Unit 1 Intro To RE Flashcards
What is a Broker?
A person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.
RE Salesperson/Agent
Employed by a Broker to preform brokerage activities on behalf of or for the broker.
RE licensee
Person who has satisfied the requirements of a licensing agency or as authorized by a state legislation.
Appraisal
Process of developing an opinion of a property’s market value, based on established methods and the appraiser’s professional judgment. Lenders require a professional appraisal for most transactions.
Appraisers
Must be licensed or certified for federal related transactions but also licensed or certified in many states to in non-federal transactions. www.appraisalinstitute.org
Property Management
A person or company hires to maintain and manage properties on behalf of the property owner. Day-to-day management tasks include finding new tenants, collecting rents, finishing or altering space for tenants, ordering repairs, and generally maintaining the property. Workload depends on the terms of the management agreement. www.boma.org for further details.
Financing
Is the business providing the funds that make real estate transactions possible. Most transactions are financed by a loan that is secured by a mortgage or deed of trust on the property purchased. Financing can be seen through commercial banks, thrifts, and credit unions. Along with mortgage banking and mortgage brokerage companies.
Subdivision
Is the dividing of a single property into smaller parcels. Development involves the construction of improvements that benefit the land. While subdivision and development are normally related, they are independent processes that can occur separately.
Onsite-improvements
Include new homes, and swimming pools which are made in individual parcels.
Offsite-improvements
Water lines and storm sewers that are made on public lands to serve the new development.
Home Inspector
A profession that combines a practitioner’s interest in real estate with skills and training in the construction trades. Many states have recognized the importance of a thorough home inspection by a competent, well-trained inspector by instituting home inspector licensing requirements that include education, training, examinations, and ongoing coursework. www.ashi.org for further details.
Home Inspection
Is when a professional home inspector conducts a thorough visual survey of a property’s structure, systems, and site conditions and prepares an analytical report that is valuable to both purchasers and homeowners. The inspector examines the property from the chimney to the basement, being alert to deterioration, water intrusion, mechanical, or other observable problems. Normally leads to further examinations and fixtures.
Counseling/ RE Counselor
Involves providing clients with competent independent advice based on sound professional judgment. RE counselor helps clients choose among the various alternatives involved in purchasing, using, or investing in a property.
Education
RE education is available to both practitioners and consumers.
Professional Ethics
Moral principles that do two things, they establish standards for integrity and competence.
Code of ethics
A written system of standards for ethical conduct. The code contains statements designed to advise, guide, and regulate behavior. Realtors are expected to subscribe to NAR’s code of ethics.
Six Categories of Real Property
Residential - All property used for single-family or multi-family housing, whether in urban, suburban, or rural areas.
Commercial - Business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities.
Mixed Use - Property that allows for two uses, commercial and residential, in the same building.
Industrial - Warehouses, factories, land in industrial districts, and power plants
Agricultural - Farms, timberland, ranches and orchards
Special Purpose - Privately owned properties, such as places of worship, schools, and cemeteries, as well as publicly held properties, such as schools, municipal service buildings, and parks.
Home Ownership
An investment that may appreciate over the years. Even when a loan is necessary, the interest paid on the loan usually is a deduction from federal income tax. Home ownership can also offer the benefits of pride, security, and a sense of belonging to a community.
Single-family detached house
Most popular housing type and has been adopted in urban areas to take the form of the row house.
Apartment Building
The response to housing demand in crowded urban areas.
Apartment Complex
Made up of a group of apartment buildings with a varying number of units in each building. They may be low-rise or high-rise, and the complex may include parking, security, a clubhouse, a swimming pool, a tennis court, and even a golf course.
Condominium
A popular form of residential ownership, offering the security of owning a property without the care and maintenance responsibilities of having a house. A condominium owner owns an individual unit and shares ownership with other unit owners of common facilities. Management and maintenance of the building’s exteriors are provided by the governing association. Making use of a management company includes being charged monthly. Condos are more commonly seen as apartment-style homes, but they also include single-family and even commercial properties.
Cooperative
Units that share common walls and facilities within a larger building. Owners don’t own the building; instead, they own a share of the corporation that holds title to the real estate. Each shareholder owns a proprietary lease to a specific unit in the building.
Planned Unit Development (PUDs)
These can also be called master-planned communities and may consist entirely of residences, but they can also serve to merge such diverse land uses as housing, recreation, and commercial units into one self-contained development. PUDs are planned under special zoning ordinances. PUD may be a small development of just a few homes or an entire planned city.
Highrise Developments (MUDs)
These can also be called mixed-use developments. It combines office space, stores, theatres, and apartment units into a single vertical community. MUDS are usually self-contained and may offer laundry facilities, restaurants, food stores, beauty parlors, barbershops, swimming pools, and other attractive and convenient features.
Converted-use Properties
They are structures such as factories, warehouses, office buildings, hotels, schools, churches, and others that have been converted to residential use.
Factory-built Housing
They were once often derided mobile homes, the most temporary of residences. Today, what are called manufactured homes are permanent installations built to federal specifications, providing principal residences or vacation homes. The relatively low production cost of assembly-line-type construction in factories. Modular homes or 3D-printed homes also fall into this category.
Market
A place where goods can be bought and sold.
Supply
Supply is the quantity of goods or services that can be sold at a given price.
Demand
Refers to the quantity of goods or services that consumers are willing and able to buy at a given price.
