Basic Terms Flashcards
Appraisal
An opinion of value of adequately defined real property as of a specified date, supported by objective market data.
Buyer’s Market
A situation in the housing market where there are many homes available for sale, but few buyers.
Commission
Compensation paid to a broker for services in a real estate transaction; usually a percentage of the sales price.
Economic Base
The main business or industry in an area that a community uses to support and sustain itself.
Inflation
An increase in the cost of goods or services; or too much money chasing too few goods.
Interest Rate
The cost that people or businesses must pay to use another’s money for their own purposes.
Listing Agreement
A written agency contract between a seller and a real estate broker stipulating the broker will be paid a commission for finding (or attempting to find) a buyer for the seller’s real property.
Multiple Listing Service (MLS)
A cooperative service whereby local member brokers agree to share listings, show properties, and share commissions on jointly sold properties.
Principal Residence
A person’s primary dwelling place
Property Management
Leasing or renting, or offering to lease or rent real property of others for a fee, commission, compensation, or other valuable consideration pursuant to a property management employee contract.
Real Estate Cycles
General swings in real estate activity, resulting in increasing or decreasing activity and property values, during different phases of the cycle.
REALTOR®
A trademarked name for a member of the National Association of REALTORS® and its state and local affiliates.
Seller’s Market
A situation in the housing market when sellers can choose from a large number of buyers looking for houses in an area.
Supply and Demand
An economic principle that says that for all products, goods, and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices will rise.
