Section 15 Vocabulary

Question 1

Four physical characteristics of real estate include

Answer 1

Land is immobile, indestructible, nonhomogeneous, and restricted by governmental controls.

Question 2

How do government controls influence the market?

Answer 2

Government controls influence the market through zoning, building codes, and taxes.

Question 3

Economic characteristics of real estate include

Answer 3

The relationship between supply, demand, and price.

Question 4

Demand is driven by

Answer 4

Consumer preference

Question 5

Supply is driven by

Answer 5

Availability

Question 6

Buyer’s Market

Answer 6

If there is a greater supply of property than buyers to buy, you have a buyer’s market. The result is that you can buy real estate for a better price. Supply exceeds demand.

Question 7

Demand

Answer 7

Demand is the willingness of consumers to buy.

Question 8

Household

Answer 8

Defined as any people currently occupying given premises.

Question 9

Seller’s Market

Answer 9

A seller’s market exists when there are more buyers (demand) than available real estate for sale. Sellers can hold out for the best price and often buyers will actually bid up the price of a house in order not to lose it. Demand exceeds supply.

Question 10

Sitis

Answer 10

The definition of situs involves buyer’s personal preferences for location, accessibility and features.

Question 11

Supply

Answer 11

The number of homes available at any one time.

Question 12

Vacancy Rate

Answer 12

The formula for vacancy rate is the number of vacant units ÷ by the number of total units.