Flashcards in Chapter 1 Yellow Text Deck (22)
Real Estate Brokerage
the business of bringing people together in a r/e transaction.
a licensed R/E professional acting as a point of contact between two or more people in negotiating the sale, rental, or purchase of a property.
R/E Salesperson (sales associate)
person who conducts brokerage activites on behalf of a broker.
The process of developing an opinion of a property's value (typically Market value) based on established methods and an appraiser's professional judgement. Must be licensed and certification.
caring for a property for a properties
owner. Scope of work can vary.
protect the owner's investment while maximizing the owner's financial return.
contract that lays out the agreement between the property manager and the owner of a property
the business of providing the funds that make R/E transactions possible through loans secured by a mortgage or deed of trust on the property, with funding provided by commercial banks, thrifts, credit unions, mortgage bankers, and mortgage brokerage companies
splitting a singel property into smaller parcels
constructing improvements on the land
preformed by a certified Home Inspector will show results of a through survey of observable property conditions.
independent advice based on sound professional judgment regarding how to buy, sell or invest in property.
residential, commercial, mixed use, industrial, agricultural and special purpose. All can be privately or publicly held.
When supply increases relative to demand priced go down. when Demand increases relative to supply, prices go up!
Uniqueness and Immobility
influences the supply and demand of a R/E Market
Factors affecting the supply side of R/E
Labor force availability
Government controls ( environmental restrictions, land use policies, building codes, zoning)
Monetary policy that impacts interest rates
Factors affecting the Demand side of R/E
renders a professional opinion of a property's market value based on established methods and using trained judgement.
When the supply of a commodity increases the price
tends to drop
Specializations within R/E industry
Property management, appraisal, financing development, counseling, staging, rehabbing, flipping
a R/E licensee and a member of the National Association of REALTORS (NAR)