Modern Real Estate Practice in Illinois Ninth Edition. Unit 1: Introduction to the Real Estate Business
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1 Modern Real Estate Practice in Illinois Ninth Edition Unit 1: Introduction to the Real Estate Business
2 A Very Big Business Real Estate: A Business of Many Specializations Brokerage the business of bringing people together in a real estate transaction broker acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property a broker is a licensee employed by a sponsoring broker a broker conducts brokerage activities on behalf of the sponsoring broker, who is ultimately responsible for the broker s acts A managing broker manages individual offices and licensees.
3 A Very Big Business Real Estate: A Business of Many Specializations Appraisal the process of estimating a property s market value based on established methods and the appraiser s professional judgment Property management a person or company is hired to maintain and manage property on behalf of its owner basic responsibility of the property manager is to protect the owner s investment and maximize the owner s return on the investment
4 A Very Big Business Real Estate: A Business of Many Specializations Financing the business of providing the funds that make real estate transactions possible Subdivision the splitting of a single property into smaller parcels Development involves the construction of improvements on land
5 A Very Big Business Real Estate: A Business of Many Specializations Home inspection allows practitioners to combine their interest in real estate with their professional skills and training in the construction trades. In Illinois requires a separate license. Counseling involves providing clients with independent advice based on professional judgment gives clients the information needed to make informed decisions
6 A Very Big Business Real Estate: A Business of Many Specializations Real Estate Education available to both practitioners and consumers state licensing laws establish the minimum educational requirements for obtaining and keeping a real estate license courses for pre licensing or continuing education purposes can only be offered by licensed schools and licensed instructors
7 A Very Big Business Real Estate: A Business of Many Specializations Auctioning uses an open and competitive bidding process to transfer property ownership auctioneers have licensing requirements in Illinois Other Areas many other real estate career options are available in a variety of business settings in both the private and public sector
8 Professional Organizations National Association of REALTORS (NAR) (members are known as REALTORS ) State and local NAR affiliates, such as the Illinois Association of REALTORS (IAR) and the Chicago Association of REALTORS (CAR) National Association of Real Estate Brokers (NAREB); members are Realtists
9 Professional Organizations Appraisal Institute, the American Society of Appraisers (ASA), the National Association of Independent Fee Appraisers (NAIFA) Real Estate Educators Association (REEA) Real Estate Buyer s Agent Council (REBAC), now associated with NAR National Association of Exclusive Buyer s Agents (NAEBA) National Association of Hispanic Real Estate Professionals (NAHREP) Asian Real Estate Association of America (AREAA)
10 Professional Organizations Building Owners and Managers Association International (BOMA) Institute of Real Estate Management (IREM) CCIM Institute (commercial real estate) Association of Real Estate License Law Officials (ARELLO) American Society of Real Estate Counselors (ASREC)
11 Types of Real Property Residential Commercial Industrial Agricultural Special Purpose
12 The Real Estate Market Supply and demand in the real estate market The real estate market generally adjusts slowly to the forces of supply and demand Uniqueness Immobility Local Market Technological Advancements
13 Supply and Demand Factors Affecting Supply Labor force Construction costs Government controls Financial policies Factors Affecting Demand Population Demographics Employment and wage levels
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