Real Estate #17

What it would take to recreate the property

Cost

The terms "appraisal," "valuation,' " and "evaluation" are confused by many, according to Vladimir. Let's see if you're confused. Select the proper term for each condition. 1. Unbiased estimate of value of a specific property on a specific date 2. Process of forming an opinion of a property's value 3. Study of a property, potentially for land use or marketability

1. Appraisal 2. Valuation 3. Evaluation

Determine whether each of these terms describes a CMA or an appraisal. 1. Prepared by a real estate agent 2. Determines property value, which lenders use in the mortgage process 3. Helps estimate a property's market price range for the listing

1. CMA 2. Appraisal 3. CMA

1. The report analysis provides a greater level of detail. 2. Lenders request this for a foreclosure or short-sale property.

1. CMA 2. BPO

It's important to understand how a CMA and a BPO are different. Match the statements with the proper tool. 1. Prepared for homeowners to sell their property 2. Commonly uses a drive-by approach to determine & marketability and price 3. Commonly entails a tour by a licensee, a search on the MLS, and a comparison of similar properties

1. CMA 2. BPO 3. CMA

You never want to walk into a listing presentation empty-handed. This gives sellers the sense that you're unprepared. What items does Keira typically bring to a listing presentation? Select all that apply.

1. CMA 2. Marketing plan 3. MLS listing sheets for comparable properties 4. Listing contracts

In Heather's neighborhood, the ________ is stiff. She put her house on the market, and within the week, five more homes were up for sale on their street alone. Ted's house is in the middle of an industrial area. The house is more than 100 years old, and this was not an industrial area when the home was built, but the neighborhood still influences the property's value. This is an example of _________

1. Competition 2. Conformity

Leases are peculiar because they must adhere to requirements for two types of legal actions, which are:

1. Contract 2. Conveyance

As is often the case in real estate terminology, there is another set of terms that mean the same thing as conveyance and contract. Match the terms that go together. 1. Privity of estate 2. Privity of contract

1. Conveyance 2. Contract

Vladimir tells you about two types of cost: direct and indirect. Sort the costs into the appropriate buckets. 1. Wood for construction 2. Windows 3. Architectural fees 4. Recording fees 5. Electrician

1. Direct Cost 2. Direct cost 3. Indirect cost 4. Indirect cost 5. Direct cost

Danny exhibited several traits when presenting the CMA to the Schumachers. In fact, these are traits he exhibits every day in his career as a real estate licensee. What four traits did Danny display?

1. Effective communication 2. Documentation 3. Diligence 4. Competence

These legal terms can be tricky because they mean similar things, but we think you will have no problem choosing the correct term or each blank. Let's see how you do. 1. ___________ : The parties have signed the lease. 2. ____________: The parties have received copies of the lease. 3. ____________: The parties agree to abide by the lease terms.

1. Execution 2. Delivery 3. Acceptance

Interest rates determine buying power. What does this mean? Higher interest rates mean _________ buyers can afford to buy, which will result in ________ pricing pressure. Lower interest rates mean _______ buyers can afford to buy, which will result in _______ pricing pressure.

1. Fewer 2. Downward 3. More 4. Upward

Unemployment rates influences the number of buyers in the market. How? High unemployment means 1.__________ buyers can buy, which 2. ___________ supply and 3.________ housing prices.

1. Fewer 2. Increases 3. Decreases

Taxes are another factor that can affect housing prices. How so? Lower taxes _________ buying power, supporting ________ home prices. Higher taxes ________ buying power, supporting ________ home prices.

1. Increase 2. Higher 3. Decrease 4. Lower

As an appraiser, Vladimir's first step in the valuation process is to identify the problem. What are two benefits of stating the problem up front?

1. It informs the appraiser's approach. 2. It helps the appraiser identify the type of data required.

Appraisals differ from CMAs in part because appraisers perform a more detailed analysis of a property, and they also use three approaches to value [cost, income, and sales comparison). Which five of these factors does a certified appraiser consider when determining a property's value?

1. The property 2. Similar properties in proximity to the subject property 3. Recent sales and listings 4. Landing 5. Construction costs

Danny told the new licensees to look for similar sold properties when searching for comparables to prepare a CMA. What two timeframes are best for licensees to use for recently sold properties?

1. Three months 2. 6 months

Your resource introduced you to the acronym DUST, four factors that influence value. Let's see how well you can recall each of the four factors. Match each factor to its description. 1. The ease with which the deed can be transferred and the property put to the desired use 2. Reflects the market supply, or lack thereof 3.Speaks to the property's function 4.Relates to a property's popularity

1. Transferability 2. Scarcity 3. Utility 4. Demand

The resource discusses how appraisal values factor in to the amount a lender will approve for a loan. Let's look at an example. Licensee Keira worked with a couple who were pre-approved for a loan up to $100,000 but found just what they were looking for at a price of $60,000 (which the sellers happily accepted). The appraiser, however, valued the cottage at $80,000. For what amount will the lender approve a loan?

60,000

Which of these statements about leases is true?

A lease must meet the essential requirements of any contract to be enforceable.

Which terms describes a lease that has been agreed to by both parties?

Accepted

Cost of 400$+

Appraisal

Usually prepared for lender, buyer, seller, and sometimes courts

Appraisal

Talk about coincidences. The Norths and Sanchezes both moved into this neighborhood within weeks of each other years ago, have the same floor plan and size, and both listed their homes for sale this week.

Competing

Minimal cost

BPO

Usually prepared for lender (in a foreclosure or short-sale situation) or a relocation company

BPO

Mutuality of obligation

Both the landlord and tenant are bound to the lease's terms

No cost

CMA

Usually prepared for a seller, sometimes a buyer

CMA

Which type of analysis starts with a visit to the property, a search on the MLS, and a comparison of comparable sales, and hopefully ends in a listing for a real estate licensee?

Comparative market analysis

When licensees follow through on what prospects have asked, arrive for meetings on time, and come prepared, what trait are they exhibiting?

Competence

Parties to the lease must be of an age of majority and of sound mind

Legal capacity

Regional Bank is sitting on some cash. The bank would like to lend this money to consumers so it can earn income on this cash. What action might Regional Bank take to entice borrowers?

Decrease interest rates

Which of these contract-specific requirements for a lease prohibits minors from entering into a lease agreement?

Legal capacity

The last slide was pretty easy. Now let's see if can remember which term had something to do with conveyance. Fill in the blank for this definition: A lease conveys property from a landlord to a tenant, thus creating privity of __________

Estate

The single-story family home on Antler Drive is shaping up to be a tough sale. The end date of the listing contract period has passed with no offers on the table.

Expired

Jane owns an empty warehouse. She's contemplating whether she stands to profit more by keeping the industrial property or converting it to residential condominiums.

Highest and best use

So what exactly happens if a property is overpriced? Identify the three possible results of overpricing a property.

Languishes on the market Misses the market Brings in lowball offers

The lease cannot have an illegal purpose

Lawful object

Agreement between the landlord and tenant

Mutual assent

One of the requirements of an enforceable lease is that both parties are bound to the terms of the lease. This is called________

Mutuality of obligation

Mario can't give away a quarter-acre lot. Everyone is looking for more land. So he combines two parcels to make a half-acre lot, which are selling like hotcakes.

Plottage

According to Keira, what's always a factor with every listing presentation?

Price

What the seller accepts and the buyer pays

Price

So, what's the best strategy for properly pricing a property?

Price at market value.

After five months on the market, the owners of a cozy ranch around the corner accepted an offer and closed on the property last week.

Recently sold

After making adjustments to the comparables he selected, Danny came up with a recommended listing price range for the Schumachers' house. Who ultimately determines what the listing price for the property will be?

Seller

Ted will have a hard time getting his asking price, especially now that a similar house with the same floor plan and finishes just sold for $10,000 less.

Substitution

When completing a CMA, what might be indicated if a comparable property had a quick sale?

The market for similar homes is good.

What the property is worth

Value

The answer is ... This legal term describes the act of signing a lease.

What is executed?

Quick, before somebody else hits the buzzer! The answer is. This lease requirement indicates the landlord and tenant agree to the terms of the lease.

What is mutual assent?

Steve is preparing a comparative market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property?

Zero