Section 1 Flashcards
Absentee Owner
A person or entity who owns a piece of real estate but does not live in it. Often the person may reside in another state. They may be a corporation or real estate investment trust (REIT).
Appraisal
The process of estimating the value of real estate.
Appraiser
Professional who has the knowledge and expertise necessary to estimate the value of property.
Broker Price Opinion (BPO)
The estimated value of a property as determined by a real estate broker or other real estate licensee working under the direction of a broker.
Business Opportunity
Involves sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. It involves not only the sale of the property but of the business itself. It may actually be for the sale of a business without the real estate as many businesses operate in locations utilizing a lease.
Comparative Market Analysis (CMA)
An assessment of value that a real estate licensee generally gives when helping a seller determine an appropriate list price. Buyers also request it to assist them in deciding how much to offer on a property. It may be conducted for a fee. They do not need to comply with USPAP standards as it is not an appraisal.
Dedication
The voluntary transfer of private property by its owner to the public for some public use, such as for streets or schools.
Farm Aware (Target Market)
An area/neighborhood picked by a licensee to market to on a very regular basis; thus, cultivating buyers and sellers.
Follow-Up
“Touching” farm area individuals monthly or on a regular basis with mailings, emails, door hangers, etc.
Property Manager
The process of “managing” property that is available for lease. Duties include maintaining and handling all the activities that are centered around the leasing and care of the piece of real estate property managed.
Real Estate Brokerage
A business where a “managing” broker oversees the Broker Associate/Sales Associates that work for the brokerage and provide real estate services to clients for compensation. All clients and commission technically belong to the brokerage and are the responsibility of the broker.
Special Purpose Property
A property that is designed specifically for one type of use. This generally involves a unique design and layout which makes it difficult to use the property for another purpose without a major redesign.
Plat Map
Shows the subdivision of land into lots and/or tracts. Typical annotation includes a boundary description, lot dimensions, directional bearings, street names, lot numbers, tracts, easements, and right-of-way.
Uniform Standards of Professional Appraisal Practice (USPAP)
The standards that must be followed for an appraisal. Their rules regulate how an appraisal is performed and written.
Multiple Listing Service (MLS)
Where information about houses for sale listed by real estate agents are compiled into an online database. The information is shared with other agents through the system.
