Unit 1 - The Real Estate Business Flashcards
Absentee Owner
An absentee owner is an individual or corporation that legally owns a particular property without actually occupying it or actively managing it. The term absentee owner is intended to distinguish between property owners that are hands-on with their investment versus those who are largely hands off.
Appraisal
The process of developing an opinion of value, for real property. Real estate transactions often require appraisals because they occur infrequently and every property is unique, unlike corporate stocks, which are traded daily and are identical.
Appraiser
The role of the appraiser is to provide objective, impartial, and unbiased opinions about the value of real property—providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real estate.
Broker’s Price Opinion (BPO)
A broker’s price opinion is a broker’s or licensed real estate professional’s opinion of the value of a property. Like a comparative market analysis (CMA), the broker uses comparable properties (often referred to as comps) to determine the likely value, which is provided in a report.
Business Broker
Licensees who specialize in the buying, selling or leasing of businesses for a commission. They value the businesses, market them and represent the buyer, seller, lessor or lessee.
Business Opportunity
The sale, lease, or exchange of any business that includes an interest in real estate.
Community Association Manager (CAM)
Individuals who hold CAM licenses and manage communities of 10 units or more and/or with budgets in excess of $100k.
Comparative Market Analysis (CMA)
A comparative market analysis (CMA) is an estimate of a home’s value based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and, less commonly, to help buyers make competitive offers.
Dedication
A donation of real property to a government for a public purpose.
Farm Area
A term to indicate either a geographical area or a group of people from which to solicit real estate business and which a real estate professional devotes special attention and study.
Follow-up
What a sales associate does after a sale to maintain customer contact and goodwill.
Multiple Listing Service (MLS)
A database established by cooperating real estate brokers to provide data about properties for sale. An MLS allows brokers to see one another’s listings of properties for sale with the goal of connecting homebuyers to sellers. Under this arrangement, both the listing and selling broker benefit by consolidating and sharing information, and by sharing commissions.
Property Management
Property management is the overseeing of residential, commercial and/or industrial real estate, including apartments, detached houses, condominium units, and shopping centers. It typically involves the managing of property that is owned by another party or entity.
Property Manager
A property manager is an individual or company that is hired to oversee the day-to-day operations of a unit of real estate. Property owners and real estate investors typically hire property managers when they are unwilling or unable to manage the properties themselves.
Real Estate Brokerage
A component of the real estate business that specializes in bringing buyers and sellers together for the purpose of transacting real estate deals.
Subdivision Plat Map
A plan of a tract of land subdivided into lots and showing required or planned amenities
