Chapter 1 Flashcards
Is bringing together parties (the buyers and the sellers or the landlord and tenant) in a real estate transaction
Brokerage
The process of estimating the market value of real estate.
Appraisal
Provide independent advise to individuals and firms regarding the purchase and use of real estate investments.
Real Estate Counseling
includes instruction for both real estate practitioners and the general public.
Real Estate Education
an area of specialization in real estate services
Urban Planning
conduct a thorough survey of a commercial on residential property’s structure: its mechanical , plumbing and electrical systems, and site coordination.
Property Inspection
is the largest and best-known professional association in the real estate industry.
National Association of REALTORS (NAR)
registered trademark of NAR
REALTORS
Classes of Real Estate (5)
1) Residential
2) Commercial
3) Industrial
4) Agricultural
5) Special Purpose Real Estate
Includes single-family residences, condos, cooperatives, apartment, duplex and triplexes, town homes, and mobile homes
Residental
Used for business and includes retail stores and shopping malls office buildings theaters and parking lots.
Commercial
includes factories, warehouses, and research and development facilities
industrial
includes farms, orchards, timberland, ranches, and hatcheries
agriculture
Includes churches, government land, hospitals, and schools
Special Purpose Real Estate
describe the physical attributes of land
physical characteristics
Physical characteristics of real estate are: (3)
1) Immobility
2) Indestructibility
3) Non homogeneity
Affect the value of real estate
Economic Characteristics.
Economic Characteristics of real estate are (4)
1) Scarcity
2) Modification
3) Permanence of Investment (fixity)
4) Area Preference (situs)
Geographical location of the property always remains the same
Immobility
Land cannot be destroyed or worn out
Indestructibility (durability)
no parcel of real estate are exactly alike.
Non Homogeneity
Means that the supply of real estate is limited
Scarcity
states that changes in a parcel of land affect its value (both favorably or unfavorable)
Modifications (improvements)
means the investments in real estate are long term
Permanence of investment (fixity)
refers to peoples preference for a certain area
Situs (area Preference)
Prices increase when demand increases or supply decresses
Seller’s Market
Prices decrease when demand decreases or supply increases
Buyer’s Market
refers to the characteristics of the population: age distribution, family size, and population movements
demographics
indication of the demand for property in the area, and there may be several rates based on the type of property
Vacancy Levels
