Real estate sales associates involved in sales and leasing often specialize in any of the following five major sales specialties:
1. Residential
Chapter 475, F.S., defines residential real estate as 4 or fewer residential units, vacant land zoned for 4 or fewer residential units, or agricultural property of 10 or fewer acres. Residential sales associates should acquire a thorough understanding of the strengths and weaknesses of the neighborhoods in the areas in which they specialize (farm). To be successful, residential specialists need to know the best access routes and locations of schools, shopping facilities, and recreation facilities. They must be able to explain property taxes, homestead exemptions, restrictive covenants, and approximate utility costs in the area. One of the more important aspects of residential sales is knowing how to help prospective buyers obtain financing. Most real estate licensees specialize in the sale and purchase of owner-occupied residential property.
2. Commercial
To provide competent service to investors, real estate professionals who specialize in commercial sales need expertise regarding income-producing properties, investment analysis, and the various techniques for increasing after-tax cash flow. Improved residential property of more than four units, retail stores, office buildings, and shopping centers are examples of income-producing commercial properties. Contacts with financial institutions and mortgage lenders are important to facilitate commercial transactions.
3. Industrial
The industrial sales associate deals in three types of properties: (1) sites in industrial parks or subdivisions; (2) redeveloped industrial parcels in central areas; and (3) industrial acreage. Sales associates of industrial real estate must have technical knowledge of the needs of different industries, such as transportation requirements, including access to railroad or airport transportation; industrial construction features, such as steel versus concrete block construction; and local land-use restrictions affecting industrial properties. With the increase in technological industries, more and more industrial brokers are finding it rewarding to develop and sell beautifully landscaped and well-conceived industrial subdivisions. Almost every large city in Florida has experienced the development of industrial parks.
4. Agricultural
Agricultural property is defined in Chapter 475, F.S., to mean agricultural property of more than 10 acres. Professionals who specialize in the sale of farms and agricultural land must be familiar with the operation of farms and the economic problems associated with the various types of farming. One of the licensee's most important skills is the ability to communicate with farmers. Sales associates who are effective in dealing with farm operators are knowledgeable about farm operations and the federal programs affecting farm operations.
5. Businesses
Real estate licensees who engage in the sale, purchase, or lease of businesses are referred to as business brokers. This real estate activity is sometimes called business opportunity brokerage. Business opportunity brokerage involves the sale or lease of an existing business, including the sale of tangible and intangible assets. In most states, if real property is an asset of the business, a real estate broker's license is required to sell the business. There is a presumption in Florida law that businesses will have some sort of real property involved, either land and physical improvements such as a building or a long-term lease. For this reason, in Florida, an active current real estate license is required to sell or lease business opportunities (business opportunity brokerage is explained in more detail in unit 17).
Many brokers and sales associates prefer to select one specific portion of a city and become an expert in that particular portion, known as a farm area. Licensees get to know almost every lot, house, and business in their farm areas. Farming involves maintaining data on each property, including when it was built, the sale history, typical marketing time, assessed value, the amount of property taxes, and so forth. Real estate professionals meet the people in the area and make it known that they specialize in that section of town. The farm area soon begins to produce a harvest in the form of listings and sales. Licensees create a reputation for expertise through hard work. When residents in the farm area move or decide to sell, they call on the area expert who knows what value their property will bring in the current market.
Comments(2)