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Unit 1 – THE REAL ESTATE BUSINESS

You can expect to see one question on the end-of-course exam and one question on the state exam from this unit.

After successfully completing this unit, you will be able to
• describe the various activities of real estate brokerage,
• distinguish among the five major sales specialties,
• identify the role of property managers,
• describe activities that require appraiser services and distinguish among CMA, BPO, and appraisal, explain the appraisal process and the role of the appraiser,
• understand the mortgage process and the role of mortgage loan originator,
• explain the three phases of development and construction, and
• distinguish among the three categories of residential construction.

Key Terms

absentee ownerfarm area
appraisalfollow-up
business brokerproperty management
business opportunityproperty manager
community association manager (CAM)real estate brokerage
comparative market analysis (CMA)subdivision plat map
dedicationUniform Standards of Professional Appraisal Practice (USPAP)

Overview

This unit describes the huge impact that the real estate industry has on the economy of our country. More than 75% of the wealth of the United States is in some type of real estate. The section on the real estate brokerage business describes the many disciplines available to persons who wish to work in this field. Another important part of the industry is the development and construction division. In that section you’ll learn about the different phases of construction. Government plays an important role in the real estate industry through regulation at the local, state, and federal levels.