Texas Real Estate Brokerage Flashcards
A few of the many advantages a broker has over being a licensed agent under a broker include:
More money generated through the efforts of others Pride of ownership Centralized decision making Person of authority Respect for the owner/broker Helping others succeed
Disadvantages of Being a Broker
Less income Increased time commitment Increased liability Responsibility for the lives of others No help Lack of avenue for advice
One of the top reasons a brokerage fails is ____________.
lack of funds
What is one of the most important attributes of a good broker?
Helping others succeed
How does a licensee’s liability change after becoming a broker?
If an agent commits a violation, the broker will likely also be held liable. This additional liability not only adds risk but also stress.
Real estate students tend to increase during good markets and decrease during the declining markets
True
The Texas Real Estate Center publishes information about
real estate trends and market fluctuations for the public.
The “Central Texas Triangle”
runs from the Dallas–Fort Worth MSA along I-45 to the Houston MSA (which includes Conroe and The Woodlands), along I-10 to the San Antonio MSA (which includes Seguin), and along I-35 (which includes San Marcos, Austin, Temple and Waco).
____________ may be one of the most significant growth stimulants for Texas during the first half of this century.
Housing affordability
Real Estate Market Life Cycle: Growth Stage
The trend is for a real estate development to start with dirt at a low value. Then a developer changes the dirt into streets, sidewalks, and sewers and sells the developed land to a builder. The builder site constructs a house and sells it to the general public. During this process is the highest increase in value the property will likely ever see. This stage typically lasts 2 to 5 years.
Real Estate Market Life Cycle: Equilibrium Stage
During equilibrium, very little changes. The homeowners remain stable. They raise their families, get to know each other, and have community events. The houses are kept up and values remain constant. You will see the “pride of ownership” at the highest point during this stage. The properties are well kept up and the area is clean, peaceful and safe. This stage could last as little as 3 years or as long as 50 years.
Real Estate Market Life Cycle: Decline Stage
During the decline stage, the trend is for properties to start to devalue. The houses are getting older or are showing faulty construction. The front window is cracked, the gutter is fallen, and the tree out front is dead. Someone in the area wants to sell and realizes he can’t sell without taking less than he needs to get for the property, so he rents it. Renters are not bad people but they do not have the pride of ownership the actual owner does. The grass needs mowing, but the renters won’t mow. The yard has trash in it that has been there for weeks. This downward trend continues for 3 to 10 years.
Real Estate Market Life Cycle: Revitalization Stage
Revitalization occurs when values in an area drop to levels that interest investors. An investor buys a house in the area, fixes it up, and sells it to a homeowner. This upward trend lasts from 3 to 5 years when a second equilibrium occurs.
What does it mean when we say the real estate industry is currently in a neutral market?
Supply and demand are about equal.
What does the Texas Real Estate Center say about the growth of the Texas population?
Texas’ population is projected to grow by ten million people, from about 23 million in 2005 to 33 million by 2030, a 43.5 percent increase or roughly 1.7 percent per year.
