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71 Cards in this Set
- Front
- Back
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Land and Buildings
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real estate
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legal interests associated with the ownership of real estate
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real property
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movable items such as cars, clothing, and books
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personal property
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3 Most Important Aspects about Real Estate?
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Location, Location, Location
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8 Careers in Real Estate?
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1. Salespersons
2. Mortgage Lenders 3. Builders 4. Appraisers 5. Developers 6. Property Managers 7. City Planners 8. Asset Managers |
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Which R.E. Careers require licenses?
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Salespersons, Builders, and Appraisers
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How many levels of licenses for Salespersons?
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2 Levels
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How many levels of licenses for Builders?
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1 Level
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How many levels of licenses for Appraisers?
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4 Levels
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that use, found to be legally permissible, physically possible, and financially feasible, that results in the highest land value
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highest and best use
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4 Steps of determining Highest and Best Use?
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1. Physically possible
2. Legally permissible 3. Financially feasible 4. Maximum profit |
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temporary use of a property until such time that conditions are favorable to convert it to another use intended to be permanent
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interim use
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use of a building in a manner different from the use for which it was originally designed
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adaptive use
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8 Supply Characteristics of R.E.?
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1. Inelastic
2. Property Services 3. Long Gestation 4. Availability of Financing 5. Limited by Location 6. Monopolies 7. Suppy of Land is fixed 8. Infrastructure |
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3 Demand Characteristics of R.E.?
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1. Sufficient income
2. Employment 3. Population |
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Are large and infrequent
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Real Estate transactions
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6 Factors attributed to where cities are located?
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1. Natural Resources
2. Created Environment 3. Labor Force and Wages 4. Educational Facilities 5. Climate 6. Leadership |
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a model of urban growth patterns based on concentric zones surrounding a central business district
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concentric-circle model
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a model of urban growth patterns based on transportation routes
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axial model
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a model of urban growth in which types of development tend to extend outward in wedge-shaped sections from the center of the city
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sector model
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a model of urban growth patterns that emphasizes more than one center of commercial activity
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multiple-nuclei model
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a model of urban growth in which types of development tend to extend outward in wedge-shaped sections from the center of the city
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sector model
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5 Stages of Neighborhood Life Cycle?
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1. Growth
2. Maturity 3. Decline 4. Abandonment 5. Rejuvenation |
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act in your client's best interest at all times
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fiduciary duty
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4 Types of Agents?
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1. Listing
2. Seller's 3. Selling 4. Buyer's |
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Two levels of Broker's License?
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1. Real Estate Salesperson
2. Real Estate Broker |
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4 Different Types of Listings?
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1. Open Listing
2. Exclusive Agency 3. Exclusive Right to Sell 4. Net Listing |
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under your fiduciary duty, you cannot mislead the buyer. this document lists items in the house and asks specific questions about the house
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disclosure statement
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cannot make decisions by yourself as to where they should buy their home
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steering
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cannot use scare tactics to generate listings
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blockbusting
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How are brokers commissioned?
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Based on sale price
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What is a realtor?
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One who has access to the MLS
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a person authorized by a property owner to manage the property on his or her behalf
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property manager
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PGI - (V+C) = EGI - (OP EXP) = NOI
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P.M. compensation
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Rent
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Gross Lease
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Rent + Utilities
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Modified Gross Lease
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Rent + Utilities + Pro-rata maintenance
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Net Lease
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Rent + Utilities + Maintenance + Insurance
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Net, Net Lease
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Rent + Utilities + Maintenance + Insurance + R.E. Taxes
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Net, Net, Net Lease
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a lease for a property used for commercial purposes under which the rental payments are based on some percentage of sales made on the premises
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percentage lease
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2 Rights of Landlord?
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Collect rent and get property back
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Obligation of Landlord?
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Up keep
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2 Rights of Tenant?
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Occupy and quiet enjoyment
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2 Obligations of Tenant?
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Up keep and pay rent
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a company executive charged with management of the firm's real estate facilities and activities
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asset manager
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a long-term lease for vacant land
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ground lease
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an arrangement whereby a property owner sells the property to an investor and immediately leases the property back from the investor
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sale-and-leaseback
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an estimate or opinion of value
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appraisal
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4 Principles of Appraisal?
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1. Anticipation
2. Change 3. Substitution 4. Contribution |
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most probable price property will sell for
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market value
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the worth of a property to a particular investor, based on that investor's personal standards of investment acceptability
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investment value
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an estimate of value for insurance purposes
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insurable value
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the estimated value of a property for tax purposes
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assessed value
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6 Steps to Appraisal Process?
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1. Define the problem
2. Data selection and collection 3. Highest and best use 4. Application of 3 Approaches 5. Reconciliation of 3 Approaches 6. Reporting your conclusion |
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6 Characteristics of Real Estate?
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1. Fixed Location
2. Heterogeneity 3. Interdependence of Land Use 4. Long Life 5. Large Transaction Amounts 6. Long Gestation Period |
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the broker who negotiates the listing agreement with the seller
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listing broker
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a real estate broker who is obligated to represent the best interest of the seller
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seller's agent
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the broker who actually locates a buyer for a property
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selling broker
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a broker who is legally obligated to represent a buyer's interests
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buyer's agent
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a listing agreement in which a broker is entitled to receive a commission only in the event the broker procures a buyer for the property
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open listing
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a listing agreement that guarantees the broker's right to a commission if the property is sold by any licensed real estate broker or salesperson
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exclusive-agency listing
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a listing agreement that guarantees the broker's right to a commission if the property is sold by the seller or any licensed real estate broker or salesperson
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exclusive-right-to-sell listing
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a listing agreement in which the broker is entitled to receive as commission any amount above a base price
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net listing
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laws that protect the rights of certain citizens in housing transactions
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fair housing laws
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a method used to estimate value by comparing the property to other properties that have recently sold for known prices
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sales comparison approach
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a method used to estimate value by implementing the following steps: (1) estimate the value of the site as though it were vacant, (2) estimate the cost to produce the improvements, (3) subtract accrued depreciation, and (4) add site value to the estimated depreciated cost of the improvements
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cost approach
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a method used to estimate value by discounting or capitalizing the expected future income that is expected to accrue to the property owner
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income approach
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value divided by gross rent
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gross rent multiplier
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NOI / CAP. RATE =
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VALUE
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NOI / SALE PRICE =
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Cap. Rate
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3 Types of Depreciation:
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1. Physical
2. Functional Obsolesence 3. Economic/ External |
