Basic Real Estate Concepts Flashcards
Which of the following BEST defines real estate?
A) Land and the air above it
B) Land and the buildings permanently affixed to it
C) Land and all things permanently affixed to it
D) Land and the mineral rights in the land
Which of the following BEST defines real estate?
C- Land and all things permanently affixed to it?
Which of the following is NOT a physical characteristic of land?
a) Indestructibility
b) Scarcity
c) Immobility
d) Uniqueness
Which of the following is NOT a physical characteristic of land?
A- Indestructibility
In North Carolina, the term provisional broker refers to
a) a REALTOR
b) a licensee who must operate under the supervision of the broker-in-charge.
c) a licensee who must focus on a specialty area of real estate.
d) an individual who has invested in real estate.
In North Carolina, the term provisional broker refers to
B- a licensee who must operate under the supervision of the broker-in-charge
Situs refers to
A) View from the property
B) Improvements made to the building site
C) Societal factors that are related to the location
D) Immobility of real estate
Situs refers to
C- Societal factors that are related to the location
Which of the following is NOT an economic characteristic of real estate? A) Indestructibility B) Scarcity C) Permanence of improvement D) Location
Which of the following is NOT an economic characteristic of real estate?
C-Permanence of improvement
Which of the following physical and economic factors would a land developer take into consideration when determining the optimum use of a parcel of land? A) Transportation B) Available natural resources C) Contour and elevation D) All of these
Which of the following physical and economic factors would a land developer take into consideration when determining the optimum use of a parcel of land?
D- All of these
A theater or hotel would be classified under the real estate category of? A) Residential B) Commercial C) Agricultural D) Industrial
A theater or hotel would be classified under the real estate category of?
B- Commercial
The demand for real estate is influenced by the ?
A) number of real estate brokers in the area.
B) Ethnic makeup of neighborhoods.
C) Wage levels and employment opportunities in the area.
D) Price of new homes being built in the area versus the price of existing homes.
The demand for real estate is influenced by the ?
D- Prices of new homes being built in the area versus the price of existing homes.
The designation REALTOR refers to
I. any licensed real estate broker.
II. an active member or the National Association of Realtors
A) I only
B) II only
C) Both I & II
D) Neither I nor II
The designation REALTOR refers to
I. any licensed real estate broker.
II. an active member or the National Association of Realtors
C- Both I & II
Which of the following statements is/are TRUE of business cycles?
I. Business cycles involve periods of expansion, recession, depression, & revival.
II. The real estate business cycle is quicker to recover from depressed times than other business sectors.
A) I only
B) II Only
C) Both I & II
D) Neither I nor II
Which of the following statements is/are TRUE of business cycles?
I. Business cycles involve periods of expansion, recession, depression, & revival.
II. The real estate business cycle is quicker to recover from depressed times than other business sectors.
A) I only
All of the following factors tend to affect supply EXCEPT A) the labor force. B) construction cost C) government controls D) Demographics
All of the following factors tend to affect supply EXCEPT
D) demographics
Real Estate can be a poor investment if
A) the inflation rate is high
B) the investor plans to hold the investment for a long time.
C) the investor needs ready cash.
D) Land values are appreciating in the area.
Real Estate can be a poor investment if
C- The investor needs ready cash
In general, when the supply of a certain commodity increases, prices A) tend to rise B) tend to drop. C) tend to stablize D) can no longer be established.
In general, when supply of a certain commodity increases, prices
C tend to stabilize
In general terms, a market refers to which of the following?
A) Place where goods are standardized for sale
B) Amount of goods available at a given price
C) Quality of goods to the public
D) Place where the value of goods is established
In general terms, a market refers to which of the following?
D) Place where the value of goods is established
The demand of real estate in a particular community is LEAST affected by A) Population B) Wage Level C) Employment D) International Trade
The demand of real estate in a particular community is LEAST affected by
D- International trade
The Real estate market is considered local in character for all the following reason EXCEPT
A) Land is fixed or immobile
B) Consumers generally invest in real estate that is near their home or work.
C) Local controls can have a significant impact on the market
D) most people eagerly visit and invest in real estate in distant areas.
The Real estate market is considered local in character for all the following reason EXCEPT
D- Most people eagerly visit and invest real estate in distant areas
Highest and best use of real estate will A) Maximize the property's value. B) Stay constant throughout time. C) always be the property's current use. D) not be affected by local economic trends.
Highest and best use of real estate will
A- Maximize the property’s value.
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effects will this announcement MOST likely have on the small town’s housing market?
A) Houses will likely become less expensive as a result of the announcement.
B( Houses will likely become more expensive as a result of the announcement.
C) Because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same.
D) The announcement involves an industrial property; residential housing will not be affected.
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effects will this announcement MOST likely have on the small town’s housing market?
B( Houses will likely become more expensive as a result of the announcement.
A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called. A Physical deterioration. B) Area Preference C) Permeance of investment D) Immobility
A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property’s location is called.
B ) Area Preference
A professional estimate of a property's market values, based on established methods and using trained judgement, is performed by a a) Real estate appraiser b) real estate broker. C) real estate counselor d) home inspector
A professional estimate of a property’s market values, based on established methods and using trained judgement, is performed by a
A) real estate appraiser
