Chapter 1 Snapshot Review

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