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.

Learning Objectives

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,
• 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 ownerfollow-up
appraisalproperty management
business opportunityreal estate brokerage
comparative market analysis (CMA)special-purpose property
dedicationsubdivision plat map
farm areaUSPAP

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 and 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.