California Real Estate Practice - Cumulative Notes
Terms
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- Define CMA.
- Competitive Market Analysis. Analysis chart with previous/current home prices in area used to determine listing prices.
- Name the three types of values real estate may be valued at.
- Its tax value, insurance value, and market value.
- Name the four phases of the life cycle of real estate.
- Integration, equilibrium, disintegration, and rejuvenation.
- Define integration.
- The begining stage of the four phases of real estate's life cycle. It is the initial stage when the neighborhood is being developed.
- Define equilibrium in relation to real estate's life cycle.
- The phase when the neighborhood is changing very little, a period of stability.
- Define disintegration in relation to real estate's life cycle.
- The phase after equilibrium when the economic usefulness of the properties in the neighborhood is almost over.
- Define rejuvenation in relation to real estate's life cycle.
- Also known as rebirth or revitalization. It is a stage of renewal. Structures in the neighborhood are rebuilt and sometimes the properties are put to new use.
- Name and define the three types of depreciation.
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Deferred depreciation - Normal wear and tear due/physical deterioration.
Funtional obsolescence - Deteriation due to design deficiency.
External obsolescence - Deteriation due to external factors such as an airport nearby, freeway, etc... - What is an arm's length transaction?
- An arm's length transaction is a sale in which both parties are informed of the property's merits and shortcomings, neither is acting under unusual pressure, and the property has been on the open market for a reasonable time. You should use only arm's length transactions as a comparable.
- Give example's of transactions that are not arm's length.
- Foreclosures, relative to relative transactions. (i.e. a transaction which situations may have influenced the price of the transaction therefore causing its price to be different from actual market value.)
- The process of evaluating the adjusted prices of the comparables to arrive at an estimate of the subject property's market value is called _____________.
- Reconciliation.
- What is submitted to a lender if an appraiser appraises a home significantly below the price agreed upon between the seller and buyer?
- Request for reconsideration of value.
- Name five things you should bring with you to a listing appointment.
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1) Competitive market analysis.
2) Listing agreement.
3) Marketing plan.
4) Agent/Brokerage information.
5) Net proceeds to seller.