Flashcards in 1.7 Deck (18):
The market chiefly determines the ________ of the home.
True or False:
The buyer controls price, product, and terms.
The cap rate is the percent of _______ compared to the total cost of a real estate investment property.
net operating income
______ involves dividing the comparables into two groups, a high price group and a low price group.
When determining value on rental properties, the ________ (GRM) technique can only be used if all the expenses are uniform.
Gross Rent Multiplier
Sellers often _________ their properties because of the fear of being taken advantage of by a shrewd agent or buyer.
Agents should approach the pricing conversation by _______ with the seller's need for a positive conclusion.
True or False:
Agents should AVOID approaching the pricing conversation by recognizing and empathizing with the seller's need for a positive conclusion.
Asking "Do you think a buyer would pay that much more because you re-roofed the house?" is a/an ________ question.
True or False: ALL agents specialize in particular markets, price ranges, or house styles.
_________ Income is the cash remaining after subtracting operating expenses.
The seller controls the three most powerful levers that affect marketability: _________, product and terms.
Conclusions about pricing should be drawn from property _______, not from seller assumptions or your off-handed opinion.
When justifying the market analysis an agent should keep guiding the conversation back to the __________.
facts or comparables
Evaluating investment properties by comparing capitalization rates is known as the ________ approach to establishing value.
Adjusting for amenities (decks, additions, etc.) when preparing comparables for a CMA falls under the appraisal principle of _________.
Evaluating market value combines ________ with science.