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Basic Appraisal Principles > Chapter 9 > Flashcards

Chapter 9 Flashcards

1
Q

A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them.

A

Market

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2
Q

In economic theory, the principle that states that the price of a commodity, good, or service varies directly, but not necessarily proportionately, with ____1___, and inversely, but not necessarily proportionately, with ____2___.

A
  1. Supply

2. Demand

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3
Q

a gathering of people for the buying and selling of things

A

Market

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4
Q

Buyers and sellers of particular real property and the transactions that occur among them

A

Real property Market

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5
Q

A market characterized by numerous transactions.

A

Active Market

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6
Q

A market in which buyers have the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demand.

A

Buyer’s Market

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7
Q

An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users.

A

Seller’s Market

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8
Q

A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices.

A

Depressed Market

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9
Q

According to the principle of supply and demand, the price of a commodity varies ___________ with supply.

proportionately
independently
inversely
none of the above

A

Inversely

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10
Q

“A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them” is the definition of

exchange rate
marketing plan
exchange
market

A

Market

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11
Q

The principle of supply and demand states that the price of a commodity varies ________ with demand.

proportionately
directly
independently
none of the above

A

Directly

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12
Q

a mechanism for bringing together buyers and sellers. It may or may not be in a particular physical location

A

A market

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13
Q

Buyers and sellers of particular real estate and the transactions that occur among them.

A

Real Estate Market

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14
Q

The problem with the real estate market is

A

Demand high, supply can be low or slow to change

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15
Q

The real estate market is

perfect
imperfect
stable
unstable

A

imperfect

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16
Q

A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.

A

Neighborhood

17
Q

A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural.

A

District

18
Q

The area associated with a subject property that contains its direct competition.

A

Market Area

19
Q

Some national trends have contributed to the decline of values in a particular area
the Great Depression
emigration to the South and West
post World War II construction

A

Long-term cycles

20
Q

Two factors are typically responsible for ________: the level of interest rates, and the amount of credit available.
availability of mortgages

A

Short-Term cycles

21
Q

The principle of supply and demand states that the price of a commodity varies ________ with demand.

A

Directly

22
Q

Because real estate is immobile, it is

A

Sensitive to nearby influences

23
Q

What is the supply of real estate in a market?

A

The existing stock of parcels of real estate

24
Q

A real estate market is defined in terms of

A

Market Boundaries

25
Q

When supply and demand are out of balance, they tend to move towards

A

Equilibrium

26
Q

True or False? Real property is typically purchased with cash.

A

False

27
Q

“The area associated with a subject property that contains its direct competition” is the definition of

A

Market Area

28
Q

Which of these is NOT a characteristic of an efficient market?

homogeneous product
stable prices
immobility of product
large number of buyers and sellers

A

Immobility of a product

29
Q

“A market in which product differentiation exists, there is a lack of important product or market information, and some of the producers and/or consumers are significant enough to affect the price and quantity of goods by their actions alone” is the definition of a(n) ____________ market.

perfect
distressed
imperfect
buyer’s

A

Imperfect

30
Q

“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” is the definition of

neighborhood
district
market
central business district

A

District

31
Q

“An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users” is the definition of a(n) __________ market.

buyer’s
seller’s
declining
depressed

A

Seller’s

32
Q

All of the following would be participants in the real property market EXCEPT

real estate agents
attorneys
developers
economists

A

Economists

33
Q

“A market characterized by numerous transactions.” is the definition of a(n) _________ market.

buyer’s
seller’s
active
depressed

A

active

34
Q

Real property is unique as an economic good in that it is

immovable
impossible to finance
stably priced
homogeneous

A

immovable

35
Q

A real estate market is defined in terms of __________.

physical factors
supply
external factors
competition

A

competition

36
Q

A problem with the real property market is that the amount of _______ is slow to change.

supply
demand
supply and demand
new customers

A

supply

Basic Appraisal Principles (19 decks)

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