Course Overview: The Real Estate Business
Snapshot Review
INTRODUCTION TO THE REAL ESTATE BUSINESS
Real estate activities ● create, improve, manage, maintain, demolish, own, regulate, and transfer real properties
Property type specialization ● residential; residential income; office; retail; industrial; farm and ranch; special purpose; land
REALESTATE BROKERAGE ● procure a buyer or tenant for an owner or landlord, or vice versa
Forms of specialization ● by property type; geographical area; type of transaction; type of client; by form of business organization; or by form of client relationship
Skills and knowledge ● market conditions; law; financing; marketing; ethics; selling; communications; computer basics; and other skills
DEVELOPMENT AND CONSTRUCTION
Land acquisition ● components of acquiring land for development: strategic planning, market analysis, locational features, demographics, intended use, highest and best use, financing, competition, supply and demand, feasibility, costs of site preparation, engineering, design, construction, permits to determine affordable price
Subdividing and development ● state and municipal regulation: zoning, uses, construction standards, environment, recording of plat map, dedication of non-private areas
Construction ● three types of residential construction: spec home, custom homes, tract homes
THE ROLE OF GOVERNMENT
Regulation of business practices ● all facets of the industry are regulated by federal, state, and local laws; agents must understand relevant laws and adapt business practices accordingly
Real estate license laws
●the primary body of laws and regulations governing the licensure and conduct of real estate brokers and agents
●license laws are administered and enforced under the jurisdiction of the state
PROFESSIONAL ORGANIZATIONS ● promote interests of practitioners and enhance their professional standing real estate commission