Florida Real Estate Exam 2023 Flashcards

Florida Real Estate Exam 2023 Flashcards Commercial propertyland and buildings that produce rental income. Apartments, duplexes, hotels, office buildings, and stores are all examples of rental incomes Very detailed and time-consuming. Lots of the quality of the materials, such as lumber brick, etc. and then factors in the building, permit payroll, taxes, etc. this method is best for historical structures and is the most accurate but very time consuming.Cost Approach Steps Disadvantages of Investing in Real Estate The concept of Non-Liquidity/LiquidityMarket is local in natureThe need for expert HelpThe management effortThe Risk Replaces the current materials and methods with utility and function similar to the original but not exact.Unit in Place CMA Comparative Market Analysisa tool licensee use to determine price for their property using current listings,recent sales and expired listings The cost of brining a new improvement into existence.Price the least amount a seller may take and the larges amount a buyer will pay.Real Estate Appraisal Florida Real Estate Commission (FREC)consists of seven members appointed by the governor and confirmed by the state Senate. The Commission is composed of four real estate brokers (actively licensed for five of the preceding years before appointment), one real estate broker or sales associate (actively licensed for two years prior to appointment), and two consumer members (never licensed as a broker or sales associate). At least one member of FREC must be 60 years of age or older.Members of FREC shall be appointed for four-year terms.FREC administers and enforces the real estate license law, Chapter 475, Part I, Florida Statutes.DedicationA developer or builder dedicates real property toward public use. Examples include parks, Schools Hospitals.National Association of RealtorsA professional real estate organization that requires members to uphold a specific set of ethics and pay dues. In turn, the members can call themselves Realtors.Individuals not requiring a license (4)Any property management firm or owner of an apartment complex providing a finder's fee or referral fee to an unlicensed person, who is a tenant in the apartment complex, PROVIDED THE VALUE OF THE FEE DOES NOT EXCEED $50 per transaction. A finder's fee or referral fee means a fee paid, credit toward rent, or anything of value provided to a person for introducing or arranging the

rental or lease of an apartment unit.It is illegal to pay a finder's fee to an unlicensed person under any other circumstance than the situation described above!Compare 3 to 6 properties. Appraiser attempts to use properties in the same area.Adjusting the COMPS CapitalizationMethodist of determining a property's value by considering the net annual income and the capitalization rate General Licensure ProvisionsYou must be 18Must have a High School DiplomaBe Honest, Truthful and Trustworthy. Good Character No

Criminal Record

Florida Real Estate Commission (FREC)The Florida Legislature created this organization to administer and enforce license law, authority to keep records, conduct investigations, and the power to grant, deny, suspend, and revoke licenses.CONFORMITY . The more a property or its components are in harmony with the surrounding properties or components the greater the value.Regression and Progression the value os the better quality property is affected adversely bye the presence of a lesser quality property.Principles of Value (Continued) The amount a consumer has paid for a transaction. This where a property may have been improved or updated. The Amount paid is NOT Aligned with the value...An amount paid by a previous contract.Worth Appraiser might weight the comparable based upon the properties closest in likeness to the subject properties. The closer the the likeness to the subject property the more weight it will be assigned.Cost Approach Highest and Best Use Potential use that would produce the greatest net income generating the highest valueSubstitution maximum value a property tends to be set by the cost of an equally desirable and valuable substitute property.Law of Supply and Demand.Principles of Value (Continued) Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers. Unusually High interest and non-desirable terms.

Cost Approach: Age and Value

Industrial PropertyManufacturing or distribution facilities such as a factory or warehouse.

The rule of thumb is:If the comparable is Superior -Subtract

adjustments to generate the value of the subjectIf the comparable is Inferior. -Add adjustments to generate the value of the subject.Remember. Superior /Subtract Inferior/ IncreaseTHE SUBJECT PROPERTIES ARE NEVER

ADJUSTED.

Weighted Values DepreciationLoss in Value in the market over time. (Also in percentage) Gross Rent Multiplier is for rentals. Gross Income Multiplier for commercial property valuations Comparative Market Analysis Custom HomeUnique house designed by an architect and built by a contractor to meet the needs of an individual family Broker Price OpinonUsually at the request of the mortgage company/bank..request of a local expert who collects data and provides it in specific format for the bank. Usually done for short sales, etc.