provide resume Letters of reference Highlight special skills 18 Professional Interview Ask questions: shows you are interested • • • • • • Is this a new position? What computer and software do you use? Why is the position available? Will there be formal job training? What qualities are needed to excel here? If I am extended a job offer, how soon would you like for me to begin? 19 At End of Interview • Thank interviewer for the opportunity • Express your interest in the job • Send a follow-up thank you letter within 24 hours of interview 20 A Real Estate Professional Assistant Reliable Enthusiastic Positive Attitude Always Professional 21 Chapter 2 Understanding the Business of Real Estate 22 In This Chapter… 1. 2. 3. 4. 5. 6. 7. 8. Federal and state regulations Types of licenses Licensed and unlicensed REPA’s Legal issues Transaction participants REALTOR® Professional Associations Multiple Listing Service Code of Ethics & Professional Courtesies 23 State Regulatory Agencies • Services of Real Estate – SALE – PURCHASE – EXCHANGE – AUCTION – LEASING – PROPERTY MANAGEMENT 24 Set Standards • • • • • • Licensing Disciplining Education Training CE for renewal Related services – Appraisers – Time shares 25 Federal Regulatory Agencies • Do not regulate agent licensure • Require disclosures • Lead-based paint 26 Discussion Question • You hold active licenses in New York and New Jersey. • Is it lawful to simultaneously hold licenses in more than one state? • Under federal laws, in what other states may you practice real estate? Real Estate License 27 Licenses BROKER SALESPERSON BROKER SALESPERSON 28 Broker • • • • • • Licensed broker operates an agency Owns company listings Responsible for all staff and salespersons All commissions go through broker All agent gifts go through broker No tipping to unlicensed persons 29 Salesperson • • • • Performs services of real estate Works under supervision of a broker May not operate their own company May manage for a broker 30 Broker-Salesperson • Holds license as a broker • Chooses to work for another broker • Must work as a salesperson only 31 How Agents are Paid • • • • • • All fees are paid to broker No “standard” commissions All commissions are negotiable Usually nothing paid until transaction closes Must be licensed to share in commission Commission, flat fee, referral fee, consulting fee or salary • Accepting commission does not necessarily create agency 32 Gifts • • • • • Pass through broker No referral gifts No tips for referrals Thoughtful note good Bonus’s allowed 33 Group Question Why would a licensee want to work as a Real Estate Professional Assistant? 34 Licensed REPA • License must be active • Perform all services of real estate • Can be of greater assistance to employer 35 Statistics on Personal Assistants 48% 52% Licensed Unlicensed Source: 2003 National Association of REALTORS® Member Profile, (National Association of REALTORS®, 2003). 36 Unlicensed REPA • MAY NOT: – Provide access or show a listed property – Demonstrate property features – Offer subjective comments about property – Negotiate or assist in negotiations – Provide subjective advice – Collect a commission, split, or referral fee 37 Discussion Question 38 Class Exercise • Design the Perfect Work Day 39 Legal Issues • • • • Licensing laws are strictly enforced If REPA is licensed, must be active Must be registered with supervising broker Must complete continuing education requirements • Keep track of license expiration date • Provide reminders to employer 40 Antitrust • Important legal issue in real estate • Easy to violate if not aware • Let’s read ‘Just Another Day at the Office’ 41 Group Question What did the REPA say wrong during this conversation? 42 Sherman Antitrust Law 1. Conspiracy to set prices – REPA implied a conspiracy when she said Tom Williams was the only one with his fee structure and he did not belong to the Board of REALTORS® 2. Conspiracy to boycott a competitor – She said other agents would not show his listings at that commission level. 43 Participants in a R.E. Transaction • Lenders • Mortgage Brokers • Home and Termite Inspectors • Other Inspectors • Attorneys • Closing Agent • Title Company 44 Lenders • Application • Credit Report • Property surveyed, inspected & appraised • Sent to underwriter • Loan Commitment • Loan packet for closing 45 REPA Responsibilities • • • • Track loan progress Time period for loan application Time period for loan commitment receipt Loan NOT approved until receipt of loan commitment 46 Mortgage Brokers • • • • • • • Serves all buyers Special financing requirements Less than perfect credit Shop lenders for best loan package May offer different qualifying benchmarks Buyer may have to pay higher interest May shop for highly qualified buyer 47 Home Inspectors • Before or after contract is signed • Time frames for completion • Contract defines what is to be inspected • Contract defines remedies • Selection by client/customer • Post inspection follow-up 48 Termite Inspectors • Very important in certain parts of country • Deals with more than termites • Wood destroying organisms, carpenter ants, fungus or wood destroying mold • Contract defines remedies • Post inspection follow-up 49 REPA’s Role • Work done on timely basis • Copies of reports to buyer and seller • Confirm work completion • Work done according to contract terms 50 Attorneys • • • • • • Contract preparation and closing Consult on contract terms and language May review contract prepared by an agent After binder, attorney may write contract Title search and title policies May also serve as closing agent 51 Closing Agent • When an attorney is not required • Closing agent arranges for title search, title commitment and title insurance • Does not have to be an attorney • Paralegal is often used • Choice of closing agent is negotiated 52 Title Company • • • • • • Handle real estate closings Conduct title searches Issue title insurance policies Attorneys on staff Agent for the lender Act as closing agent 53 Insurance Agent • • • • Buyer must show proof of insurance Transaction cannot close without it May be difficult to purchase Natural disasters and mold have caused prices to increase 54 National Association of REALTORS® • • • • • • • NAR members adhere to Code of Ethics Unlimited resources Continuous training Largest trade organization in world Legislative and governmental activities Federally registered membership marks Only NAR members called REALTOR® 55 Professional Designations • Through institutes, societies and councils • REBAC offers ABR® and ABRM® 56 State Association of REALTORS® • Education and legislative support • Work closely with state legislators and state administrative divisions • Provide standard forms for listing and contracts 57 Local Association of REALTORS® • Professional, legislative and social activities • Appoint representatives to state and national associations • Raise funds for RPAC • Mediate or arbitrate disputes • Educational opportunities • REPA will track membership due dates 58 Multiple Listing Service • Database of active, expired and sold listings • Provides data for Comparative Market Analysis (CMA) • MLS may be owned by local board • User pays a fee over and above board dues 59 Code of Ethics • • • • • Sets clear ethical practices Working with public or one another NAR members bound by the code REPA’s should be familiar with the code Soliciting listings and advertising property 60 Professional Courtesies • • • • • Pathways to Professionalism Use on a voluntary basis Working with colleagues from other firms Working with all real estate professionals Professional courtesy guidelines 61 Discussion Question • • • • • • • Dick and Jane exploring classifieds See two agents advertising Joe Joseph, REALTOR® John Johnson, licensed salesperson Are both licensed? What is difference between the two? Are both called REALTORS®? 62 Chapter 3 Finding Listings and Clients 63 In This Chapter… 1. 2. 3. 4. 5. 6. 7. 8. Types of Listings Agency Relationships Buyer Representation Client Confidentiality Buyer and Seller Markets Farming Do-Not-Phone, Fax, Email laws, FACT Act Listing Kits 64 Types of Listings Exclusive Right To Sell Greatest Control Exclusive Agency Owner may sell without paying a commission Open Listing Broker selling property gets the commission. Owner may sell without paying a commission. 65 Listing Agreement Facts • To be enforceable, must be in writing • Seller should promptly receive a copy of the listing agreement signed by broker • Verify that person signing is the owner • Specific term • Cannot be automatically renewed • May be for rental or sale of property 66 Agency Relationships • Broker liability – Responsible for actions of all agents in office – Responsible for employees and REPA’s – Liability runs 24/7, 365 days a year • One form of agency for any one listing • Each agent in office bound by type of agency shown on listing agreement • Customer and Client 67 Customer and Client Customer: not represented in transaction You work WITH a customer Client: has representation in transaction You work FOR a client 68 Buyer Representative Agreements • • • • • ABR enhances buyer representation skills Working for buyer’s best interest Home Buyers Kit and marketing brochures Searchable database Buyer representation agreement between client and broker • Retainer may be required 69 Other Forms of Representation Single Agent Represent buyer or seller Never both in same transaction Dual Agent Limited representation Full disclosure Informed consent Transaction Broker Non-representation relationship Designated Agent Appointed by broker to represent buyer 70 Definitions • • • • • • Single Agent Buyer’s Agent Seller’s Agent Transaction Broker Designated Agency Dual Agent 71 Client Confidentiality • • • • • • Listing information Staff meetings Office chatter Previous offers Details of current offer June 1, 2005, federal law requires destruction of all information taken from credit/consumer reports before throwing in garbage 72 Buyer’s or Seller’s Market • Seller’s Market – – – – Few properties High demand Command higher price Command better terms • Influenced by: – New industry – Interest rates • Buyer’s Market – – – – Many properties Low demand Lower price Less desirable terms • Influenced by: – – – – Economic trends Industry closings Interest rates World events (9/11) 73 Farming • Process by which an agent finds properties to list • Specialize within a certain part of town • Known as ‘farm area’ • Small towns, entire town is farm area • Refer business outside farm area 74 Working a Farm Area • • • • • For Sale By Owner Expired Listings Referrals Direct Mail Web sites 75 Web Sites—The Electronic Farm • Tech-savvy agents maintain Web sites designed to generate leads from both buyers and sellers. • keep the content updated • respond to e-mail messages and Webgenerated inquiries • real-time responses (within 24 hours or less) to e-mails 76 Farming Dos and Don’ts • • • • Must you be licensed to make phone calls? NAR Code of Ethics Article 16 Non-solicitation lists You may call: – In response to a direct request – In connection with an existing debt or contract – Prior or existing business relationship 77 Fax, Phone and Email Need permission before calling, faxing, e-mailing 78 Listing Kit • Items to include: – – – – – – – – – Listing agreement CMA Disclosure forms Estimated Net Sheets MLS data input form Property disclosure Sample advertisements NAR’s Code of Ethics References 79 Chapter 4 Listing Agreements 80 In This Chapter… 46 1. 2. 3. 4. 5. 6. 7. Completing a listing agreement Processing the listing MLS Input Verifying data Preparing the listing file Marketing Fair Housing laws and guidelines 81 Key Items in Listing Agreements • • • • • • • Legal names Term of agreement Legal Description of property Personal property to remain Occupancy Price and terms Disclosure of defects 82 Key Items in Listing Agreements • • • • • • • Compensation Broker Protection Period Permissible Use Retained Deposit Cooperation with other Brokers Non-Cooperation Fair Housing Notification 83 Key Items in Listing Agreements • • • • • Code of Ethics Conditional Termination Dispute Resolution Signatures, Dates and Contact Information 84 Processing the Listing Six Steps 1. 2. 3. 4. 5. 6. MLS Input Verify the data Prepare Listing File Marketing Fair Housing Laws Other procedures 85 MLS Input • Enter information from listing appointment • Local rules determine Open Listing access • Exclusive Right to Sell and Exclusive Agency listings are preferred MLS Rules 86 Verify Data • • • • • • Make a printout from MLS system Check for accuracy Simplest error may deter showing Re-check everything Information used for offers/buying decisions If inaccurate, legal claims may be made 87 Verify Data • • • • • 1 2 Always use new data Carefully compare input sheet with printout Avoid exaggeration in remarks section Be extremely accurate Track expiration dates 88 Listing File • • • • • • Signed Listing Agreement Required disclosure forms Contact log Property log Showing log Showing instructions 89 Marketing: For Sale Sign • • • • Yard sign installation Local ordinances Owner permission Keep in good repair 90 Advertising • • • • Write initial ad copy Employer and Broker approval Different media, different layout, text, style License law requirements 91 Fair Housing Laws • Must comply in all areas of real estate – Customers in the office – Properties shown and not shown – Rental property and property for sale – Enforced through lawsuits – Compensatory and punitive damages – Testers 92 Fair Housing Quiz • • • • • • Must a tester be a legitimate buyer? Must a tester always tell the truth? Are adults a protected class? Are married people protected? Are students protected? Are alcoholics currently in rehab protected? 93 Fair Housing = Fresh Corn • • • • • • • • • • F-amilial Status R-ace ES-ex H-andicapped C-olor OR-eligion N-ational Origin EO=Equal Opportunity 94 May NOT Discriminate • • • • Sale or rental of housing or rental units Advertising the sale or rental of housing Financing of housing Provision of real estate brokerage services 95 Equal Professional Service Model 1 2 3 Procedures? Information? Has my customer set the limits? No No No Do I Use Systematic Do I Have Yes Objective Yes 4 Yes Have I offered a variety of choices? No Source: At Home with Diversity, National Association of REALTORS®, 2005 96 Fair Housing Violations • Refuse to sell or rent to anyone in a protected class • Misrepresent housing availability • Steering • Provide different services or facilities • Indicate preferences in advertising • Refuse loan based on protected classes 97 Fair Housing Violations • Different terms or conditions on loan • Denied or imposed different terms on property insurance • Used protected class when appraising • Harassed, coerced, intimidated or interfered with anyone exercising or assisting someone with fair housing rights 98 Can You Ask? • • • • • Do you have a disability? Have you ever used drugs or alcohol? Have you ever suffered a serious illness? Have you ever sold illegal drugs? Have you been in a drug treatment program? • Have you been convicted of the illegal manufacture or distribution of a controlled substance? 99 Fair Housing Advertising In all advertising Describe the property Not the people! 100 Advertisement Quiz Mark the mistakes you find. 101 Presenting the Offer 102 Chapter 5 Showing Property 103 In This Chapter… 1. 2. 3. 4. 5. 6. 7. Showing Instructions Making Appointments Property Tours Lock boxes Open Houses Caravans Property Terminology 104 Showing Instructions • • • • • • Database or spreadsheet Showing Information Well organized Easily accessible Fosters efficiency Update weekly 105 Sample Listing Sheet MLS# Property BR/BTH Location Price F? Lister Showing 123456 119 Park Dr. 2/2.5 160,000 F JQP Vacant Lockbox 987654 2116 Boris Pike 3/3.5 227,000 U BBK Call 1st Instructions 555-1234 Key at front desk 106 Listing Sheet Advantages • • • • • Prepared to make appointments Increased efficiency = repeat calls Answer basic questions If licensed, handle prospect inquiries Answer questions and make appointments 107 Making Appointments • • • • • • • MLS printout Who to call for appointment Office number first Listing agent’s cell or home number Showing instructions Make appointment Give employer written copy of instructions 108 Scheduling Property Tours • • • • • • Map out location Make tour logical Plan lunch break Prepare tour sheet Copy of MLS printout Pick up the keys 109 Lock Boxes • Secure device • Holds keys • Security code updated regularly • Record data – Time – Date – Person • Do not borrow or lend 110 Open Houses • • • • • • • Guest book Weekends or holidays Sign ordinances Owner should leave Eliminate clutter Turn on lights Secure property 111 Caravan Tours • • • • Familiarize agents with new listings Scheduled on weekdays Be present if your listing on tour Previewing for buyers Wednesday’s Caravan Schedule 112 Property Terminology Explore Terminology with Instructor Let computer rest Thank You! 113 Chapter 6 Contract for Sale and Purchase 114 In This Chapter… 1. 2. 3. 4. 5. 6. 7. REPA’s Role Contract Terms Association Approvals Credit Reports Time Frames Right to Rescind Sales Kits 115 REPA’s Role • • • • Track deadlines, dates, tasks Track rescission period Receipt of additional deposit Condominium or homeowner’s approval process • Track deadlines for buyer clients • Track, track, track 116 REPA’s Role • Contracts clean and legible • Words and numbers crystal clear • Sales file has signed copies of all documents and originals where needed • Original, signed copies to all parties of final contract • Photocopies are clear and legible • Have five original signed copies of contract 117 Contract Terminology Examine each term with instructor 118 Property Disclosure • Varies by state • Disclose to the buyer the property condition • Seller must usually disclose any known problems • Important for decision-making on price/terms • Failure to disclose could be misrepresentation • There are federal, state and local disclosures • Forms available for uniform disclosure 119 Association Approvals • Associations make rules, collect maintenance fees and manage complex • May require prior approval for sale • Must work within their rules & procedures • Certificate of Approval may be required • Certificate is filed with deed • Approval may be a contract contingency 120 Association Approvals • • • • • • Fee for processing application May be paid by either buyer or seller Made payable to the association Letters of recommendation Personal interview Complete process as soon as possible 121 Credit Reports • Written permission of applicant REQUIRED • Three national credit reporting companies – Experian – Equifax – Transunion 122 Time Frames • • • • Variations apply Contract to contract/locality to locality Critical to know system that applies Remind parties of obligations based on time frames in contract 123 Right to Rescind • • • • Canceling a contract Period following execution of contract Rescission period varies from state to state REPA is to have all required documents available • Dated acknowledgement from buyer that documents were received • Keep employer posted until conclusion 124 Sales Kits • • • • • Contract or binder form Disclosures requiring seller signatures Seller’s Estimated Net Sheet Standard clauses Blank addendum form 125 Sales Kits • Specific Property – Copy of tax record – Copy of MLS printout – Contact information for the buyer and seller 126 Chapter 7 Working with the Signed Contract 127 In This Chapter… 1. 2. 3. 4. 5. 6. 7. Role of REPA Document the transaction file Seller’s Estimated Net Sheet Tracking milestones Closing statement Buyer’s walk through What happens at closing 128 Role of REPA • Guarantee steps completed with the terms of the contract • Track each task and milestone • Document efforts to meet requirements • Create comprehensive paper trail – Starts with good listing kit – Becomes working transaction file 129 Document the File • Document every action! • Protection against future claims • A comprehensive transaction file should answer any question regarding the transaction • Well-documented transaction file is employer’s best defense 130 Transaction File Contents • Telephone log • Copies of: – – – – – phone messages Correspondence Memos Faxes Emails • Fax cover sheets • Copies of: – Mortgage commitment – Inspection reports – Receipts for work done for buyer or seller – All required paperwork for association approval • Association Certificate of Approval 131 Seller’s Estimated Net Sheet Every offer or counter-offer requires a new Seller’s Estimated Net Sheet. A copy should be kept in the Transaction File whether or not the offer becomes a contract. 132 Tracking Milestones • • • • • • General information Deposits Financing Rescission Inspections Attorneys and Closing Agents • Title insurance commitment • Homeowner or condominium association approval • Preparing for closing • The closing Develop a system to track these milestones! 133 Buyer’s Walk Through • Purpose: Make sure the property is the same as on the day when the contract was signed • Check repairs are completed • Not the time for a property inspection 134 Closing Statement • Known as HUD-1 • Reflects all charges and credits to buyer and seller • Copy should come to employer 24-48 hours before closing • REPA may check for charges or credits • Employer will verify all charges • Signed copies provided at closing 135 What Happens at Closing? • • • • • • • Occurs at title company or attorney’s office All documents are signed Deed is transferred from seller to buyer Buyer receives the keys to the house Buyer signs mortgage papers Transfer taxes, if any are paid Down payment given to closing agent 136 What Happens at Closing? • Check from lender for balance of price given to closing agent • Payments and expenses between buyer and seller are reconciled • Funds are disbursed • Buyer should know the amount needed at closing so he can bring certified check 137 Class Exercise: Estimated Seller’s Net Sheet 138 Class Exercise: Offer and Acceptance 139 Chapter 8 Conclusion 140 In This Chapter… Secrets to Success As a Real Estate Professional Assistant 141 23 Secrets to Success #23. Look and act professional at all times. #22. Perform a wider range of services. #21. If unlicensed, don’t cross the line. #20. Know about Antitrust and Fair Housing. #19. Work congenially. 142 23 Secrets to Success #18. Know local MLS rules. #17. Keep listing kits and sales kits ready. #16. Know the difference between buyer & seller representation. #15. Develop a “rolodex” and keep it handy. #14. Design marketing materials that work! 143 23 Secrets to Success #13. Obtain complete info from call-ins. #12. Type and proofread carefully. #11. Develop listing and showing instruction spreadsheets. #10. Keep a list of deadlines & time frames. 144 145 Congratulations! 146