MRE_Chapter1

Question 1

Real Estate Specialization

Answer 1

1. Brokerage 2. Appraisal 3. Property Management 4.Financing 5. Subdivision and development 6. Home Inspection 7. Counseling 8. Education 9. Others

Question 2

NAR

Answer 2

National Association of Realtors : Largest trade organization, comprises state, regional and local associations

Question 3

Types of Properties

Answer 3

1. Residential 2. Commercial 3. Industrial 4. Mixed-Use : High rise residential properties 5. Agricultural 6. Special Purpose

Question 4

Supply & Demand characteristics

Answer 4

The economic forces set Prices for products 1. Characteristics of real estate affecting Supply & Demand are a. Uniqueness b. Immobility c. Effect of natural disasters or changes in financial markets or local events 2. Prices will generally drop as supply increases 3. Prices will generally rise as demand increases

Question 5

Factors Affecting Supply

Answer 5

1. Labor force 2. Construction and material costs 3. Government controls at all levels 4. Government financial policies

Question 6

Factors Affecting Demand

Answer 6

1. Population 2. Demographics : the make-up of the population including mobility, financial stability and size & nature of family unit 3. Employment and wage levels