SALES ASSOCIATE COURSE

CHAPTER 1
The Real Estate Business
 Potential Income (commission example)
$500,000
x 5% commission
$25,000

Split Equally
Listing Agency $12,500 Selling Agency
(usually) (co-broker)
50/50% Split 70/30% Split

Licensee Agency Licensee Agency

$6,250 $6,250 $8,750 $3,750

A licensee on a 50/50 split can make $150,000

_________ annually by selling
two properties each month.
Copyright Gold Coast Schools
3
Farm Area

A specific portion of a
city that a broker or
sales associate seeks
to become an expert
 The Real Estate Business

Licensees must have expertise

in the following three areas:
 PROPERTY
APPRAISAL FINANCING
INSURANCE
PROPERTY
MANAGEMENT

Real Estate CONSTRUCTION

AND DEVELOPMENT

COUNSELLING Specialization
Many areas of real
estate
BUSINESS
BROKERAGE

COMMERCIAL
INDUSTRIAL SALES RESIDENTIAL SALES OR RENTALS
SALES
AGRICULTURAL
SALES
 Residential Sales
• Four or fewer
residential units (Leasing) Defined
• Vacant land zoned for
four or fewer
residential units

• Agricultural property
of ten or fewer acres
 • Extensive knowledge

• Analyze past & future income

Commercial Sales • Tax consequences
or Leasing
• Includes

• Apartment buildings

• Office buildings

• Shopping Centers
• Involves user/owners not
investors
• Knowledge required
• Government regulations –
land use
• Environment
• Transportation
Industrial Sales
• Labor
• Utilities
or Leasing
 Agricultural Sales
• Large tracts of land
• Large sums of money
• Analyze profitability
• Estimate potential of properties under consideration
 • Listing and sale of
businesses
• Analyze financial
Business Brokerage statements
• Going concern value
• Income, assets,
goodwill
Property Management
• Leasing , Managing ,
Marketing and Overall
Maintenance of property for
others
• Owner’s representative
• Produce the greatest amount
of Net Income over the
longest period of time
• Absentee owner:
• Primary reason
 Counseling
• Professional advice
• Flat fee
• Knowledge and experience
• Alternative investments and strategies
 Fundamental Aspect of
Real Estate
• Estimating the value of
real property
• An art, not a science
• Paid based on time,
Appraising effort and expense
• Not paid on property
value
• Non-biased opinion of
value
• FREAB – Florida Real
Estate Appraisal Board
• Regulates appraisers
• Real Estate licensees
performing appraisals:
• Non-federally related
transaction
Appraising
• USPAP
• Usually prepare Comparative
Market Analysis (CMA)
 Government

Appraisal Buyers

Five parties that may Insurance

be interested in an Companies
appraisal:
Sellers

Mortgage Lenders
Financing
• Lifeblood of real estate sales
• Knowledge of availability and
cost of credit
• More than 90% of all purchases
• Borrower requirements
• Real Estate
licensees if
properly licensed
as mortgage loan
originators or
mortgage bankers
may collect fees
Property Insurance
• Mandatory on most homes
• Need separate license to sell
• Additional Types
• Homeowner warranty
• Flood
Construction and
Development
Dedication:
• Gift of land
• To a government
• For public use
 Custom Home
• Built custom to a buyer’s specifications

Spec Home
Construction and • Built before securing a buyer
Development
Tract Home
• Also speculative, but typically on a
larger scale featuring several models
Professional Organizations

National Association of Realtors (NAR)

• Institute of Real Estate Management (IREM)
• Realtors National Marketing Institute (RNMI)
• Realtors Land Institute (RLI)
• Society of Office REALTORS(SIOR)
• Commercial Investment Real Estate Institute (CIREI)
• American Society of Real Estate Counselors (CRE)
Florida Association of REALTORS® (FAR)
(Doing Business As Florida Realtors)
Largest trade association in Florida
• www.floridarealtors.org
• Real estate forms
• Technology help
• Legal advice (FAR Hotline)
• 407-438-1409
• Licensed REALTORS® only
 • If Broker is a member
• All Sales Associates
must join
• Included in FAR
Local Association • Provides access to
Multiple Listing Service
of REALTORS® (MLS)
• Code of Ethics
enforcement
• Networking
• Education
Government Regulation
Local level
• Planning and Zoning
• Property taxes
• Building and Health Codes
• Building Moratoriums
 State government
• Development of Regional
Impact(DRI)
• Department of
Environmental
Protection(DEP)
Government • Department of Economic
Regulation Opportunity(DEO)

Federal Government
• Operation of Lending
Institutions
• Federal Reserve Monetary
Policy
• Gold Coast provides online homework designed to help you
succeed in this course and pass your state exam
• We STRONGLY recommend that you complete each homework
assignment based on the chapters discussed in class each day
• If you haven’t already, you will be receiving an email containing
your username and a unique password.
• If you do not receive this email, please contact
[email protected]

Homework
Assignments
 Accessing Your
Online Homework

• Log on to www.goldcoastschools.com
• Click the login link at the top
 • We recommend changing your
password from the one in the
email, to something easy to
remember
• Simply click on the “Online
Chapter Reviews” to access your Login to Your
homework assignments Online Homework

• Enter your email address and password provided to you via email
• *If you did not receive an email with subject “Access to your course
homework”, send an email to [email protected] or
contact our Career Counselors at: 1-800-732-9140
Coffee Break
15 Minutes