The real estate business is composed of many specializations. We usually think of this as the buying and selling of properties. Actually, the real estate business is much broader than that and includes property management, subdivision and development , appraisal, financing, and counseling. Because most licensed professionals are involved in sales and leasing we will be discussing about real estate brokerage.
Real estate brokers provide specialized service for others in return for compensation in the form of commission fee , or other valuable consideration. Today a real estate licensee is payed to handle other people’s properties because the licensee is a professional who provides specialized service and expertise in at least five areas :
~Details of property transfer. A competent real estate practitioner must know the economic and legal intricacies associated with transfers of title , property taxes, financing, and local zoning ordinances. Real estate practitioners must be intimately familiar with real estate purchase and sale contract used in their locale, and they must be able to complete the form competently.
~Knowledge of market conditions. No market is ever completely static. Property values are affected by changing market conditions. Changes in the market conditions are due to changed in income tax laws, building moratoriums , and fluctuations in supply and demand. These price changes must be taken in consideration when preparing a comparative analysis (CMA) for buyers and seller. CMA’s are prepared by real estate licensees to help buyers and sellers to make informed decisions on proving a property .
~Knowledge pf how to market real estate or businesses. To be successful, licensees must know how to market a real estate and /or businesses. The sale presentation most effective when working with a physician who is relocating to a new city may be completely different from the approach used to assist the owner of an expanding gourmet coffee bar in choosing an additional location.
Marketing also includes expertise in locating prospects. For example ,a real estate professional who specializes in finding homes for relocated physicians will develop contacts with the personnel in various local hospitals who work as liaisons with new hospital staff. While there may be exceptions , the bulk of evidence indicates that a property handled by a broker normally will be sold more quickly with less reduction in the desired sale price then if an owner handles the sale without professional assistance.
~Knowledge of how to analyze buyer’s needs. Successful real estate professionals know how to analyze a buyer’s need , wants , and financial capabilities in order to help meet their goals . Good listening skills will allow the real estate professional to help the buyer focus on priorities when considering alternative properties , as well as assisting with finding the right mortgage professional .
~Knowledge of laws that pertain to real estate. It is critical that real estate professionals understand and apply the many laws that impact real estate. For example , Settlement Procedures Act(RESPA), Equal Credit Opportunity Act (ECOA), and the Truth in Landing Act (TILA) are important. Knowledge and compliance with fair housing laws are also extremely important when working with the public. Real estate professionals must also understand and comply with Florida’s real estate licensing laws, including regulations pertaining to brokerage relationships.