Industry Flashcards
What are the different types of property
Residential
Commercial
Industrial
Agricultural
Business opportunity
Special purpose
What is residential property
Family homes single two quad or
Vacant land zoned for four units or less
Farm/agriculture residential less than 10 acres
What is commercial property
Income producing property such as retail center or apartment complex of more than four units.
Professional must be able to convey to their clients information about how to produce income and create after-tax cash flow
What is industrial
Manufacturers or distributors such as factory or warehouse
Sites in industrial parks or subdivisions, redeveloped industrial parcels in central areas and undeveloped industrial acreage
What is agricultural property
Farm or ranch land of more than 10 acres
What is business opportunity
Investor purchases and income producing business
Maybe real estate along with the business or just the business within least space
Knowledge of business practices, specific business loans, and the characteristics of valuation as they apply to the business is necessary
What is special purchase property
Schools, churches, nursing homes, post office is and hospital
Districts look at combination of land and improvements with highest and best use in mind
What are the types of maintenance a property manager needs to be familiar with
Preventive such as caulking windows changing filters
Routine such as lawn mowing
Repair such as broken water heater
Construction such as total remodel or addition
What is the summary of the property manager’s role
Preserve the owners investment.
Maximize the owners returns
What is it called when a real estate professional specializes in a certain area
Farming
Where is the specific role of the property manager described
In the property manager agreement
How big is the real estate industry versus the economy
25%
What is it called when an individual sets up real property for public use such as streets, parks, schools
Dedication
What are the three types of homes
Spec
Tract
Custom
What are the three methods to value a home
Appraisal
Broker price opinion
Competitive market analysis
What is the organization which regulates
Uspap
Uniform standards of professional appraisal practice
What types of situations require an appraisal
Loans, capital gains, divorces
How does the broker come up with the broker price opinion
Based on properties recently sold in the market
How is a CMA created
A competitive market analysis uses
- recent home sales
- homes currently on the market
- Homes that were listed but did not sell
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What are the rules for doing a
Use current information preferably one-year-old ass
Use the same neighborhood, model and type of home
Use at least three comparables
What is it called when you’re guessing the possible days a house will be on the market
Absorption analysis
What information goes into creating an absorption analysis
Current properties on market an average days on market
What are the four stages of large land development
Land acquisition
Subdividing and development
Subdivision plat map and recording
Construction
What is the term for buyer beware
Caveat emptor
What is an arms length transaction
Both sides informed and knowledgeable about what they’re buying and selling
Equal footing
Each own self interest
