Unit 1 Bob Hogue Real Estate Exam Questions And Answers

Complex real estate transactions - ANS Demand the services of licensed real estate associates, appraisers, attorneys, bankers, title insurance agents, architects, surveyors, and accountants Residential real estate v. Commercial real estate - ANS Residential: often the greatest source of wealth and savings for individuals Commercial: addresses the need for retail, office, and manufacturing space The product that a real estate sales associate must market is _________ ________. - ANS Expert Information The three areas of expertise real estate licensees bring to the transaction relate to ______________, ______________, and ______________ ______________. - ANS 1. Knowledge of *Property Transfer* 2. Knowledge of *Market Conditions* 3. Knowledge of *How to market real estate and businesses*. Property Transfer - ANS transfers of title, property taxes, financing, and local zoning ordinances. Marketing Conditions - ANS Changes in ______________ ______________ are due to changes in income tax laws, building moratoriums, and fluctuations in supply and demand. How to market real estate and businesses - ANS *Sale presentation* that is *most effective* when working with a physician relocating to a new city may be completely different from the approach used to assist the owner of an expanding gourmet coffee bar in choosing an additional location. Real Estate Brokerage - ANS business of bringing together buyers & sellers, owners & renters, & completing real estate transactions. Five (5) Components of real estate brokerage - ANS 1. sales and leasing, 2. property management, 3. appraising, 4. financing, and 5. counseling. Sales and Leasing - ANS The broker act as an agent or an intermediary between two or more people in the *negotiation* of the *sale, purchase, or rental of real estate*. Five (5) major sales specialties - ANS 1. Residential, 2. Commercial, 3. Industrial, 4. Agricultural and 5. Businesses 1. Residential - ANS Best access routes and locations of schools, shopping facilities, and recreation facilities. They must be able to *explain property taxes, homestead exemptions, restrictive covenants*, and approximate utility costs in the area. *Restrictive covenants* are binding legal obligations written into the deed of a property contract, usually by the seller. These covenants can be either simple or complex and can *levy penalties against buyers who fail to obey them*. 2. Commercial - ANS Need expertise regarding Income-producing properties, investment analysis, and the various techniques for increasing after-tax cash flow. Examples of income-producing commercial properties: - ANS Improved residential property of more than four units, retail stores, office buildings, and shopping centers. 3. Industrial - ANS technical knowledge of the needs of different industries, such as *transportation requirements, industrial construction methods, and local land-use restrictions* affecting industrial properties. 4. Agricultural - ANS Must be familiar with operation of farms and the *economic problems associated* with the various types of farming. Real estate licensees who specialize in agricultural real estate are knowledgeable about *farm operations* and the *federal programs* affecting farm operations. 5. Businesses - ANS Involves the sale or lease of an existing business, including the sale of tangible and intangible assets. Business brokers - ANS Real estate licensees who engage in the sale, purchase, or lease of businesses. There is a presumption in Florida law that businesses will have some sort of real property involved, either land with physical improvements (such as a building) or a long-term lease. For this reason, - ANS In Florida, an active current real estate license is required to sell or lease business opportunities. In most states, if real property is an asset of the business: - ANS A real estate broker's license is required to sell the business. Target Marketing - ANS Involves developing a database of prospects to direct a specific message. Understanding the demographic, financial, and lifestyle characteristics of a target market helps real estate professionals choose personalized messaging and appropriate advertising media. Farm area - ANS An area a real estate professional often specializes in one particular geographic area or property type. This method of target marketing is called *farming*. Follow-up - ANS Important to all aspects of real estate sales because it results in a good reputation, future referrals, and word-of-mouth advertising. * True or False* Real estate professionals who specialize in the sale, purchase, and lease of businesses must hold a commercial license. - ANS Fasle. In Florida, an active real estate sales associate or broker license is required to market business opportunities. *No license distinction* is made regarding the type of real estate. Property Management - ANS The leasing, managing, marketing, and overall maintenance of a property for the property owner. Property Manager - ANS The property owners local representative. Responsible for protecting the owner's investment and to maximize the owner's return on the investment. Rental Agents - ANS Typically find a tenant for property and collect a fee. Acts as intermediaries between a potential tenant and the property owner seeking to acquire a tenant. *True or False* Rental agents manage the property once a tenant is secured. - ANS Fasle. Rental agents typically find a tenant for property and collect a fee. *Property managers* continue to manage the property once a tenant is secured. Absentee Owner - ANS A property holder who does not reside on the property and who usually relies on a property manager to supervise the investment.