BROKERAGE

 BROKER

THE BUSINESS OF BRINGING PEOPLE TOGETHER IN A REAL ESTATE TRANSACTION. THE BROKER ACTS AS A POINT OF CONTACT BETWEEN TWO OR MORE PEOPLE IN NEGOTIATING THE SALE, PURCHASE, OR RENTAL OF PROPERTY.

A PERSON OR COMPANY WHO IS LICENSED TO BUY, SELL, EXCHANGE, OR LEASE REAL PROPERTY FOR OTHERS AND CHARGE A FEE FOR THESE SERVICES.

SALESPERSON

LICENSEE

EMPLOYED BY OR ASSOCIATED WITH A BROKER

CONDUCTS BROKERAGE ACTIVITIES ON BEHALF OF OR FOR THE BROKER

A PERSON WHO HAS SATISFIED THE REQUIREMENTS SET FORTH BY A LICENSING AGENCY OR STATE LEGISLATION INCLUDING COURSE HOURS OR WORK EXPERIENCE AND HAS PASSED A STATE-MANDATED REAL ESTATE EXAM

THE PROCESS OF ESTIMATING A PROPERTY'S MARKET VALUE, BASED ON ESTABLISHED METHODS AND THE APPRAISER'S PROFESSIONAL JUDGEMENT

IN MANY STATES MUST BE LICENSED OR CERTIFIED TO CARRY OUT LOCAL TRANSACTIONS, ALSO SOMETIMES FOR FEDERALLY RELATED TRANSACTIONS

PROPERTY MANAGEMENT

PROPERTY MANAGER

A PERSON OR COMPANY HIRED TO MAINTAIN AND MANAGE PROPERTY ON BEHALF OF ITS OWNER

EMPLOYMENT CONTRACT IS CALLED A MANAGEMENT AGREEMENT

PROTECT OWNER'S INVESTMENT AND MAXIMIZE THE RETURN ON THAT INVESTMENT

THE BUSINESS OF PROVIDING THE FUNDS THAT MAKE REAL ESTATE TRANSACTIONS POSSIBLE THROUGH:

MORTGAGE LOAN OR TRUST DEED LOAN SECURED BY THE PROPERTY

COMMERCIAL BANKS, SAVINGS ASSOCIATIONS, MORTGAGE BANKERS, AND MORTGAGE BROKERAGE COMPANIES

SUBDIVISION IS THE DIVIDING OF A SINGLE PROPERTY INTO SMALLER PARCELS

DEVELOPMENT INVOLVES THE CONSTRUCTION OF IMPROVEMENTS ON THE LAND EITHER ON-SITE (NEW HOMES, SWIMMING POOLS = ON INDIVIDUAL PARCELS) OR OFF-SITE (WATER LINES AND STORM SEWERS = MADE ON PUBLIC LANDS TO SERVE THE NEW DEVELOPMENT)

RELATED BUT ARE INDEPENDENT PROCESSES THAT CAN OCCUR SEPARATELY

A THOROUGH VISUAL SURVEY OF A PROPERTY'S STRUCTURE, SYSTEMS, AND SITE CONDITIONS SUBMITTED IN AN ANALYTICAL REPORT FOR PURCHASERS AND HOMEOWNERS

HOME INSPECTORS MAY NEED TO BE LICENSED BY THE STATE

PROVIDING CLIENTS WITH COMPETENT INDEPENDENT ADVICE BASED ON SOUND PROFESSIONAL JUDGEMENT

A REAL ESTATE COUNSELOR HELPS CLIENTS CHOOSE AMONG THE VARIOUS ALTERNATIVES INVOLVED IN PURCHASING, USING, OR INVESTING IN PROPERTY AND FURNISHES CLIENTS WITH THE INFORMATION NEEDED TO MAKE INFORMED DECISIONS

MUST HAVE HIGH DEGREE OF INDUSTRY EXPERTISE

STATE LICENSING LAWS ESTABLISH THE MINIMUM EDUCATIONAL REQUIREMENTS FOR OBTAINING AND KEEPING A REAL ESTATE LICENSE

CONTINUING EDUCATION ENSURES THAT LICENSEES KEEP THEIR SKILLS AND KNOWLEDGE CURRENT

NATIONAL ASSOCIATION OF REALTORS

COMPOSED OF STATE, REGIONAL, AND LOCAL ASSOCIATIONS

SPONSORS VARIOUS AFFILIATED ORGANIZATIONS THAT OFFER PROFESSIONAL DESIGNATIONS TO BROKERS, SALESPERSONS, APPRAISERS, AND OTHERS WHO COMPLETE REQUIRED COURSES IN AREAS OF SPECIAL INTEREST

MEMBERS SUBSCRIBE TO A CODE OF ETHICS AND IF ELIGIBLE ARE ENTITLED TO BE KNOWN AS 'REALTORS' OR 'REALTOR ASSOCIATES'

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

MEMBERS KNOWN AS 'REALTISTS'

ADHERE TO A CODE OF ETHICS

AROSE OUT OF CIVIL RIGHTS MOVEMENT, GAVE RISE TO FAIR HOUSING LAWS

DEICATED TO EQUAL HOUSING OPPORTUNITY

RESIDENTIAL

COMMERCIAL

MIXED-USE

INDUSTRIAL

AGRICULTURAL

SPECIAL PURPOSE

A PLACE WHERE GOODS CAN BE BOUGHT AND SOLD

MAY BE A SPECIFIC PLACE

MAY BE A VAST, COMPLEX, WORLDWIDE ECONOMIC SYSTEM FOR MOVING GOODS AND SERVICES AROUND THE GLOBE

ITS FUNCTION IS TO PROVIDE A SETTING IN WHICH SUPPLY AND DEMAND CAN ESTABLISH MARKET VALUE

WHEN SUPPLY INCREASES AND DEMAND REMAINS STABLE, PRICES GO DOWN

WHEN DEMAND INCREASES AND SUPPLY REMAINS STABLE, PRICES GO UP

2 CHARACTERISTICS OF REAL ESTATE THAT GOVERN SUPPLY AND DEMAND AND HAVE MOST IMPACT ON MARKET VALUE:

UNIQUENESS - NO TWO PARCELS OF REAL ESTATE ARE VER EXACTLY ALIKE, EACH OCCUPIES ITS OWN GEOGRAPHIC LOCATION

IMMOBILITY - PROPERTY CANNOT BE RELOCATED TO SATIFY DEMAND WHERE SUPPLY IS LOW 

LABOR FORCE AVAILABILITY

CONSTRUCTION

MATERIAL COSTS

GOVERNMENTAL CONTROLS

FINANCIAL POLICIES

POPULATION

DEMOGRAPHICS

EMPLOYMENT

WAGE LEVELS