Unit 1 Overview Flashcards
Brokerage
Brings all people together in a real estate transaction
Broker
Company or person license to buy sell and lease property for owners and charge a fee
Also the point of contact for two or more people in negotiating selling purchasing in renting
Sales associate
Satisfy the requirements of licensing agent by state mandated guidelines
Appraisal
The process of developing an opinion on properties market value, based on establish methods and judgment
Appraisal requirements
Lenders require professional appraiser for most transactions. Must have detail knowledge of methods and valuation, Federal and state certifications.
Appraisal Institute
Largest Association of real estate appraisers
Property management
Person or company hired to maintain and manage property on behalf of a property owner
Property management responsibilities
Basic responsibility to protect investment and maximize returns
Property management requirements
Depending on size and scope real estate or property management license may be required
Property management advantages
Owner relieved of day-to-day management tasks, such as finding new tenants, collecting rent, finishing our altering spaces, ordering repairs in general maintaining property
Building owners and managers association
Tools for owners and managers
Financing
The business of providing the funds that make real estate transactions possible
Typical financing options
Mostly financed by loan secured by a mortgage, or a deed of trust on the purchase property
Individuals involved in financing
Commercial banks, thrift including savings associations, credit unions, and mortgage banking and mortgage brokerage company’s
Subdivision
Dividing of a single property into smaller parcels
Development
Construction of improvements that benefit the land. Can be on site or offsite
On site development examples
New homes, swimming pools on individual parcels
Offsite development examples
Waterlines sewers etc. on public lands
Home inspector
Conducts thorough visual survey of property structure, systems, and site conditions, and prepares an analytical report valued by the purchaser and the owner
Home inspection
Combines real estate and construction
Home inspector requirements
Education, training, exams, ongoing coursework
Caveat emptor
Buyer beware, especially rely on inspection report to make determination
Home inspector organizations
American Society of home inspectors (ASHI) and national Association of home inspectors (NAHI)
Counseling
Providing clients with competent independent advice based on professional judgment.
