Chapter 01 - The Real Estate Business (P17) Flashcards
Expert knowledge and skills needed to discern property differences and apply that knowledge to property value
Real Estate Valuation
Expert knowledge and skills required to handle all aspects of a transaction, effecting transfer of ownership rights
Real Estate Property Transfer
Expert knowledge and skills required to market properties efficiently, taking into account changing supply and demand
Real Estate Marketing
Florida statute definition of residential sales or rentals [F.S. 475.278(5)(a)]
- Improved residential property of 4 units or fewer
- Unimproved residential property of 4 units or fewer
- Agricultural properties of 10 acres or less
Valuation performed by a real estate licensee based on recent sales of similar properties in the same neighborhood
Comparative Market Analysis (CMA)
Specialization in one type or style of property or in a particular neighborhood
Farming
Location of the neighborhood or type of property in which a real estate licensee specializes
Farm Area
Valuation performed by a real estate licensee that is frequently requested by a lender in a short sale
Broker Price Opinion (BPO)
Important marketing tool used by real estate licensees to market listings locally, statewide, and even worldwide
Multiple Listing Service (MLS)
Possible areas of specialization with a real estate license
- Residential
- Commercial
- Industrial
- Agricultural
- Business Brokerage
- Property Management
- Counseling
Area of real estate specialization related to properties such as apartment buildings, office buildings, and shopping centers
Commercial Sales or Leasing
Area of real estate specialization related to properties such as warehouses and manufacturing facilities
Industrial Sales or Leasing
Common characteristics of agricultural sales
Large tracts of land and significant sums of money
Knowledge and skills required for specialization in commercial sales or leasing
Analyzing past and future potential investment income, knowledge of tax laws affecting income and tax consequences of buying and selling
Knowledge and skills required for specialization in agricultural sales
Analyzing profitability of current uses and estimating potential of property under consideration
Area of real estate specialization related to the listing and sale of a business
Business Brokerage (or Business Opportunities)
Knowledge and skills required for specialization in industrial sales or leasing
Knowledge of government regulations of land use, environmental considerations, transportation, labor costs, and utility charges
Term that refers to the value of a business
Going Concern Value
Area of real estate specialization related to the management of property for absentee owners
Property Management
Knowledge and skills required for specialization in the listing and sale of a business (business brokerage)
Estimation of the value of the business, analysis of financial statements and balance sheets
Additional requirement for sale of a business involving the transfer of ownership if shares of stock are included
Securities license
Elements of a business’ value
Income, Tangible and Intangible Assets, and Goodwill
Type of license required to manage and be compensated by a HOA or Condominium Association
Community Association Management (CAM) license
Area of real estate specialization related to the analysis of existing or potential projects, providing advice based on personal judgement
Counseling
Area of real estate specialization requiring the greatest level of knowledge and experience
Counseling
Knowledge and skills required for specialization as a real estate counselor
Superior knowledge of real estate investment and alternative investments and strategies
Name for members of the National Association of REALTORS (NAR)
Realtors
The largest trade association in the state of Florida
Florida Association of REALTORS (FAR) (FAR does business as Florida REALTORS)
Condition under which a licensee may refer to themselves as a REALTOR
If the licensee is a member of the National Association of REALTORS (NAR)
Method for gaining access to the Multiple Listing Service (MLS)
By joining the Local Association of REALTORS
Designation awarded by the Institute of Real Estate Management
Certified Property Manager
Designation awarded by the Commercial Investment Real Estate Institute (CIREI)
Certified Commercial Investment Member (CCIM)
The area of specialization that includes the process of estimating an objective opinion of value based on research and data
Appraisal
Areas of specialty related to real estate that require additional licensing
Appraisal, Financing, Insurance, Construction and Development
The basis on which appraiser fees are paid
Time, effort, and expense involved in the assignment (not the property value)
Standard by which all appraisals in federally related transactions must be completed
Uniform Standards of Professional Appraisal Practice (USPAP)
Requirements for appraisals utilized by federally regulated lenders in federally related transactions
Requires:
* Licensed, registered, and certified appraiser per F.S. 475, Part II
* Compliance with USPAP
Entity defined by F.S. 475, Part 2 for Appraisers
Florida Real Estate Appraisal Board (FREAB)
Type of insurance often required by the lender as a condition of the loan
Homeowners’ insurance, which requires a separate insurance license to sell
Phases of development and construction
- Land Acquisition
- Subdividing and development
- Recording of the subdivision plat map
Term that refers to the transfer of ownership of streets and sidewalks by a developer to the city or county upon completion of construction of a subdivision
Dedication
Type of residential construction that is built according to the customer’s specifications
Custom Building
Type of residential construction that is built by a contractor on his or her own land before securing a buyer with the hope of selling the finished structure
Speculative Building (“building on spec”)
Type of residential construction where the developer utilizes model homes to make sales
Tract Building
The level of government responsible for planning, zoning, real estate taxes, building and health codes, and building moratoriums
Local Government (City or County)
The level of government responsible for the national monetary supply and legislation affecting lending and institutions
Federal Government
The level of government responsible for roads, waterways, and other factors affecting multiple jurisdictions, as well as DRIs, DEP, and DEO
State Government
