Real estate chapter 1

Question 1

Advertisement

Answer 1

Any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services.

Question 2

Blog

Answer 2

A personal, online diary or journal that reaches out to millions of people on the web.

Question 3

Business cycles

Answer 3

The ups and downs in economic activity, identified as two phases and two turning points.

Question 4

Cold calling

Answer 4

Making unsolicited calls to people you do not know in order to get new business.

Question 5

Contraction

Answer 5

A slowdown in the pace of economic activity.

Question 6

Cycles

Answer 6

Periodic, irregular up-and-down movements in economic activity that take place over a period of 2 to 6 years.

Question 7

Demand

Answer 7

How much of a product is desired by buyers.

Question 8

Direct marketing

Answer 8

Making phone calls and emailing or mailing promotional materials directly to potential customers as opposed to through mass media.

Question 9

Ethics

Answer 9

A set of principles or values by which an individual guides his or her behavior and judges that of others.

Question 10

Expansion

Answer 10

An increase in the pace of economic activity

Question 11

Floor time

Answer 11

The set hours that a sales associate is in the brokerage office to answer incoming phone calls and handle inquiries from walk-ins.

Question 12

FSBO

Answer 12

An abbreviation for “for sale by owner.

Question 13

Illiquid

Answer 13

Cannot be readily converted to cash.

Question 14

Law of supply and demand

Answer 14

One of the fundamental principles in determining the price of a commodity. For example, as supply increases the price will tend to drop, and as demand increases the price will tend to increase.

Question 15

Liquid asset

Answer 15

Can quickly be bought and sold.

Question 16

Listing agreement

Answer 16

A contract between the property owner and the brokerage to place properties for sale with the brokerage.

Question 17

Market economy

Answer 17

An economy that relies primarily on interactions between buyers and sellers to allocate resources.

Question 18

Market

Answer 18

Trade in a specified commodity.

Question 19

Net worth

Answer 19

The value of all assets minus all liabilities

Question 20

Networking

Answer 20

The practice of making contact and exchanging information with other people.

Question 21

Peak

Answer 21

The upper turning point of a business cycle.

Question 22

Personal Selling

Answer 22

Any form of direct communication (usually face-to-face) between an associate licensee and a customer.

Question 23

Prospecting

Answer 23

The process of developing business by identifying potential customers.

Question 24

Prospecting strategy

Answer 24

The activities used—direct marketing, personal selling, and networking—to contact prospective clients and customers.

Question 25

Real estate board

Answer 25

(association). Made up of members who share an interest in the business of real estate.

Question 26

REALTOR®.

Answer 26

A member of the national association of REALTORS® (NAR®).

Question 27

Residential brokerage

Answer 27

The business of helping homeowners sell and homebuyers purchase homes.

Question 28

Residential market

Answer 28

Single-family homes, condominiums, and duplexes.

Question 29

Submarket

Answer 29

A geographic, economic, or specialized subdivision of a market.

Question 30

Supply

Answer 30

How much of the product the market can offer.

Question 31

Trade association

Answer 31

A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress, and enhance service.

Question 32

Trends

Answer 32

Changes in the market in a consistent direction that occur over a long-term period

Question 33

Trough

Answer 33

The lower turning point of a business cycle.