closing-related questions4. Providing buyers with a list of

Principles of Real Estate I - Champions School Flashcards 1.) Arranging for the pre-qualification/pre-approval of buyers2.) Discussing general mortgage loan programs that buyers might consider3.) Answering finance and closing-related questions4.) Providing buyers with a list of potential lenders (3 or more)5.) Preparing the contract with all terms of sale, including financing conditions6.) Tracking important dates from contract to closing, including monitoring the time the buyer has to obtain financing approval Federal Housing Administration (FHA) 1.) A fair return or equivalent in goods, services, or money for something exchanged2.) The monetary worth of something Supply and demand

• passed by Texas Legislature in 1939- purpose is to

protect the public agains unscrupulous brokers and sales agents Texas Real Estate Commission (TREC) Certified Commercial Investment MemberSociety of Industrial and Office REALTORS (SIOR) most often involves the acquisition of land for development into RESIDENTIAL SUBDIVISIONS, retail centers, and other commercial uses.Petroleum Landmen

• Increase in land costs- Construction (labor and material)

costs- Economics: monetary policies of the Fed and fiscal

policies of Congress affect the availability of funds in the marketplace. A policy that results in an abundance of funds to be loaned at low interest rates affects supply of real estate.- Local gov't. building codes and zoning ordinances, regardless of their perceived value, tend to restrict supply.

Factors that affect demand for real estate:

primary determinants of real estate values Factors that affect supply:

Properties are purchased and held in anticipation of income, appreciation, or both

An agent's role in mortgage lending includes:

based upon "common sense", tradition, custom. Under common law, a court looks to the findings of prior courts when rendering a decision.Statutory law the largest professional organizations for real estate professionals. Consists of state associations and local associations or boards. The local associations or boards operate the multiple listing service (MLS) in markets throughout the U.S.Institute of Real Estate Management (IREM) individuals with a real estate background who are employed by oil and gas companies. May employed to do title work to determine mineral ownership and might negotiate oil and gas leases with mineral owners.National Association of REALTORS (NAR)

Appraisalthe business of providing a professional opinion of value of real property. Lenders rely on the reports to make sound lending decisions. Buyers rely on the reports when negotiating the purchase of a property. Can be a useful guide for a seller when pricing a property for resale.outside forces cannot destroy land. It remains, no matter what happens to it. It may sink under water, become a crater, or be built up. In any case, the land will still be there; it is permanent.Immobility The best career path for Clark is PROPERTY

MANAGEMENT.

Janine is just getting started as a licensed agent. While prospecting for clients, she noticed that there are many multi-family complexes in her market area; Janine understands that it is a hot rental market. One of Janine's strengths is that she can match the amenities of multiple locations well to her clients' needs. She is used to working on commissions and enjoys networking with others.Homeownership protects the individual or family from future increases in rental rates Investment

• Availability of employment- Population trends- Availability

of trained labor force- Local gov't. policy Common law

• Growth in employment is the primary driver of demand-

Transportation systems- Personal preference (least

important factor)- Availability of credit- Federal gov't. policy:

Federal income tax policy favors homeownership by allowing the deduction of home mortgage interest and property taxes, and the Federal Reserve monetary policies can expand or constrict the nationwide supply of mortgage funds.The employment market Mortgage Lendingthe business of providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for the payment of a debt.land cannot be moved. When personal property is purchased, the buyer can move it to a new location. When land or rights in land are purchased, the owner must go to the land.Nonhomogeneity For many, homeownership is a sign of accomplishmentSecurity value is affected by man-made changes to the land. These

changes can be on the land or off-site.Example: improved

transportation, which makes the land more accessible,

such as railroads crossing the U.S., or airports.Example:

Disney World. When freeways are widened or extended, land in previously undeveloped areas becomes attractive for new residential and retail development.Fixity land, and additions to the land, such as buildings, take long periods to pay for themselves. It may take 20 years for the

owner of a new office building to recover the cost of acquisition of the land, construction, and the cost of financing. ("permanent investment")Also refers to the fact that the land cannot be moved.Situs

members are building owners, managers, developers, leasing professionals, corporate facility managers, asset managers, and the providers of the products and services needed to operate commercial properties.Clark has been a residential real estate agent for five

years. His skills include: being proactive, staying current

and knowledgeable on market trends. He is resourceful, personable, and above all, he is responsible and detail-oriented. He would like to expand into a new area of real estate and is considering a position where he can carry out the day-to-day operations of a single property. He has the ability to take on a multitude of logistical issues without losing sight of the responsibilities required of a manager.refers to the location of the property or land from an economic, not geographic, viewpoint. The familiar phrase "location, location, location" is based on the preferences people have for specific characteristics in property, and the

fact that location dominates those preferences.Example:

Climate, views, access to natural recreation, schools, job opportunities, transportation.Situs may change over time as society changes and different lifestyles prevail.Value purpose is to advance the shopping center industry and to promote its role in the commercial distribution of consumer goods and services.Building Owners and Managers Association (BOMA) International the most important determinant of residential real estate value At the national level, factors that affect residential real

estate value:

Mortgage interest and property taxes may be tax-deductible Pride of ownership Brokeragethe aspect of the real estate business that pertains to overseeing the needs of the parties and COMPLETING A TRANSACTION. Not the same as agency; a brokerage transaction may or may not involve agency relationships.work for firms that specialize in locating units for tenants in multifamily complexes. Should be familiar with the amenities of all complexes in the market area. Generally paid fees by the apartment complexes for referrals. Must have a real estate license in Texas.Home Inspectors Established in 1954 to give commercial real estate practitioners an opportunity to further their business practices through education and networking opportunities.

CCIM an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing.CCIM Institute The career path that best suits Janine is APARTMENT

LOCATOR.

James is a residential agent who possesses excellent customer service skills. His passion for the real estate business started when he was in high school, working in home repair and construction with his father. Though he has been successful as a residential agent, he would like to