Chapter 1 Flashcards
What is Real Estate Valuation?
Expert knowledge and skills needed to discern property differences and apply that knowledge to property value
What is Real Estate Marketing?
Expert Knowledge and Skills required to market properties efficiently, taking into account changing supply and demand
What is Real Estate Property Transfer?
Expert knowledge and skills required to handle all aspects of a transaction, effecting transfer of ownership rights
What is considered residential under FS 475?
- Improved Residential property of 4 units or less
- Unimproved residential property for 4 units or less
- Agricultural properties of 10 acres or less
What is farming?
Specializing in one type or style of property or in a particular neighborhood
What is a farm area?
Location of the neighborhood or type of property in which a licensee chose to specialize in
What is a Comparative Market Analysis (CMA)?
Valuation performed by a real estate licensee based on recent sales of similar properties in the same neighborhood
What is a Broker Price Opinion (BPO)?
Valuation performed by a real estate licensee that is frequently requested by a lender in a short sale
What is the Multiple Listing Service (MLS)?
Marketing tool used by real estate licensees to market listings locally, statewide, and ever worldwide
What areas can one specialize in with a real estate license?
- Residential
- Commercial
- Industrial
- Agricultural
- Business brokerage
- Property Management
- Counceling
What real estate area does commercial sales or leasing include?
Apartment buildings, office buildings, and shopping centers
What real estate area does industrial sales or leasing include?
Warehouses and manufacturing facilities
What are some common characteristics of agricultural sales?
Large tracts of land and significant sums of money
What knowledge and skills are required for commercial sales and leasing?
- Analyzing past and future potential investment income
- Knowledge of tax laws affecting income
- Tax consequences of buying and selling
What knowledge and skills are required for agricultural sales?
- Analyzing profitability of current uses
- Estimating potential of property under consideration
What knowledge and skills are required for industrial sales and leasing?
- Knowledge of government regulations of land use
- Environmental considerations
- Transportation
- Labor costs
- Utility Charged
What is a Business Brokerage?
Area of real estate specializing in listing and sale of businesses
What is Property Management?
Area of real estate specializing in managing a property for an absentee owner
What knowledge and skills are required for listing and sale of businesses (business brokerage)?
- Estimation of value of the business
- Analysis of financial statements and balance sheets
Why would you need a securities license?
To sell a business involving the transfer of ownership when shares of stock are included
What is a going concern value?
value of a business that is still operating
What are the elements of a business’ value?
- Income
- Tangible Assets
- Intangible Assets
- Goodwill
Which type of license is required in order to manage and be compensated by an HOA or a Condo Association?
Community Association Management (CAM) license
What is Counceling?
Specialization related to the analysis of existing or potential projects, providing advice based on personal judgement
Requires the most knowledge of all the specializations
What knowledge and skills are required for becoming a real estate councelor?
Superior knowledge of real estate investment and alternative investments and strategies
What is the term REALTOR?
A name given to the members of the National Association of REALTORS (NAR)
Which is the largest trade association in Florifa?
Florida Association of REALTORS (FAR), a.k.a. Florida REALTORS
How do you gain access to the Multiple Listing Service (MLS)?
By joining the Local Association of REALTORS
Which designation is awarded by the Institute of Real Estate Management (IREM)?
Certified Property Manager
Which designation is awarded by the Commercial Investment Real Estate Institute (CIRERI)?
Certified Commercial Investment Member (CCIM)
Which areas related to real estate require additional licensing?
- Appraisals
- Financing
- Insurance
- Construction
- Development
What is an appraisal?
Area of specialization that includes the process of estimating an objective opinion of value based on research and data
On what basis are appraisers paid?
- Time
- Effort
- Expense involved in the assignment
What is Uniform Standards of Professional Appraisal Practice (USPAP)
The standards by which all appraisers in federally related transactions must be completed
What are the requirements for appraisals used by federally regulated lenders in federally related transactions?
- Licensed, registered, and certified appraiser per FS 475 Part II
- Compliance with USPAP
What is the Florida Real Estate Appraisal Board (FREAB)?
Entity defined by FS 475 Part II for Appraisers
Which type of insurance is often required by the lender as a condition of the loan?
Homeowners insurance
(which would required a separate insurance license to sell)
What are the phases of development and construction?
- Land acquisition
- Subdivision and development
- Recording of the subdivision plat map
What is dedication?
Transfer of ownership of streets and sidewalks by a developer to the city upon completion of construction of a subdivision
What is custom building?
A type of residential construction which is built according to customer’s specification
What is speculative building? (Building on spec)
Type of residential construction where the land owner builds with the speculation that someone will buy the property
What is tract building?
Type of residential construction where the developer uses model homes to make sales in a tract of land
What is the local government in charge of (city or county)?
Responsible for planning, zoning, real estate taxes, building and health codes, an can impose building moratoriums
What is the federal government in charge of?
Responsible for the national monetary supply and legislation affecting lending institutions
What is the state government in charge of?
Responsible for roads, waterways, and other factors affecting multiple jurisdictions, as well as DRI’s, DEP, and DEO
