Chapter 1 Flashcards
Absentee Owner
Person or entity who owns real estate but does not live in it.
May be a corporation or real estate investment trust (REIT)
Appraisal
Process of estimating the value of real estate
Appraiser
Professional with the knowledge and expertise necessary to estimate the value of property
Broker Price Opinion (BPO)
Estimated value of a property as determined by a real estate broker or other real estate licensee working with the guidance of a broker
Business Opportunity
Sale or lease of any product, service, and equipment that will enable the purchaser to begin a business. Involves the sale of the business itself, with or without the real estate, since businesses may lease locations.
Comparative Market Analysis (CMA)
Value assessment conducted by licensee to determine appropriate listing price for a seller or to assist buyers in placing an offer on a property.
May be conducted for a fee
Do not need to comply with USPAP standards
Dedication
Voluntary transfer of private property by its owner to the public for public use
Farm Area
Target Market
Area/neighborhood picked by a licensee to market to on a regular basis
Follow up
Contacting farm area individuals regularly with advertising such as mailings, emails, and door hangers.
Property Management
Process of managing property that is available for lease.
Duties include maintaining and handling activities that focus on leasing and care of property
Real Estate Brokerage
Business where a managing broker oversees Broker Associates and Sales Associates that work for the brokerage while providing real estate services to clients for compensation
Clients and compensation belong to the brokerage and are responsibility of the broker
Special Purpose Property
Property that is designed for one type of use
Generally involves a unique design and layout which makes it difficult to repurpose
Subdivision Purpose Property
Shows the subdivision of land into lots and/or tracts
Typically annotation includes a boundary description, lot dimensions, directional bearings, street names, lot numbers, easements, and right of way
Uniform Standards of Professional Appraisal Practice
USPAP
Standards that must be followed for an appraisal
Multiple Listing Service
MLS
Information about houses for sale listed by real estate agents are compiled into an online database to share between agents
