Practice Flashcards
A person who conducts activities on behalf of a broker is called a(n) ___.
Salesperson
Appraisers must have detailed knowledge of the methods of property ___.
Value
Real estate professionals keep their skills and knowledge current by obtaining ___.
Continuing education
A single-family home is a type of ___ property.
residential
If the supply of a single-family home goes up and a major local employer lays off a large number of workers, the price of real estate tends to ___.
Decrease
The splitting of a single piece of property into smaller parcels is called ___.
Subdivision
Niche marketing refers to the targeted marketing of specific ___ populations.
Demographic
A tax ___ for mortgage interest payments is a benefit of home ownership.
deduction
A community implements land-use restrictions so that less vacant land is available for residential development. At this time, demand for housing increases due to higher population. Prices for real estate will tend to ___.
increase
A ___ is a person or company licensed to represent others in the purchase, sale, exchange, or lease of real property.
Broker
A ___ is a place where goods are bought and sold and a price for the goods is established.
market
Real estate markets are ___ markets.
local
Even if two parcels appear identical, they are never exactly alike because of this quality: ___.
uniqueness
A ___ is a person who performs real estate activities while employed by, or associated with, a licensed real estate broker.
salesperson
An owner of this type of housing owns an individual unit and also shares ownership of common facilities: ___.
Condominium
___ is a real estate specialty that involves maintaining and administering another’s property for a fee.
property management
___ is the process of using established methods and good judgement to form an opinion of the value of a property
appraisal
The bringing together of parties interested in making a real estate transaction
Brokerage
The characteristic of real estate that refers to the fact that property cannot be relocated elsewhereis ___.
Immobility
A report based on visual survey of property structure, systems, and side conditionsis a(n) ___.
home inspection
___ is the provision of a dwelling place for purchase or rental without discrimination based on an individual’s race, color, national origin, religion, sex, familial status, or disability.
Fair housing
The 5 classes of real estate are…
Residential
Commercial
Industrial
Agricultural
Special purpose
Rental is a class of real estate. True or false?
False
Because of real estate’s ___ and ___, the market generally adjusts slowly to the forces of supply and demand.
Uniqueness and immobility
The real estate market generally adjusts ___ to the forces of supply and demand.
Slowly
Supply of labor generally has an effect on the ___ of real estate in a market
supply
Cost of construction generally has an effect on the ___ of real estate in a market.
supply
Brokerage is the only specialty in real estate. True or false?
False
Appraisal and home inspection are…
Specialties in real estate
Financing is a(n)…
specialty in real estate
Property managers do not need to be overseen by a sponsoring broker. True or false?
False
Residential leasing agents need to be overseen by a sponsoring broker. True or false?
True
Warehouses are an example of ___ property.
industrial
Factories are an example of ___ property.
industrial
power plants are an example of ___ property.
industrial
Real estate professionals generally tend to specialize in one activity or class of real estate. True or false?
True
The amount invested in a property is the owner’s ___.
Equity
In general, the most widely recognized real estate activity is ___.
Brokerage
Finding funds to put together real estate transactions is called ___.
Financing
Real estate counseling is a(n)…
specialty in real estate
Real estate education is a(n)…
specialty in real estate
___ involves forming an opinion of value of the property.
Appraisal
Market trends in ___ can be overturned by a natural disaster such as an earthquake.
supply & demand
When job opportunities are scarce, demand for real estate tends to ___.
Decrease
When employment wages are increased in an area, the demand for real estate tents to ___.
Increase
A major employer moving into an area or shutting down can drastically affect ___ in the real estate market
demand
Retail space is an example of ___ property.
Commercial
Dormitories are an example of ___ property.
Special purpose
A married couple filing jointly on their tax return can exclude up to ___ of profit from capital gains tax.
$500,000
A single tax filer is entitled to exclude up to ___ from capital gains tax
$250,000
A single filer can exclude up to $250,000, and a married couple can exclude up to $500,000 from ___.
Capital gains tax
Demographics have an affect on ___ in real estate.
Demand
When the population of a town suddenly increases, prices in real estate tend to ___.
Increase
___ refers to the fact that each parcel of real estate occupies its own individual geographic location.
Uniqueness
Government controls affect the ___ of real estate.
Supply
Local zoning ordinances affect the ___ of real estate
Supply
Local building codes affect the ___ of real estate.
Supply
Government financial policies affect the ___ of real estate.
Supply
A ___ examines property and reports problems.
Home inspector
A ___ improves property.
Developer
___ improvements are developed on public lands
offsite
___ improvements are developed within the property.
onsite
Roads are ___ improvements.
onsite
Sewers are ___ improvements
offsite
Water lines are ___ improvements
offsite
A building is an ___ improvement.
onsite
A fence is an ___ improvement
onsite
When the supply of a certain commodity ___ while demand remains the same, prices of that commodity tend to increase.
Decreases
When consumers continue to demand a product for which there is limited supply, prices generally ___.
Increase
The ___ is the largest trade organization serving the real estate business.
National Association of REALTORS®
Wastelands are a category of real property. True or false?
False
Timberlands are an example of ___ property.
Agricultural
The forces of ___ in the market determine how prices for goods and services are set.
Supply & demand
Market trends in supply and demand can be ___ by a natural disaster, such as a hurricane or earthquake.
overturned
What is a realtor?
A member of the National Association of Realtors
What 4 factors affect demand in real estate?
Population
Demographics
Employment opportunities
Wage levels
High supply = ___ prices
Low
Low supply = ___ prices
High
Higher demand = ___ prices
High
Low demand = ___ prices
Low
Local governments can influence ___ in the real estate market.
Supply
Land-use controls influence ___ in the real estate market
supply
What 4 factors affect supply in the real estate market?
Skilled labor force
Construction costs
Government controls
Government financial policies
Policies on the taxation of real estate have significant and complex effects on the ___ of real estate.
Supply
The Federal Reserve has an effect on the force of ___ in the real estate market.
Supply
The ___ establishes a discount rate of interest for the money it lends out to its member banks.
Federal Reserve
___ rates established by the Federal Reserve have an impact on the rates member banks charge to borrowers.
Interest
___ involves marketing to a specific generation
Niche Marketing
A real estate agent advertises that she is bilingual in both English and Spanish and therefore can provide services to Hispanic clients who may only be fluent in Spanish without needing a translator. What is the real estate agent doing?
Niche Marketing
Family size is an example of ___.
Demographics
An apartment complex is an example of ___ property.
Residential
Jewel Osco is an example of ___ property.
Commercial
Union Station is an example of ___ property.
Special Purpose
A bowling alley would be considered as ___ property.
Commercial
The ratio of adults to children in a household is an example of ___.
Demographics
A local elementary school recently constructed a playground that is wheelchair accessible. A real estate agent purchases an advertisement on a billboard next to a local pediatric physical therapy clinic, advertising that she is selling homes in the same neighborhood where this school is located. What is this an example of?
Niche marketing
The person who is the point of contact between two or more parties in negotiating the sale, purchase, or rental of real estate is a ___.
Real Estate Licensee
All real estate licensees are employed by a ___.
Sponsoring broker
Who oversees services conducted by real estate licensees?
Sponsoring broker
___ brings together tenants and prospective rental properties
Residential leasing agents
The ___ is responsible for the actions of all licensees working under the umbrella of the firm.
Sponsoring broker
Real estate licensees conduct services on behalf of a ___.
Sponsoring broker
A professional ___ substantiates the sales price of a home and assists the lender in determining the maximum loan amount.
appraisal
Appraisal is the process of rendering an opinion of a property’s ___.
Value
Most real estate transactions are financed by means of ___ or ___.
Mortgage loans
Trust deed loans
What establishes minimum education requirements for obtaining and keeping a real estate license?
State licensing laws
Members of the National Association of Realtors must subscribe to a(n)…
Code of ethics
___ property includes all property used for housing.
Residential
___ property is business property.
Commercial
___ property includes government held lands.
Special purpose
Fred owns a property in Dekalb. On this property, he raises chickens for eggs, raises cows for milk, and plants fields of corn and wheat. He sells the products that he produces to a local supermarket. What type of property does Fred own?
Agricultural
McDonalds is an example of ___ property.
Commercial
The real estate market can be subdivided into the ___ market and the ___ market.
Sales market
Rental Market
The ___ market involves the transfer of a title and ownership rights
Sales market
The ___ market involves temporarily leasing space to tenants
Rental
How many categories of real property do real estate licensees generally choose to specialize in?
One
What establishes market value?
Supply & Demand
