Chapter 1: The Real Estate Business

Owner of property who does not occupy said property

leasing, maintaining, managing, & marketing property for others

An opinion of value based on factual analysis-- Estimation of value by disinterested parties of suitable qualifications.

Real Estate Agents may not present themselves as appraisers unless licensed

Appraisal must follow USPAP Guidelines

Marketing tool that is prepared for potential buyer or seller based on recent sales of similar properties

May not be referred to or represented as an apprasial

Designation indicating an extremely high standard and knowledge

advising individuals & firms regarding the purchase & use of Real Estate investments

Giving (gift) of private property for public use and the acceptance from proper public authority

Limitations on the use of a property placed in the conveyance of a deed by grantor which binds all future owners

One portion of the city in which you become an expert

Farming -- maintaining data on each property within a specific section

• 1. Prospecting Sellers & Listing Properties
• 2. Prospecting Buyers
• 3. Buyer Qualification, Sale Presentation & Negotiation
• 4. Sale Closing
• 5. Loan Application
• 6. Post Contract Requirements
• 7. Loan Approval and Title Search
• 8. Title Closing
• 9. Deed & Mortgage are Recorded
• 10. Follow up

• Residential
• Commercial
• Industrial
• Agricultural
• Businesses

• 4 or fewer residential units
• vacant land zoned for residential
• Agricultural property of 10 or fewer acres

Be able to explain: Property taxes; homestead exemption; restrictive covenants; approx utility costs

Improved residential prop of 4 or more units or income producing property

Be able to explain: investment analysis; tech for increasing after tax cash flow

Sites in industial parks or subdivisions or industrial acreage

Be able to explain: technical needs of different industries

Land which is zoned for agriculture-- used for growing agricultural products or raising livestock

must be 10 or more acres

Be able to explain: Operations and economic problems of farms an various types of farming ; federal farming programs

Business Brokers/ Business opportunity Brokerage

Licensee that engages in the sale, purchase or lease of businesses , including sale of tangible and intangible assets

• Land Acquisition
• Subdividing & Development
• Construction

Developers and builders acquire raw land & prep site for construction

Subdividing - process of converting parcels of land into smaller units or lots

Development- process of improving raw land so it can be put to productive use

Engineers plan for land used super imposed on a map of the land to be developed.

Refer to entire subdivision & impose limitations on use of land

• Spec homes- purchasing land & building a home w/o a buyer in advance of construction
• Custom homes- custom builder constructs homes under contract with builder
• Tract homes- type of spec home. A new subdivision will feature several model homes & buyers select floor plans