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Unit 1: Intro to the Real Estate Business > Practice > Flashcards

Practice Flashcards

1
Q

A person who conducts activities on behalf of a broker is called a(n) ___.

A

Salesperson

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2
Q

Appraisers must have detailed knowledge of the methods of property ___.

A

Value

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3
Q

Real estate professionals keep their skills and knowledge current by obtaining ___.

A

Continuing education

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4
Q

A single-family home is a type of ___ property.

A

residential

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5
Q

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 ___.

A

Decrease

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6
Q

The splitting of a single piece of property into smaller parcels is called ___.

A

Subdivision

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7
Q

Niche marketing refers to the targeted marketing of specific ___ populations.

A

Demographic

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8
Q

A tax ___ for mortgage interest payments is a benefit of home ownership.

A

deduction

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9
Q

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 ___.

A

increase

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10
Q

A ___ is a person or company licensed to represent others in the purchase, sale, exchange, or lease of real property.

A

Broker

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11
Q

A ___ is a place where goods are bought and sold and a price for the goods is established.

A

market

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12
Q

Real estate markets are ___ markets.

A

local

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13
Q

Even if two parcels appear identical, they are never exactly alike because of this quality: ___.

A

uniqueness

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14
Q

A ___ is a person who performs real estate activities while employed by, or associated with, a licensed real estate broker.

A

salesperson

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15
Q

An owner of this type of housing owns an individual unit and also shares ownership of common facilities: ___.

A

Condominium

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16
Q

___ is a real estate specialty that involves maintaining and administering another’s property for a fee.

A

property management

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17
Q

___ is the process of using established methods and good judgement to form an opinion of the value of a property

A

appraisal

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18
Q

The bringing together of parties interested in making a real estate transaction

A

Brokerage

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19
Q

The characteristic of real estate that refers to the fact that property cannot be relocated elsewhereis ___.

A

Immobility

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20
Q

A report based on visual survey of property structure, systems, and side conditionsis a(n) ___.

A

home inspection

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21
Q

___ 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.

A

Fair housing

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22
Q

The 5 classes of real estate are…

A

Residential
Commercial
Industrial
Agricultural
Special purpose

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23
Q

Rental is a class of real estate. True or false?

A

False

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24
Q

Because of real estate’s ___ and ___, the market generally adjusts slowly to the forces of supply and demand.

A

Uniqueness and immobility

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25
Q

The real estate market generally adjusts ___ to the forces of supply and demand.

A

Slowly

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26
Q

Supply of labor generally has an effect on the ___ of real estate in a market

A

supply

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27
Q

Cost of construction generally has an effect on the ___ of real estate in a market.

A

supply

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28
Q

Brokerage is the only specialty in real estate. True or false?

A

False

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29
Q

Appraisal and home inspection are…

A

Specialties in real estate

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30
Q

Financing is a(n)…

A

specialty in real estate

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31
Q

Property managers do not need to be overseen by a sponsoring broker. True or false?

A

False

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32
Q

Residential leasing agents need to be overseen by a sponsoring broker. True or false?

A

True

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33
Q

Warehouses are an example of ___ property.

A

industrial

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34
Q

Factories are an example of ___ property.

A

industrial

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35
Q

power plants are an example of ___ property.

A

industrial

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36
Q

Real estate professionals generally tend to specialize in one activity or class of real estate. True or false?

A

True

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37
Q

The amount invested in a property is the owner’s ___.

A

Equity

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38
Q

In general, the most widely recognized real estate activity is ___.

A

Brokerage

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39
Q

Finding funds to put together real estate transactions is called ___.

A

Financing

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40
Q

Real estate counseling is a(n)…

A

specialty in real estate

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41
Q

Real estate education is a(n)…

A

specialty in real estate

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42
Q

___ involves forming an opinion of value of the property.

A

Appraisal

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43
Q

Market trends in ___ can be overturned by a natural disaster such as an earthquake.

A

supply & demand

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44
Q

When job opportunities are scarce, demand for real estate tends to ___.

A

Decrease

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45
Q

When employment wages are increased in an area, the demand for real estate tents to ___.

A

Increase

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46
Q

A major employer moving into an area or shutting down can drastically affect ___ in the real estate market

A

demand

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47
Q

Retail space is an example of ___ property.

A

Commercial

48
Q

Dormitories are an example of ___ property.

A

Special purpose

49
Q

A married couple filing jointly on their tax return can exclude up to ___ of profit from capital gains tax.

A

$500,000

50
Q

A single tax filer is entitled to exclude up to ___ from capital gains tax

A

$250,000

51
Q

A single filer can exclude up to $250,000, and a married couple can exclude up to $500,000 from ___.

A

Capital gains tax

52
Q

Demographics have an affect on ___ in real estate.

A

Demand

53
Q

When the population of a town suddenly increases, prices in real estate tend to ___.

A

Increase

54
Q

___ refers to the fact that each parcel of real estate occupies its own individual geographic location.

A

Uniqueness

55
Q

Government controls affect the ___ of real estate.

A

Supply

56
Q

Local zoning ordinances affect the ___ of real estate

A

Supply

57
Q

Local building codes affect the ___ of real estate.

A

Supply

58
Q

Government financial policies affect the ___ of real estate.

A

Supply

59
Q

A ___ examines property and reports problems.

A

Home inspector

60
Q

A ___ improves property.

A

Developer

61
Q

___ improvements are developed on public lands

A

offsite

62
Q

___ improvements are developed within the property.

A

onsite

63
Q

Roads are ___ improvements.

A

onsite

64
Q

Sewers are ___ improvements

A

offsite

65
Q

Water lines are ___ improvements

A

offsite

66
Q

A building is an ___ improvement.

A

onsite

67
Q

A fence is an ___ improvement

A

onsite

68
Q

When the supply of a certain commodity ___ while demand remains the same, prices of that commodity tend to increase.

A

Decreases

69
Q

When consumers continue to demand a product for which there is limited supply, prices generally ___.

A

Increase

70
Q

The ___ is the largest trade organization serving the real estate business.

A

National Association of REALTORS®

71
Q

Wastelands are a category of real property. True or false?

A

False

72
Q

Timberlands are an example of ___ property.

A

Agricultural

73
Q

The forces of ___ in the market determine how prices for goods and services are set.

A

Supply & demand

74
Q

Market trends in supply and demand can be ___ by a natural disaster, such as a hurricane or earthquake.

A

overturned

75
Q

What is a realtor?

A

A member of the National Association of Realtors

76
Q

What 4 factors affect demand in real estate?

A

Population
Demographics
Employment opportunities
Wage levels

77
Q

High supply = ___ prices

A

Low

78
Q

Low supply = ___ prices

A

High

79
Q

Higher demand = ___ prices

A

High

80
Q

Low demand = ___ prices

A

Low

81
Q

Local governments can influence ___ in the real estate market.

A

Supply

82
Q

Land-use controls influence ___ in the real estate market

A

supply

83
Q

What 4 factors affect supply in the real estate market?

A

Skilled labor force
Construction costs
Government controls
Government financial policies

84
Q

Policies on the taxation of real estate have significant and complex effects on the ___ of real estate.

A

Supply

85
Q

The Federal Reserve has an effect on the force of ___ in the real estate market.

A

Supply

86
Q

The ___ establishes a discount rate of interest for the money it lends out to its member banks.

A

Federal Reserve

87
Q

___ rates established by the Federal Reserve have an impact on the rates member banks charge to borrowers.

A

Interest

88
Q

___ involves marketing to a specific generation

A

Niche Marketing

89
Q

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?

A

Niche Marketing

90
Q

Family size is an example of ___.

A

Demographics

91
Q

An apartment complex is an example of ___ property.

A

Residential

92
Q

Jewel Osco is an example of ___ property.

A

Commercial

93
Q

Union Station is an example of ___ property.

A

Special Purpose

94
Q

A bowling alley would be considered as ___ property.

A

Commercial

95
Q

The ratio of adults to children in a household is an example of ___.

A

Demographics

96
Q

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?

A

Niche marketing

97
Q

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 ___.

A

Real Estate Licensee

98
Q

All real estate licensees are employed by a ___.

A

Sponsoring broker

99
Q

Who oversees services conducted by real estate licensees?

A

Sponsoring broker

100
Q

___ brings together tenants and prospective rental properties

A

Residential leasing agents

101
Q

The ___ is responsible for the actions of all licensees working under the umbrella of the firm.

A

Sponsoring broker

102
Q

Real estate licensees conduct services on behalf of a ___.

A

Sponsoring broker

103
Q

A professional ___ substantiates the sales price of a home and assists the lender in determining the maximum loan amount.

A

appraisal

104
Q

Appraisal is the process of rendering an opinion of a property’s ___.

A

Value

105
Q

Most real estate transactions are financed by means of ___ or ___.

A

Mortgage loans
Trust deed loans

106
Q

What establishes minimum education requirements for obtaining and keeping a real estate license?

A

State licensing laws

107
Q

Members of the National Association of Realtors must subscribe to a(n)…

A

Code of ethics

108
Q

___ property includes all property used for housing.

A

Residential

109
Q

___ property is business property.

A

Commercial

110
Q

___ property includes government held lands.

A

Special purpose

111
Q

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?

A

Agricultural

112
Q

McDonalds is an example of ___ property.

A

Commercial

113
Q

The real estate market can be subdivided into the ___ market and the ___ market.

A

Sales market
Rental Market

114
Q

The ___ market involves the transfer of a title and ownership rights

A

Sales market

115
Q

The ___ market involves temporarily leasing space to tenants

A

Rental

116
Q

How many categories of real property do real estate licensees generally choose to specialize in?

A

One

117
Q

What establishes market value?

A

Supply & Demand

Unit 1: Intro to the Real Estate Business (3 decks)

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