Chapter 1 - The Real Estate Business

Broker

A professional who provides expert knowledge to members of the public in the performance of specified services of real estate.

Valuation (Comparative Market Analysis)

a value estimate based on recent sales of similar property in the same neighborhood.
(Real estate professionals are expected to have a basic knowledge of? this.)

Marketing

know how and where to market.
(Real estate professionals are expected to have a basic knowledge of? this.)

Property Number

real estate agents learn tall about how to successfully complete a sale.
(Real estate professionals are expected to have a basic knowledge of? this.)

Specialization in Real Estate Profession - Overview

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Residential Sales

According to Florida Statute (F.S.) 475 a residential transaction is defined as:
1. improved property of 4 units or less
2. unimproved property intended for 4 units or less
3. Agricultural properties of 10 acres or less
4. leases with options to purchase

Farming (see Residential Sales)

concentration on one type of style of property or on one particular neighborhood.

Commercial Sales

- must be capable of analyzing / future of potential income derived from investment property.
- potential commercial properties: apartment buildings, office buildings, and shopping centers.
- must have a basic knowledge of tax law (affect income earned fr

Industrial Sales

-involves users/owners, rather than investors.
-seek to locate properties that meet the future owner's requirements.
-knowledge of: government regulations of land use, environmental considerations, transportation, labor costs, and utility charges.

Agricultural Sales

knowledge of: large tracts of land and significant sums of money.
must be able to: analyze the profitability of current agricultural uses / estimate the potential properties under consideration.

Business Brokerage

- must be able to estimate the value of a business being offered for sale or purchase.
- Valuing: an analysis of financial statements and balance sheets
- must have a securities license if the sale of business involves the transfer of ownership of shares

Going Concern Value (see Business Brokerage)

includes the income, tangible and intangible assets, and goodwill, the value of real estate property.

Property Management

this service over the years has increased due to a recent trend in absentee ownership.
they function to protect the owner's investment while maximizing the profitability of the investment for the owner.
- compensation is based on a percentage of the rents

Absentee Owner (see Property Management)

owners who buy income property as investment and depend on professionals to manage them.

Rental Agent (see Property Management)

- finds tenants
- collects a fee for the service
- usually does not manage the property once the tenant has been located.

Counseling

provide professional advice to members of the public based on their personal judgement.
- compensated on a flat fee regardless of whether or not the advice is used.
- specialized service and requires a great level of knowledge and experience than any othe

Real Estate Related Services - Overview

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Appraising

the process of developing an opinion of value of real property. An appraiser conducts an independent, impartial, and objective analysis based on research and data pertaining to the value of the specified real property.

Financing

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Property Insurance

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Construction and Development

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Professional Organizations - Overview

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