CH1: Real Estate Business Flashcards
“REAL ESTATE BROKER”
A person or company licensed to buy, sell, exchange, or lease real property for others for compensation.
“REAL ESTATE SALESPERSON (Sales Associate)”
A person that conducts brokerage activities on behalf of a broker.
“APPRAISAL”
The process of developing an opinion of a property’s value based on an appraisers professional judgment and established methods.
“PROPERTY MANAGEMENT”
Conducted by a property manager
“PROPERTY MANAGER”
A person or company hired to maintain and manage property on behalf of the property owner.
“MANAGEMENT AGREEMENT”
The basic responsibility of the property manager to protect the owners investment while maximizing the owners financial return.
“FINANCING”
The business of providing the funds that make real estate transactions possible through loans secured by a mortgage or deed of trust on the property. (Banks, credit unions, mortgage banker, etc.)
“SUBDIVISION & DEVELOPMENT”
Splitting a single property into smaller parcels ( subdividing) and constructing improvements on the land (development).
“HOME INSPECTION”
Having a licensed inspector to scrutinize the home for an inspection report that will show results of a thorough survey of observable property conditions. (*A must for Homeowners/Purchasers)
“REAL ESTATE COUNSELING”
Independent advice based on sound professional judgment regarding how to buy, sell, or invest in property.
TYPES OF REAL ESTATE PROPERTY
- Residential
- Commercial
- Mixed Use
- Industrial
- Agricultural
- Special Purpose
“SUPPLY & DEMAND”
When the supply increases relative to demand, prices go down; when demand increases relative to supply, prices go up.
Factors Affecting “SUPPLY” in Real Estate:
- Labor force availability
- Construction/Material Costs
- Government Controls (building codes, zoning, land use policies)
- Monetary Policy
Factors Affecting “DEMAND” in Real Estate:
- Population
- Demographics
- Employment
- Wage Levels
“REAL ESTATE BROKERAGE”
The business of bringing people together in a real estate transaction conducted by a real estate broker.
