Chapter 1 Yellow Text Flashcards Preview

MA RE Licenscure Exam > Chapter 1 Yellow Text > Flashcards

Flashcards in Chapter 1 Yellow Text Deck (22)
Loading flashcards...
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

Demand decreases and supply is same

Prices fall