Introduction Flashcards
(22 cards)
Can you explain the primary functions of a licensee?
sales and leasing property management real estate appraisal financing counseling
Do you understand the difference between a comparative market analysis and an appraisal?
Appraisal is considered an art rather than a science as the derived estimate of value is the appraiser’s best opinion of value and therefore, two or more appraisers estimating the value on the same property could easily arrive at differing values.
Real estate agents and brokers calculate market value by preparing a CMA while true appraisals are performed by state-licensed or certified appraisers.
Appraisal are much more intricate in nature than a CMA and involve the utilization of the approaches to value as explained in the appraisal. Appraisers may not be compensated in proportion to the value derived due to the inherent conflict of interest that would create. An appraisal for a federally related transaction must be done by a state-licensed or certified appraiser.
Are you familiar with licensing requirements of mortgage bankers and mortgage brokers?
The experts that are license in the world of financing that involves the process of supplying funds to purchasers to make transactions happen in real estate transactions.
Have you been acquainted with the phases of development and construction and can you distinguish among the three categories of residential construction?
Land Acquisition
Subdividing and development
Construction
Real estate activity plays a major role in the nation’s economy in that
real estate is one of largest sources of building wealth.
real estate, and related industries, employ nearly two million Americans every year.
new home sales make a direct contribution to the Gross Domestic Product (GDP).
Most states define the services of real estate brokerage for compensation as all of these
buying and selling. leasing. negotiating and offering exchanging. auctioning appraising
The general public has the right to expect that the licensee in the transaction has knowledge and expertise regarding:
property transfer.
market conditions.
marketing.
PROSPECTING
Is the marketing of yourself in order to attract real estate clients to doing business with you.
FARMING
The prospecting activity that involves a geographical area, staying in contact with all residents of a select neighborhood and providing information and real estate services is
(FSBOs)
“for sale by owners”
SPHERE OF INFLUENCE
Staying in contact with all the people you know.
Property managers are usually expected to
locate the tenant. facilitate the execution of the lease. collect deposits and rents. market the unit for rent assess fair market rent coordinate move in handle repair issues supervise maintenance and care of the property deal with late rents, non-payment of rents, and evictions coordinate move outs
Which of these services in assessing a property’s market value is the most extensive and requires state licensing or certification?
appraisal: the art of estimating a property’s market value
Which of these services is a licensed real estate agent most likely to provide in rendering an opinion of value?
comparative market analysis (CMA): real estate agents and brokers calculate market value by preparing
prepared by a real estate agent when listing property for sale and may show:
current, available listings for sale
pending sales that have not yet closed, however sale prices may not be shared
closed sales which represent reliable sale ata where sale prices are shared
withdrawn listings that were taken off the market for whatever reason
expired listing that did not sell, typically due to being overpriced
offer to a potential seller without cost in anticipation of gaining the seller’s listing
Broker’s Price Opinion (BPO): a more intricate analysis and must be performed under the supervision of the associate’s employing broker.
Lenders and private mortgage insurance companies will commonly request a BPO in settling a foreclosure or pre-foreclosure (short sale) transaction.
Before a builder can begin to construct homes on a subdivided lots, he must first submit and have approved a
SUBDIVISION PLAT MAP: which clearly identifies the “lay of land” identifying individual parcels, lot sizes, streets, utilities, and other information as required for approval.
LAND ACQUISITION
where large parcels of vacant land are located and acquired after assuring that the land is suitable for the builder’s use, is zoned accordingly, and is located in a desirable area for housing. After obtaining the necessary permits, surveys plans for development, etc., the builder proceeds with subdividing and development.
Homes where the subdivision will typically have a few models from which purchasers can choose to have the builder construct on their behalf are called
TRACT HOMES: where the subdivision will typically have a few models from which purchasers can choose to have the builder construct on their behalf.
SPECULATIVE HOMES (“SPEC HOMES”)
where the builder “speculates” what the market will do by completing a small number of homes without buyers under contract
CUSTOM HOMES
where the builder has a buyer under contract to build a specific home that was designed and blueprinted by an architect.
The act of turning over ownership to subdivision amenities such as streets, sidewalks and green areas, is
DEDICATION: builder’s responsibility to assure there are adequate neighborhood provisions for habitability such as streets, lighting, sidewalks, parks, sewers, and such
The provisions are typically dedicated to the local government and will not be sold to the general public.
Do you know the 5 specialties of real estate?
residential commercial industrial agricultural business opportunities
