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Flashcards in 1.7 Deck (18):
0

The market chiefly determines the ________ of the home.

value

1

True or False:
The buyer controls price, product, and terms.

False

2

The cap rate is the percent of _______ compared to the total cost of a real estate investment property.

net operating income

3

______ involves dividing the comparables into two groups, a high price group and a low price group.

Bracketing

4

When determining value on rental properties, the ________ (GRM) technique can only be used if all the expenses are uniform.

Gross Rent Multiplier

5

Sellers often _________ their properties because of the fear of being taken advantage of by a shrewd agent or buyer.

overprice

6

Agents should approach the pricing conversation by _______ with the seller's need for a positive conclusion.

empathizing

7

True or False:
Agents should AVOID approaching the pricing conversation by recognizing and empathizing with the seller's need for a positive conclusion.

False

8

Asking "Do you think a buyer would pay that much more because you re-roofed the house?" is a/an ________ question.

close-ended

9

True or False: ALL agents specialize in particular markets, price ranges, or house styles.

False

10

_________ Income is the cash remaining after subtracting operating expenses.

Net Operating

11

The seller controls the three most powerful levers that affect marketability: _________, product and terms.

Price

12

Conclusions about pricing should be drawn from property _______, not from seller assumptions or your off-handed opinion.

comparisons

13

When justifying the market analysis an agent should keep guiding the conversation back to the __________.

facts or comparables

14

Evaluating investment properties by comparing capitalization rates is known as the ________ approach to establishing value.

income

15

Adjusting for amenities (decks, additions, etc.) when preparing comparables for a CMA falls under the appraisal principle of _________.

contribution

16

Evaluating market value combines ________ with science.

art

17

The gross multiplier technique is only useful when all _______ are uniform.

expenses