Final Exam Study Guide Chapters 6, 7, 8, 9, & 10 Real Estate Sales Chapter 6 • Two major elements of the marketing mix • Three primary expectations of buyers • Three steps of total product • Total product • Primary reason why commissions are paid at the end of the sales cycle • Price fluctuations are caused by what? • Packaging • Defining Value • Barter System • Price Elasticity The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change
Final Exam
Study Guide
Chapters 6, 7, 8, 9, & 10
Real Estate Sales
Chapter 6
• Two major elements of the marketing mix
• Three primary expectations of buyers
• Three steps of total product
• Total product
• Primary reason why commissions are paid at the end of the sales cycle
• Price fluctuations are caused by what?
• Packaging
• Defining Value
• Barter System
• Price Elasticity
The Price Elasticity of Demand (commonly known as just price elasticity) measures the rate of response of quantity demanded due to a price change. The formula for the Price Elasticity of Demand (PEoD) is:
PEoD = (% Change in Quantity Demanded)/(% Change in Price)
• How do agents typically react during times of high inflation?
• Things that might happen if sellers overprice their home
• Price Niche
• What effects do overpriced real estate properties have in a certain market segment
Chapter 7
● Explain why prices for services vary from office to office
● Know the 4 tangible attributes of quality
● Explain why expertise and professionalism of a real estate agent will help increase compensation levels
● Understand that estimated time to sell a property should be considered when deciding a compensation percentage
● Know that price listing for real estate properties should reflect what is currently being sold in the market
Chapter 8
● Know the three elements of speed
● Know three of six types of distribution channels
● Know the difference between direct and indirect communication
● Know two ways to remind prospects that you are in business
● Know that the three ways for using the promotional mix is personal selling, advertising, and emotional connection
● Know that personal selling is direct communication
● Know that advertising is indirect communication
● Know how a sales agent can develop a emotional connection with their customer
● Why is important to develop a quality brand as a real estate professional
● Know that positioning is simply the establishment of an agent as a top seller in the market
Chapter 9
● Know that preparation for personal real estate selling involves research, planning, prospecting, and qualifying
● Know that the qualities of a successful salesperson is the ability to solve problems, patience, trust, credibility, motivation, persistence, communication, creativity, and overall knowledge of the real estate market
● Civil Rights Act of 1866
● Americans with Disability Act of 1992
● Know difference between misrepresentation, fraud, and negligence
● Uniformed deceptive trade practices act
Chapter 10
● Know three things that can cause an individual to question the competence of a sales agent even before they meet
● Know three things listed in the notes that help measure how dependable a sales agent is