Chapter 19: The Real Estate Market Flashcards

1
Q

The four agents of production are (CELL):

  1. ______
  2. ______
  3. ______
  4. ______
A

Capital
Entrepreneurial ability
Land
Labor

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2
Q

Supply of real estate includes vacant properties, under construction, permitted projects, and ______

A

announced projects

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3
Q

_______ is based on price, income, credit, population, and customer preference.

A

Demand

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4
Q

When there are more buyers than sellers, a ______ market exists.

A

Seller’s

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5
Q

Each parcel of land is _____ or _____. It is not a homogenous product.

A

Unique or different

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6
Q

Supply and demand in a residential market is thought to be balanced when a vacancy ratio is at ______.

A

5%

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7
Q

The real estate market is ______ in nature.

A

local

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8
Q

The influence of value based on location is called _____.

A

Situs

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9
Q

Combining two or more parcels is called _______.

A

Assemblage

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10
Q

If the combined value of two parcels is greater than their individual value, the increase is known as ______.

A

Plottage value

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11
Q

The real estate market is _____ to respond to demand.

A

slow

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12
Q

Neighborhood life cycle: growth period, stability, decline, and _________.

A

revitalization

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13
Q

Highest and best use is based on 4 criteria: legally permissible, physically possible, financially feasible, and ________.

A

maximally productive

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14
Q

The use that creates the highest return on the land is the _____ and _____ use.

A

highest and best

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15
Q

A ______ market exists when there is excess supply.

A

buyer’s

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16
Q

Social, economic, governmental, and environmental forces that affect real estate values are _______.

A

externalities

17
Q

In relation to real estate, increased productivity relates to greater efficiency in the use of ______.

A

Labor

18
Q

_______ is when families move into poorer communities and fix them up, outing the poorer residents.

A

entrification

19
Q

An abundance of for sale and rental signs may indicate a ______ in a neighborhood.

A

decline