cp 1 Flashcards
real estate business
What service is provided by a Broker?
Brings parties together in a real estate transaction
Who brings parties together during a real estate transaction?
A broker
The ______ usually acts as an agent on behalf of the party or parties in negotiating the sale, purchase, or rental of the property.
Broker
What is an appraisal?
the process of estimating the market value of real estate.
appraisals are needed for what types of real estate activities?
lending, tax assessments and insurance adjusting
Do appraisers need to be licensed or certified to perform appraisals for federal related transactions?
YES
Who provides independent advice to individuals and firms regarding the purchase and use of real estate investments?
counselors
True or false counselors need an extensive knowledge of real estate, tax laws, and investing
true
Who needs an extensive knowledge of real estate, tax laws, and investing?
counselors
Who performs instruction in the form of courses and seminars and can be held at universities, community colleges, private schools and business organizations
Educators
Most real estate transactions require
Financing
what provider involves dividing larger parcels of land
property developer
what provider does not need to be a licensee
Property management
what service help tenants find rental units and landlords find tenants
rental finding services
who works with local governments making recommendations regarding new schools, parks, utilities , streets, and highways
urban planning
who constructs a thorough survey of a commercial or residential property; its mechanical, plumbing, and electrical systems and site conditions
property inspections
Real estate contracts are usually contingent on the
inspector’s report
What is the largest and best known professional association in the real estate industry?
National association of realtors (NARS)
The term REALTORS us a registered trademark of the?
NAR
What time of real estate includes single-family residence, condos, cooperatives, apartments, duplexes and triplexes, townhomes, and mobile homes?
Residential
what type of real estate is used for business and includes retail stores and shipping malls, office building, theaters, and parking lot?
Commercial
what type of real estate includes factories, warehouses and research and development facilities?
Industrial
what includes farms, orchards, timberland, ranches, and hatcheries?
Agricultural
all other types of property that do not fit other classes such as churches, government land, hospitals, and schools
special purpose
what are the five real estate classes
residential, commercial, industrial, agricultural, special purpose
What are the three physical characteristics of real estate?
immobility, indestrucibility, nonhomogenity
What are the four economic characteristics of real estate?
scarcity, modification (improvement), permanence of investment (fixity), area of preference (situs or location).
another term for permanence of investment
fixity
Another word for area of preference?
situs
location of land can not be changed
immobility
investments in land are long term
performance of investment
if supply is low and demand is high the price of real estate will? What kind of market
increase, sellers
if supply is high and demand is low the price of real estate will? What kind of market?
price will decrease, buyers
The economic characteristic of real estate that refers to the limited supply of land
scarcity
the physical characteristic of real estate that not two parcels of real estate are alike
nonhomogeneity
the physical characteristic of real estate that land cannot be destroyed
indestructability
when several different markets may operate in the same area
market segmentation
what are the three factors that affect the supply and demand on the supply side
labor, government control, and government financial policies
what are the three factors that affect the supply and demand on the demand side
population, demographics and employment and wages levels
a measure for the number of units that are not occupied
vacancy
the availability of carpenters and other workers
supply and labor
zoning laws regulating the the of real estate construction
gov control
divides real estate markets into submarkets
market segmentation
details the characteristics of the population
demographics
the quantity of housing available for sale
supply and demand
