We will name this field "Property Type 1", as we'll probably want to do a second field just like it named "Property Type 2" for those buyers who say "I'd like a condo or a single family home." Here are the steps:
Select the center "Value" tab if not already done.
Click on the "New..." button.
In the popup box, type the name "Property Type 1" and leave the other two selections as "Text".
After OK, you're back to the Value box. Make sure that the List Type is "Dropdown" and the Property to use: is "Value".
Leave this box open and go to the next step.