Ch 15 The real estate market and analysis Flashcards
True or false, non-homogenous means that no two parcels are alike.
True
True or false, highest and best use is fundamentally determined by alternate types of potential users bidding for a site in accordance with the locational and environmental value of the sit in each use.
True
True or false, the definition of situs involves a buyer’s personal preference for location, accessibility, and features.
True
True or false, a buyers market exists when there are more buyers (demand) then available real estate for sale.
False
A sellers market exists when there are more buyers (demand) then available real estate for sale.
True or false, the entire property including building structures and the land are calculated into depreciation.
False
Land is durable and is not calculated into depreciation formulas.
True or false, a physical characteristic of real estate is the fact that real estate is immobile. Simply put it doesn’t move.
True
True or false,Demand for real estate is inverse to price. As the price comes down demand rises. As the price rises the demand goes down.
True
True or false, real estate is generally quick to respond to changes in supply and demand.
False
Real estate is generally slow to respond to changes in supply and demand.
True or false, there is a relationship between supply, demand and price. The more real estate that is available, the less demand there is for each individual parcel. Prices and turn go up.
False
Prices in turn go down
True or false, when the mortgage credit market tightens up, let’s are able to qualify for a mortgage, increasing demand for houses.
False
It decreases demand for housing
What are the factors that do not influence demand?
Availability of land
Price of real estate
Consumer tastes and preferences
Availability of mortgage credit
Availability of land
The occupancy rate of Fred’s complex was 75%. There were 312 units. How many units were filled?
243
416
234
250
234
Market indicators include all the following except:
Vacancy rates
Depreciation
Price/sales information
Building permits
Depreciation
The economic characteristics of real estate include all of the following except:
There is no relationship between supply, demand, and price
The fact that the market is slow to respond to change in supply and demand
Demand driven by consumer preference
Supply driven by availability
There is no relationship between supply, demand, and price
400 units are rented out of 450 total units. What is the occupancy rate?
89%
11%
72%
66%
89%
The fact that land influenced by changes in the surrounding area describes?
Immobility of real estate
Indestructibility of land
Land is unique
Governmental control through zoning, building codes, taxes, etc.
Immobility of real estate
Supply is described as:
How much real estate is available at any one time
Has no effect on price
Willing and able buyers and renters looking for property in a given area
Unrelated to pricing by having too many bidding on same property, or too few
How much real estate is available at any one time
Which of the following is a physical characteristic of land?
Supply is driven by availability
The fact that demand is driven by consumer preference
The fact that real estate is non-homogenous
The fact that the market is slow to respond to change in supply and demand
The fact that real estate is non-homogenous
Government controls influence the market to all the following except:
Limitations on how he property can be used
Standards for building size, placement and safety
Tax assessment affect purchase decisions
The value of a site in its current highest and best use
The value of a site in its current highest and best use
Rusty managed an apartment building that had 25 total units. 20 of the units were rented. Calculate the vacancy rate.
80%
20%
75%
25%
20%
5 unoccupied units/25 total units = .2 or 20% vacancy rate
