Chapter 1 Flashcards
Brokerage
Is the business of bringing people together in real estate transactions.
A Real Estate Licensee
Acts as a point of contact between two or more people in negotiating the sale, purchase or rental of property. A Real Estate licensee May be the agent for the buyer, for the seller, or for both. The property may be residential, commercial, or industrial.
Sponsoring Broker
All licensees are employed by the above and conduct brokerage services on behalf of that sponsoring broker.
Managing broker
Who may or may not be the owner, must be designated to supervise the licensees and run the office.
Appraisal
Is the process of rendering opinion of a property’s market value based on stablished methods and the appraisers professional judgment
Property Management
Is a person or company hired to maintain and manage property on behalf on his owner.
Financing
Is the business of providing the funds that make a real estate transactions possible.
Subdivision and Development
Subdivisions Is the splitting of a single property into smaller parcels.
Development involves the construction of improvements on the land
Home inspection
Is a profession that allows practitioners to combine their interest in real state with their their professional skills and training in the construction trades or in engineering.
Professional home inspectors conduct a thorough visual survey of a property structure, systems, and site conditions and prepare an analytical report that is valued to both purchasers and homeowners.
(Always do an inspection)
Counseling
Involves providing clients with competent independent advice based on sound professional judgment.
Education
Real estate education is available to both practitioners and consumers.
Auctioning
Buying or selling real estate at auction uses an open and competitive bidding process to transfer property.
Types of real property:
Residential
Commercial
Industrial
Agrícultural
Special purpose- churches or places or worship, schools, cementeries, and the government-held lands
Market
Is a place where goods can be bought and sold. A market may be a specific place, such as the village square, or it may be a vast, complex, worldwide economic system for moving goods and services.
Supply and Demand
The forces of supply and demand in the market determine how prices for goods and services are set. Essentially, when supply increases and demand remains stable stable, prices go down; when demand increases and supply remains stable, prices go up.
Five factors that affect the supply of Real Estate
Labor force
Construction costs
Government controls
Government financial policies
Labor Force
Construction
A shortage of skilled labor or holding materials or an in erase in the cost of materials can decrease the amount of new construction.
Construction permits fees and high property transfer costs can also discourage development.
Government controls and Financial Policies
The government’s monetary policy can have a substantial impact on the real estate market. The Federal Reserve establishes a discount rate of interest for the money it lends to its member banks
Factors affecting demand
Population : shelter is a basic human need, so the demand for housing grows with the population
Demographics : is the study and description of population
Employment and wage levels: Decisions about whether to buy or rent and how much to spend on housing are closely related to income. When job opportunities are are scarce or wage levels low, demand for real estate.
A professional opinion of a property’s market value, based on established methods and using trained, professional judgment, is performed by a
Real Estate appraiser
In general, when the supply of a certain commodity increases
Prices tend to drop
Which of these factors tends to affect supply in the real estate market?
Government controls and financial policies.
Which factor MOST likely influences the demand for real estate?
Wage levels and employment opportunities.
Property management, leasing, appraisal, financing, and development are all examples of
Specialization within the real estate industry.
A REALTOR is
A real estate licensee who is a member of the National Association of REALTORS.
A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this license helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee’s profession?
Real Estate counselor
The term REALTOR refers to
a member of the national Association of REALTORS.
Schools are consider part of which real estate classification
Special-purpose.
When demand for commodity decreases and supply remains the same
Price tends to fall.
The term appraisal is defined as the
A method of estimating a property’s market value based on established method’s and the appraiser’s professional judgement.
The Federal Reserve Board
Establishes a discount rate of interest for the money it lends to its member banks.
All of these are categories forge uses of real property EXEPT
Development
All of these would affect overall demand in the real estate market EXEPT
Zoning ordinances
Local government can influence the supply of real estate by
land-use controls.
Zoning ordinances.
Building codes.
A real estate professional who performs a visual survey of a property’s structure and systems and prepares an analytical report for a purchaser or an owner is acting as
A home inspector
When responsible for maintaining a client’s property and maximizing the return on the clients ‘s investment, a real estate licensee is serving as
A property manager
Detailed information about the age, education, behavior, and other characteristic’s of members of a populations group is called
Demographics.
