Chapter 16 Flashcards
A process for examining the demand for and supply of a property type and the geographic market area for that property type
Market analysis
Buyers and sellers of particular real estate and the transactions that occur among them.
Real estate market
The area associated with a subject property that contains its direct competition.
Market area
The objective analysis of observable and/or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values
Market area analysis
Study of the economy as an aggregate system, focusing on national/domestic production, national/domestic income, the supply of money, the rate of inflation, the national budget, the balance of trade, and the interrelationships among constituent sectors
Macroeconomics
The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment.
Microeconomics
A division of a total market that reflects the preferences of a particular set of buyers and sellers, e.g., fast food restaurants as a submarket of the overall restaurant market
Submarket
The process by which submarkets within a larger market are identified and analyzed
Market segmentation
The differentiation of a subject property from other properties on the basis of subclassifications with differing product characteristics
Disaggregation
Finding the existing supply is easier with a specific type of
commercial/industrial property
A macroeconomic analysis that examines the general market conditions of supply, demand, and pricing or the demographics of demand for a specific area or property type.
Market Study
The rate at which properties for sale or lease have been or are expected to be successfully marketed, sold, or leased in a given area over a duration of time
Absorption rate
The actual or expected period required from the time a property, group of properties, or commodity is initially offered for lease, purchase, or use by its eventual users until all portions have been sold or stabilized occupancy has been achieved
Absorption Period
A microeconomic study that examines the marketability of a given property or class of properties, usually focusing on the market segment(s) in which the property is likely to generate demand.
Marketability Study
This is a similar type of analysis that may be conducted by an appraiser as a service to an investor.
Feasibility Analysis
the value of a property to a particular investor, according to his or her own particular investment criteria.
Investment Value
Buyers and sellers of particular real estate and the transactions that occur among them” is the definition of a(n)
real estate market
What process would an appraiser use to identify submarkets within a larger market?
Market Segmentation
A process for examining the demand and supply of a property type and the geographic market area for that property type” is the definition of ____________ analysis.
Market
Which field of study focuses on the economy as an aggregate system, considering national/domestic income, the supply of money, the rate of inflation, and the national budget?
Macroeconomics
the area from where demand comes and that contains its competition
subject property’s market area
If you are trying to determine the number of existing single-family residences in a local municipality, your best source of this information would be
Existing stock
Why Availability of financing is part of supply analysis ?
builders and developers need to be able to obtain financing in order to build homes/buildings
Researching and analyzing the number of new building permits issued is primarily an element of __________ analysis.
supply
A large local employer announces plans for immediate expansion, which will add 400 new jobs. There are only 180 houses available for sale in the market at this time. What is MOST likely to happen in the near future?
Number of building permits issued will increase
A market analysis examines the supply and demand for ___________, while a marketability analysis examines ___________ .
a type of property
a specific property
Which of these would NOT be a submarket of the market for residential properties in Anytown, USA?
starter houses under $60,000
residential properties
rural houses
new houses
residential properties
“The differentiation of a subject property from other properties on the basis of subclassifications with differing product characteristics” is the definition of
aggregation
disaggregation
subdivision
layering
disaggregation
Which of the following would NOT be considered in supply analysis for a residential property?
income and wage levels
number of building permits recently issued
existing stock of homes
availability of financing
income and wage levels
“The rate at which vacant space in a property or group of properties has been or is expected to be successfully sold or leased over a specified period of time” is the definition of a(n) __________ rate.
feasibility
absorption
prime
saturation
absorption
“The study of the supply and demand in a specific area for a specific type of property” is the definition of
highest and best use analysis
economic base analysis
market analysis
marketability study
market analysis
“Buyers and sellers of particular real estate and the transactions that occur among them” is the definition of a(n)
market
real estate market
market area
market analysis
real estate market
Which of the following would NOT be considered in supply analysis?
existing stock
conversions in progress
properties offered for sale
population trends
population trends
The study of the economics of individual spheres of activity or patterns and behaviors, e.g., a firm, an industry, a retail market, a consumer segment, pricing, local employment is the definition of
Demographics
Microeconomics
Macroeconomics
Disaggregation
Microeconomics
