Chapter 1 - Intro to RE Flashcards
What should RE licensees have knowledge and expertise in?
1) Property transfers - including preparation and explanation of contract, property disclosures, assisting with financing, and working through close of escrow
2) Market conditions - values, interest rates, buyers/sellers market, etc.
3) Knowledge of RE marketing
What is prospecting?
What is farming?
Marketing of yourself in order to attract RE clients
Staying in contact with all residents of a geographical area by providing info and RE services
What are the primary functions of a RE licensee?
1) Sales and leasing
2) Property management
3) RE appraisals
4) Financing
5) Counseling
What are the five major sales specialties under the function of sales and leasing?
- Residential - 4 or fewer residential units
- Commercial - income producing properties; such as multi-family dwellings, retail centers, etc.
- Industrial
- Agricultural
- Business opportunities - sale or leasing of existing businesses
What are the services of RE brokerage?
Buying, selling, leasing, exchanging, negotiating, offering, auctioning, and appraising for another person, for compensation
Are property managers required to handle repair issues?
They should supervise maintenance and take care of property, but do not do the work themselves
What is an appraisal?
The art of estimating a property’s market value. Neither a CMA or BPO are appraisals
What is a Comparative Market Analysis (CMA)?
RE marketing analysis done by agent (not an appraisal). May show:
- Current available listings for sale
- Pending sales that have not yet closed (although sales prices may not be shared)
- Closed sales
- Withdrawn listings
- Expired listings
What is a broker’s price opinion (BPO)?
A process more intricate than a CMA that is done under the supervision of the agents broker
What are the elements of development and construction?
-Land acquisition
-Subdividing and development - most municipalities require a developer to file a subdivision plat map which identifies parcels, lot sizes, streets, utilities, etc.
-Construction - homes may be:
-Spec - builder “speculates” what market will
do and builds homes without buyers under
contract
-Tract - few models for buyers to choose from
-Custom - builder under contract to build a
specific home
What does the National Association of Realtors (NAR) give you?
Membership to be a Realtor
What is the MLS and what does it give you access to?
The Multiple Listing Service - access to data on member broker listings. Includes educational offerings including special designations for certain programs, assistance in buyer-to-broker disputes, transaction forms, and management of the MLS
