Unit 1 Flashcards
Real Estate professionals provide expert information in 3 areas:
- Knowledge of property transfer.
- Knowledge of market conditions.
- Knowledge of how to market real estate and businesses.
What are the 5 sales specialties:
- Residential
- Commercial
- Industrial
- Agricultural
- Business
Residential
Residential sales associates need to know the best access routes and locations of schools, shopping and recreation facilities. They must be able to explain property taxes, homestead exemptions, restrictive covenants and approximate utility costs in the area.
Commercial
Real estate professionals that specialize in commercial need expertise regarding income-producing properties, investment analysis and the various techniques for increasing after-tax cash flow.
Industrial
Real estate licensees who provide real estate expertise of industrial real estate must have technical knowledge of the needs of different industries.
Agricultural
Professionals who specialize in the sale of farms and agricultural land must be familiar with the operation of farms and the economic problems associated with the various types of farming.
Businesses
Real estate licensees who engage in the sale, purchase, or lease of businesses are called business brokers. A business opportunity involves the sale or lease of an existing business, including the sale of tangible and intangible assets.
Farm area
Selecting one specific portion of a city and become an expert in that particular portion.
Property management
Professional service conducted by a person or company hired to maintain and manage property on behalf of the property owner.
Absent owner
A property owner who does not reside on the property and who often relies on a professional property manager to manage the investment.
Appraisal
Is the process of developing and communicating an estimate of a property’s value. Appraisers are needed for many types of real estate activities. Lenders most often require the property to be appraised before approving a mortgage loan.
Who regulates state certified and licensed appraisers?
The Florida Real Estate Appraisal Board
Who can appraise federally related transactions?
Only a state certified or licensed appraiser can prepare an appraisal that involves a federally related transaction. (95% of deals are federal related transactions. (All loans) financing is through a federally insured lender making it a federally related transaction.
Are appraisers paid a commission?
No. Appraisers charge a fee based on the time and difficulty of
The appraisal assessment. It would be a conflict of interest for them to be paid a commission.
Can a real estate broker or sales associates appraise real property?
Yes BUT they may not represent themselves as state certified or licensed appraisers unless they hold those licenses and certifications. They may appraise a property for compensation. (CMA)
