Unit 1 Flashcards
A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property’s location is called
A. Physical deterioration
B. Area preference
C. Permanence of investment
D. Immobility
B. Area preference
In NC, the term provisional broker refers to
A. a REALTOR
B. A licensee who must operate under the supervision of a broker in charge
C. A licensee who must focus on a specialty area of real estate
D. An individual who had invested in real estate
B. A licensee who must operate under the supervision of a broker in charge
Real estate can be a poor investment if
A. The inflation rate is high
B. The investor plans to hold the investment for a long time
C. The investor needs ready cash
D. Land values are appreciating in the area
C. The investor needs ready cash
The demand for real estate isn a particular community is LEAST affected by
A. Population
B. Wage levels
C. Employment
D. International trade
D. International trade
A theater or hotel would be classified under the real estate category of
A. Residential
B. Commercial
C. Agricultural
D. Industrial
B. Commercial
Which of the following physical and economic factors would a land developer take into consideration when determining the optimum use of a parcel of land?
A. Transportation
B. Available natural resources
C. Contour and elevation
D. All of these
D. All of these
Which of the following BEST defines real estate?
A. Land and the air above it
B. Land and the buildings permanently affixed to it
C. Land and all things permanently affixed to it
D. Land and the mineral rights in the land
C. Land and all things permanently affixed to it
Which is NOT an economic characteristic of real estate?
A. Indestructibility
B. Scarcity
C. Permanence of improvement
D. Location
A. Indestructibility
In general terms, a market refers to which of the following?
A. Place where goods are standardized for sale
B. Amount of goods available at a given price
C. Quality of goods available to the public
D. Place where the value of goods is established
D. Place where the value of goods is established
All of be following factors tend to affect supply EXCEPT
A. The labor force
B. Construction costs
C. Government controls
D. Demographics
D. Demographics
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small towns housing market?
A. Houses will likely become less expensive as a result of the announcement
B. House will likely become more expensive as a result of the announcement
C. Because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same
D. The announcement involved an industrial property; residential housing will not be affected
B. Houses will likely become more expensive as a result of the announcement
The real estate market is considered local in character for all the following reasons EXCEPT
A. Land is fixed or immobile
B. Consumers generally invest in real estate that is near their home or work
C. Local controls can have significant impact on the market
D. Most people eagerly visit and invest in real estate in distant areas
D. Most people eagerly visit and invest in real estate in distant areas.
Situs refers to
A. View from the property
B. Improvements made to the building site
C. Societal factors that are related to the location
D. Immobility of real estate
C. Societal factors that are related to the location
Which of the following statements is/are TRUE of business cycles?
I. Business cycles involve periods of expansion, recession, depression, and revival
II. The real estate business cycle in quicker to recover from depressed times than other business sectors.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
A. I only
Highest and best use of real estate will
A. Maximize the property’s value
B. Stay constant throughout time
C. Always be the property’s current use
D. Not be affected by local economic trends
A. Maximize the property’s value
He demand for real estate is influenced by the
A. Number of real estate brokers in the area
B. Ethnic makeup of neighborhoods
C. Wage levels and employment opportunities in the area
D. Price of new homes being built in the area versus the price of existing homes
C. Wage levels and employment opportunities in the area
The designation REALTOR refers to
I. Any licensed real estate broker
II. An active member of the National Association of REALTORS
A. I only
B. II only
C. Both I and II
D. Neither I nor II
B. II only
In general, when the supply of a certain commodity increases, prices
A. Tend to rise
B. Tend to drop
C. Tend to stabilize
D. Can no longer be established
B. Tend to drop
Which of the following is NOT a physical characteristic of land?
A. Indestructibility
B. Scarcity
C. Immobility
D. Uniqueness
B. Scarcity
A professional estimate of a property’s market value, based on established methods and using trained judgment, is performed by a
A. Real estate appraiser
B. Real estate broker
C. Real estate counselor
D. Home inspector
A. Real estate appraiser
