Real Estate includes 5 different areas of expertise
1.) Details of property transfer
2.) Knowledge of market conditions
3.) Knowledge of how to market real estate or businesses
4.) Knowledge of how to analyze buyers needs
5.) Knowledge of laws that pertain to real estate
Post Contract activities
1.) Credit evaluation
2.) Property Appraisal
3.) Property Survey
Chapter 475, FS
(Residential)
Defines Residential Real Estate as 4 or fewer residential units, vacant land zoned for 4 or few residential units or agricultural property of 10 or few acres.
5 different areas of specialty
1.) Residential
2.) Commercial
3.) Industrial
4.) Agricultural
5.) Businesses
Agricultural property is defined as...
(In Chapter 475, FS) to mean agricultural property of more than 10 acres
Farm Area
Licensees get to know every lot, house, a nd business in their farm areas. Farming involves maintaining data on each property, including when it was built, the sale history, typical marketing time, assessed value, the amount of property taxes and so forth
Property Management
Involves leasing, managing, marketing and maintenance or property. much more involved than a rental agent.
Rental agent
Typically find a tenant for property and collect a fee. Property managers continue to mange the property once a tenant is secured.
USPAP
Uniform Standards of Professional Appraisal Practice
CMA
Comparative Market Analysis. (Real Estate Licensees may help potential sellers determine an asking price by preparing this. They may also prepare CMAs for buyers to help them make informed deductions when offering to purchase real property.)
CMAs are developed by collecting information concerning real estate activity in the area including:
-Recent sales of similar properties
-Properties currently offered for sale
-Recently expired listings
Sales Associates may perform BPOs under what circumstance only?
At the direction and under the control and management of the associates employing broker.
If a sales associate broker associate performs a BPO, how must the compensation be paid?
It should be paid to the broker and not directly to the sales associate or broker associate who prepared the BPO.
The USPAP standards of practice only apply to what?
Appraisal
What are the three general categories of residential construction?
1.) Speculative
2.) Custome Homes
3.) Tract Homes
Do you speculative homes have a buyer in place before constructing the home?
No. Building on speculation involves purchasing one or more lots and constructing a home (or homes) without a buyer in advance.