Chapter 1: Introduction To The Real Estate Business

Question 1

General, when the supply of a certain commodity increases

Answer 1

Prices tend to drop

Question 2

Which factor tends to affect supply in the real estate market?

Answer 2

Government controls

Question 3

Which factor most likely influences the demand for real estate

Answer 3

Wage levels and employment opportunities

Question 4

Property management, leasing, appraisal, financing, and development are all examples of?

Answer 4

Specializations with in the real estate industry

Question 5

A realtor is?

Answer 5

Any real estate broker who assist buyers, sellers, landlords, or tenants in any real estate transaction

Question 6

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2000 employees, to a small town. What effect will this announcement most likely have on the small towns housing market?

Answer 6

Houses likely will become more expensive as a result of the announcement

Question 7

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 licensees profession?

Answer 7

Real estate counselor

Question 8

The word broker and realtor are?

Answer 8

Unrelated; a broker is a real estate licensee, a realtor is a member of the national Association of realtors

Question 9

Schools would be considered part of which real estate classification?

Answer 9

Special-purpose

Question 10

When demand for a commodity decreases and supply remains the same

Answer 10

Price tends to fall

Question 11

A licensed real estate professional acting as a point of contact between two or more people in negotiating the purchase of a property is known as?

Answer 11

Sponsoring broker

Question 12

What would affect supply?

Answer 12

Construction cost

Governmental controls

The labor force

Question 13

What would affect demand?

Answer 13

Population

Demographics

Wage levels

Question 14

A real estate professional who performs a visual survey of the property structure and systems and prepares and analytical report for a purchaser or an owner is acting as a?

Answer 14

Home inspector

Question 15

What happens when the supply of a commodity decreases while demand remains the same?

Answer 15

Prices tend to rise

Question 16

When responsible for maintaining a clients property and maximizing the return on the clients investment, a real estate licensee is serving as a?

Answer 16

Property manager

Question 17

Detailed information about the age, education, behavior, and other characteristics of members of a population group is called?

Answer 17

Demographics

Question 18

A professional estimate of the properties market value, based on established methods and using trained, professional judgment, is performed by a?

Answer 18

Real estate appraiser

Question 19

Warehouses, factories, and power plants are examples of?

Answer 19

Industrial properties

Question 20

Population demographics and wage levels have an important effect on?

Answer 20

Demand

Question 21

The two characteristics of real estate that govern the way the market reacts to supply and demand are?

Answer 21

Uniqueness and immobility

Question 22

Real estate markets are best described as?

Answer 22

Local

Question 23

When the supply of a commodity decreases

Answer 23

Prices tend to rise

Question 24

When the demand of a commodity decreases

Answer 24

Prices tend to drop

Question 25

A real estate professional who performs a visual survey of a property’s structure and systems and prepared an analytical report for a purchaser or an owner is acting as?

Answer 25

A home inspector

Question 26

When responsible for maintains a clients property and maximizing return on the clients investment, a broker is serving as?

Answer 26

A property manager