real estate vocab Unit 1

Question 1

Brokerage

Answer 1

The business of bringing people together in a real estate transaction

Question 2

Broker

Answer 2

A person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services.

Question 3

Licensed real estate salesperson, sales associate, or associate licensee

Answer 3

A person employed by or associated with the broker to perform brokerage activities on behalf of or for the broker

Question 4

Real estate license

Answer 4

A person who has satisfied the requirements of a licensing agency, as authorized by state legislation.
*The requirements include: course hours or work experiments and passing a state-mandated real estate exam.

Question 5

Appraisal

Answer 5

The process of developing an opinion of a property’s market value, based on established methods and the appraiser’s professional judgement.
*Appraisers must have: detailed knowledge of the methods of valuation and must be not only licensed or certified for many federally related transactions but also licensed or certified in many states to be involved in transactions that are not federally related.

Question 6

Property Manager

Answer 6

A person or company hired to maintain and manage property on behalf of the property owner
Their basic responsibility is to protect the owner’s investment and maximize the return on that investment

Question 7

Management agreement

Answer 7

The employment contract between the owner and the manager

Question 8

Financing

Answer 8

The business of providing the funds that make real estate transactions possible

Question 9

Subdivisions

Answer 9

The dividing of a single property into smaller parcels

Question 10

Development

Answer 10

Involves the construction of the improvement that benefit the land

Question 11

Off-site improvements

Answer 11

Are made on public lands to serve the new development such as water lines and storm sewers

Question 12

On-site improvements

Answer 12

Are made on individual parcels such as new homes or swimming pools

Question 13

Home Inspector

Answer 13

A profession that combines a practitioner’s interest in real estate with skills and training in the construction trades

Question 14

Professional home inspector

Answer 14

Conducts a thorough visual survey of a property’s structures, systems, and site conditions and prepares an analytical report that is valuable to both purchasers and homeowners

Question 15

Counseling

Answer 15

Providing clients with competent independent advice based on sound professional judgement

Question 16

Real Estate Counselor

Answer 16

Helps clients choose among the various alternatives involved in purchasing, using , or investing in property
Their role is to furnish clients with the information needed to make informed decisions
*They require a high degree of industry expertise

Question 17

NAR National Association of Realtors

Answer 17

Is composed of state, regional, and local associations
It also sponsors various affiliated organizations that offer professional designations to brokers,salespersons, appraisers, and others who complete required courses in areas of special interest.

Question 18

Ethics

Answer 18

Refers to a system of moral principles, rules, and standards of conduct. Do 2 things:

1. Establish standards for integrity and competence in dealing with consumers of an industry’s services.
2. They define a code of conduct for relations within the industry among it’s professionals.

Question 19

Code of Ethics

Answer 19

A written system of standards for ethical conduct

Question 20

Residential

Answer 20

All property used for single family or multi-family housing, whether in urban, suburban, or rural areas

Question 21

Commercial

Answer 21

Business property including office space, shopping centers, stores, theaters, hotels, and parking facilities.

Question 22

Mixed use

Answer 22

Properties that allows for two uses, commercial and residential, in the same building

Question 23

Industrial

Answer 23

Warehouse, factories, land in industrial districts and power plants

Question 24

Agricultural

Answer 24

Farms, timberland, ranches, and orchards

Question 25

Special purpose

Answer 25

Privately owned properties such as places of worship, schools, and cemeteries, as well as publicly held properties such as schools, municipal service buildings and parks.

Question 26

Home ownership

Answer 26

People buy homes for many reasons

Question 27

Market

Answer 27

A place where goods can be bought and sold

The function of a market is to provide a setting in which supply and demand can establish market value.

Question 28

Supply

Answer 28

The quantity of good or services that can be sold at a given price

Question 29

Demand

Answer 29

The quantity of good or services that consumers are willing and able to buy at a given price

Question 30

when supply increases and demand remains stable, prices go down

Answer 30

when demand increases and supply remains stable, prices go up

Question 31

Uniqueness

Answer 31

This means that no matter how identical they may appear, no two parcels of real estate are ever exactly alike
Each occupies its own unique geographic location

Question 32

Immobility

Answer 32

Refers to the fact that property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply.

Question 33

Factors affecting real estate supply are

Answer 33

• Labor force, construction, and material costs
• Government controls and financial policies
• Local government factors

Question 34

Factors affecting real estate demand are

Answer 34

1. Population
   - Shelter is a basic human need, the demand for housing grows with the population
2. Demographics
   - The study and description of a population
3. Employment and wage levels
   - Decisions about whether to buy or rent and how much to spend on housing and closely related to income

Question 35

Home ownership

Answer 35

• Financial stability
• Investment
• Pride, security, sense of belonging

Question 36

Types of housing

Answer 36

single family detached house, apartment building, condominium, cooperative planned unit development (PUD), mixed use development (MUD), converted use property, factory-build housing