Unit 1: The Real Estate Business

Question 1

The term “Follow-Up” refers to:

A. returning calls in a timely manner.
B. completing instructions given by one’s broker.
C. following through on listing calls made to “for sale by owners”.
D. what a sales associate does for buyers & sellers after the sale.

Answer 1

D. what sales associate does for buyers & sellers after the sale.

Sales associates often contact buyers & sellers within a reasonable time after the title closing. One of the best ways to ensure satisfied buyers and sellers is through “Follow-up”. The follow-up is important to all aspects of real estate sales because it results in a good reputation, future referrals, and word-of-mouth advertising.

Question 2

Appraisers are paid compensation based on:

A. Their love of money.
B. A commission fee percentage of the value of the property.
C. Custom dictates the method of compensation.
D. A fee based on the time & difficulty of the appraisal assignment.

Answer 2

D. A fee based on the time & difficulty of the appraisal assignment.

Appraisers are not paid a commission to reduce the possibility of a conflict of interest.

Question 3

What information is used by licensees to prepare a CMA?

A. Property Tax Evaluation
B. Similar Properties that are actively listed, recently sold & recently expired listings.
C. What the seller or buyer tells them depending on who the CMA is for.
D. Non of the above.

Answer 3

B. Similar Properties that are actively listed, recently sold & recently expired listings.

Similar Properties in close proximity, with the least amount of adjustments from sold, expired, and active listings.

Question 4

Types of Residential Construction are?

A. Custom Homes
B. Speculative Homes
C. Tract Homes
D. All of the above

Answer 4

D. All of the above.

Custom Homes, Speculative Homes &Tract Homes.

Question 5

A builder constructs homes under contract with a buyer often using building plans provided by architects or buyers is what type of residential construction?

A. Speculative
B. Tract
C. Custom
D. Build and they will come

Answer 5

C. Custom

Question 6

Building on _____________ involves purchasing one or more lots and constructing a home or homes without a buyer in advance of construction. (no presale)

A. Solid Ground
B. Speculation
C. Subdivisions
D. Permits

Answer 6

B. Speculation

Question 7

Tract homes are a type of speculative building. A new subdivision will typically feature several _________ homes. Buyers select a floor plan from the ________ and a lot on which to build in the new subdivision.

A. Custom, Developer
B. Framed-up, Frames
C. Agent on Duty, Books on the Table
D. Model, Models

Answer 7

D. Model, Models

Question 8

The five major sales specialities do NOT include

A. Agricultural
B. Special Use
C. Commerical
D. Businesses

Answer 8

B. Special Use

The five major sales specialties are;

Residential
Commerical
Industrial
Agricultural
Businesses

Question 9

In Florida, an active current real estate license is required to sell or lease ________ opportunities.

A. CAM
B. Appraisal
C. Business
D. Non of the above

Answer 9

C. Business

In order to sell or lease Business Opportunities in the state of Florida an active current real estate license is required. There is a presumption in Florida law that businesses will have some sort of real property involved, either land with physical improvements (such as a building) or a long-term lease.