Unit 1 Flashcards
Intro to Real Estate Business
Broker
person/ company licensed to buy, sell, exchange or lease real property for others and to charge a fee for these services
Salesperson
employed by or associated with the broker to perform brokerage activities on behalf of/for the broker
Real estate license
has satisfied the requirements of a licensing agency, as authorized by state legislation
appraisal
process of developing an opinion of a property’s market value, based on established methods and the appraisers personal judgement
property manager
person/ company hired to maintain and manage property on behalf of the property owner
financing
business of providing the funds that make real estate sales transactions possible
subdivision
dividing of a single property into smaller parcels
development
involves prep of a site and construction of structures or other improvements
home inspection
a profession that combines a practitioners interest in real estate with skills and training in construction trade
counseling
providing clients with competent independent advice based on sound professional judgement
residential property
single family/ multifamily housing in urban, suburban, or rural areas
commercial property
business property
mixed use property
allows for 2 or more commercial and residential uses in the same building
industrial property
warehouses, factories, power plants, etc
agricultural property
farms, timberland, etc
special purpose property
privately owned or publicly held (i.e. church, schools, parks, etc)
planned unit development (PUD)
each owner owns a unit in a development and has access to shared amenities
condominium
each owner owns a unit and co-owner of common areas
cooperative
each owner owns a share in a corporation that holds title to the property
market
exists when goods can be bought and sold
function: provides a setting in which supply and demand can establish market value
supply
quantity of goods or services that can be sold at a given price
demand
quantity of goods or services that consumers are willing and able to buy at a given price
depreciation
(cost recovery) allows an investor to recover the cost of an income-producing asset through tax deductions of the asset’s useful life
capital gain
difference between the purchase price of property and its net selling price
liquidity
how quickly an asset may be converted to cash
