TEXAS SAE Real Estate Brokerage exam with correct answers

TEXAS SAE Real Estate Brokerage exam
with correct answers

BROKER OWNER RESPONSIBLITIES - ANSWER: ➡ 1. Responsible for every liscnesee holder in the
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brokerage (supervisory)
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2. Training/education
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3. License maintenance
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4. Make sure they don't violate laws (legal)
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5. Profitability of the company (fiscal).
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BROKER OWNER REWARDS - ANSWER: ➡ 1. % of commissions
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2. Ownership control
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3. Training of licensees
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4. Equity Interest
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THREE TYPES OF BROKER OWNERS - ANSWER: ➡ 1. Active brokers who also manage
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2. Managing brokers only
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3. Hire a managing broker
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The projected job growth rate percentage for real estate brokers, and licensees in general, over the
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next several years is ____________ PERCENT - ANSWER: ➡ 7%
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Job growth for real estate licensees is predicted to increase by _________ percent between 2016 and
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2026, which is about the average for most careers. - ANSWER: ➡ 6%
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PREDICTIONS FOR 2020-2021 - ANSWER: ➡ 1. Freddie Mac: A slight (0.5%) leveling off of home
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prices followed by a rise in late 2021
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2. Zillow: House price drop in late 2020, followed by a slow recovery by late summer 2021
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, 3. Zillow: 50-60% decline in home sales from pre-coronavirus levels in 2020, returning to baseline by
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the end of 2021
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4. National Association of REALTORS®: Housing prices are becoming even less affordable
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horizontal expansion - ANSWER: ➡ The growth of your business through existing or similar services
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and methods, or through adding services to an existing clientele.
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The three primary types of horizontal expansion are: - ANSWER: ➡ 1. Geographic: This could mean
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opening new offices in more locations to expand territory, or including the use of various business
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networks and services, such as MLSs or franchising.
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2. Sector: If your firm currently focuses on the residential market, consider expanding to commercial,
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industrial, or agricultural sales.
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3. Service: This includes generalized or specialized services, such as niche marketing or expanded
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agency services.
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Geographic expansion - ANSWER: ➡ Increasing the market area you target for business by either
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opening up a new office or branch in another location or widening the area you currently serve.
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Examples - w w




1. Identify potential growth or redevelopment areas.
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2. Focus marketing and networking efforts on a larger selected market area.
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3. Use a larger, more regional MLS, or use integrated listings with other real estate brokeragesʼ
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offerings.
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4. Use referral or relocation networks.
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5. Add offices in new market areas.
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6. Offer franchise opportunities
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Before considering a sector expansion, a brokerage should: - ANSWER: ➡ 1. Analyze existing
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operations in order to help redirect resources to the most profitable, or potentially most profitable,
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sector(s).
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2. Increase target goals for staff in the more profitable sector(s).
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3. Change or add other sectors to existing service offerings, including sectors like residential,
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commercial, industrial, agricultural, or unimproved land.
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