Agency listings Flashcards
Exclusive right to sell
Broker gets paid regardless of the procuring cause
Open listing
Seller can have multiple brokers
Broker who is procuring cause gets paid
Net listing
Money received above an beyond a designated amount goes to the broker, illegal in TN
Protection period clause ( safety clause)
Compensated after listing expired if you are procuring cause
Value
What a willing buyer will pay on the open market
Essential elements of value
STUD - scarcity, transferability, utility, demand
Principle of regression
Value of a more expensive home placed in a neighborhood of less expensive homes will drop in value
Principle of progression
Value of less expensive homes will increase when places in a area of more expensive homes
Principle of highest an best use
How much net return you can get by building a property,
If the use in temporary then it’s the interim use
Pottage
When two pieces of land that are adjacent to each other are combined and for one single larger parcel
Appraisal
Estimate of value
Market data approach
Examination of properties sold that are similar in value
Cost approach
How much it would cost to replace the building brand new, better for new building not old
Capitalization approach
Converts income into value, property that will bring in more income increases value
Cap rate
Higher cap rate represents higher risk
