Chapter 1 Flashcards
A professional opinion of a property’s market value, based on established methods and using trained, professional judgement, is performed by a:
A. Real estate broker
B. Real estate counselor
C. Real estate appraiser
D. Home inspector
Real estate counselor
In general, when the supply of a certain commodity increases,
A. Prices tend to rise
B. Prices tend to drop
C. Demand tends to rise
D. Demand is unchanged
Prices tend to drop
Which of these factors tends to affect supply in the real estate market?
A. Population
B. Demographics
C. Employment and wage levels
D. Government controls and financial policies
Government controls and financial policies
Which factor MOST likely influences the demand for real estate?
A. Labor force
B. Construction costs
C. Wage levels and employment opportunities
D. Government financial policies
Wage levels and employment opportunities
Property management, leasing, appraisal, financing, and development are all examples of:
A. Specializations within the real estate industry
B. Factors affecting demand
C. Non-real estate professionals
D. Government regulation of the real estate industry
Specializations within the real estate industry
A REALTOR is:
A. a specially licensed real estate broker
B. any real estate broker who assists buyers, sellers, landlords, or tenants in any real estate transaction
C. a member of the National Association of Real Estate Brokers who specializes in residential properties
D. a real estate licensee who is a member of the National Association of REALTORS.
A real estate licensee who is a member of the National Association of REALTORS
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?
A. Housing will become less expensive
B. Housing will become more expensive.
C. The announcement involves an issues of demographics, not a supply and demand issue; housing prices will stay about the same.
D. the announcement involves an industrial property; residential housing will not be affected.
Housing will become more expensive.
A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee’s profession?
A. Real estate appraiser
B. Real estate educator
C. Real estate counselor
D. REALTOR
Real estate counselor
The term REALTOR refers to:
A. any real estate licensee
B. a real estate licensee specializing in residential properties
C. a real estate educator
D. a member of the National Association of REALTORS
a member of the National Association of REALTORS
Schools are considered part of which real estate classification?
A. Special-purpose
B. Industrial
C. Commercial
D. Government-held
Special-purpose
When demand for a commodity decreases and supply remains the same,
A. price tends to rise
B. prices is not affected
C. price tends to fall
D. the market becomes stagnant
price tends to fall
The term appraisal is defined as the…
A. process of splitting a single property into smaller parcels
B. method of estimating a property’s market value based on established methods and the appraiser’s professional judgment
C. transfer of funds in the financing of real estate transactions
D. process of providing clients with competent independent advice
method of estimating a property’s market value based on established methods and the appraiser’s professional judgment
The Federal Reserve Board…
A. monitors the Federal Housing Administration
B. monitors nationwide construction costs
C. establishes a discount rate of interest for the money it lends to its member banks
D. establishes real estate appraisal standards
establishes a discount rate of interest for the money it lends to its member banks
All of these are categories of the uses of real property EXCEPT
A. developmental
B. residential
C. agricultural
D. industrial
developmental
All of these would affect overall demand in the real estate market EXCEPT…
A. population
B. demographics
C. wage levels
D. zoning ordinances
zoning ordinances
