Practice, Valuation, and Property Ownership
Practice and closing mechanics
Listing agreements come in three main shapes: exclusive right to sell (broker is paid no matter who procures the buyer), exclusive agency (owner retains the right to sell unrepresented), and open listing. Compare a CMA to an appraisal - the licensee offers a pricing opinion, never a certified valuation. In practice you will also handle buyer pre-approval, fair housing compliance, the final walk-through, and the settlement, where Ohio charges a conveyance fee of $1 per $1,000 of price (counties may add up to $3 per $1,000) and the grantor customarily pays.
Valuation
Three approaches: sales comparison for residences, cost (replacement cost minus depreciation, plus land) for special-use property, and income for investment property. Depreciation is physical, functional, or external. Two formulas earn easy points: gross rent multiplier equals price divided by monthly rent, and capitalization rate equals net operating income divided by price. Highest and best use is the filter applied before any approach.
Ownership and interests
Hold title as severalty, tenancy in common (no survivorship, unequal shares allowed), or joint tenancy with right of survivorship. Ohio uses a statutory survivorship tenancy for spouses and others, does not recognize tenancy by the entirety, and abolished dower in favor of a spousal elective share. Know easements appurtenant versus in gross, encroachments, deed restrictions, liens, fixtures, and the Ohio adverse-possession period of 21 years. Real property in Ohio is assessed for tax at 35 percent of market value.
Worked example
Net operating income of $24,000 on a $300,000 price gives a 8.0 percent cap rate. Trap: applying the cap rate to gross rent instead of NOI.