Flashcards in Chapter 1 Yellow Text Deck (22)
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1
Real Estate Brokerage
the business of bringing people together in a r/e transaction.
2
R/E Broker
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.
3
R/E Salesperson (sales associate)
person who conducts brokerage activites on behalf of a broker.
4
Appraisal
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.
5
Property management
caring for a property for a properties
owner. Scope of work can vary.
6
Property Manager
protect the owner's investment while maximizing the owner's financial return.
7
Management agreement
contract that lays out the agreement between the property manager and the owner of a property
8
Financing
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
9
Subdividison
splitting a singel property into smaller parcels
10
Development
constructing improvements on the land
11
Home Inspection
preformed by a certified Home Inspector will show results of a through survey of observable property conditions.
12
R/E Counseling
independent advice based on sound professional judgment regarding how to buy, sell or invest in property.
13
Real Property
residential, commercial, mixed use, industrial, agricultural and special purpose. All can be privately or publicly held.
14
Supply
When supply increases relative to demand priced go down. when Demand increases relative to supply, prices go up!
15
Uniqueness and Immobility
influences the supply and demand of a R/E Market
16
Factors affecting the supply side of R/E
Labor force availability
Construction
Material costs
Government controls ( environmental restrictions, land use policies, building codes, zoning)
Monetary policy that impacts interest rates
Money supply
17
Factors affecting the Demand side of R/E
Population
Demographics
Employment
Wage levels
18
R/E Appraiser
renders a professional opinion of a property's market value based on established methods and using trained judgement.
19
When the supply of a commodity increases the price
tends to drop
20
Specializations within R/E industry
Property management, appraisal, financing development, counseling, staging, rehabbing, flipping
21
REALTOR
a R/E licensee and a member of the National Association of REALTORS (NAR)
22
