Unit 1: Intro to Real Estate

Question 1

Brokerage

Answer 1

The business of bringing people together in a real estate transaction

Question 2

Market

Answer 2

A place where goods can be bought and sold. A market may be a specific place, such as the village square, or it may be a vast, complex worldwide economic system for moving goods and services

The function of a market is to provide a setting in which supply and demand can establish market value, making it advantageous for buyers and sellers to trade

Question 3

Real Estate Licensee

Answer 3

Acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property.

A real estate licensee may be the agent for the buyer, for the seller, or for both. The property may be residential, commercial, or industrial

Question 4

Sponsoring Broker

Answer 4

All licensees are employed by a sponsoring broker and conduct brokerage services on behalf of that sponsoring broker

Question 5

Supply and Demand

Answer 5

The forces of supply and demand in the market determine how prices for goods and services are set

When supply increases and demand remains stable, prices go down

When demand increases and supply remains stable, prices go up

Greater supply means producers need to attract more buyers, so they lower prices

Greater demand means producers can raise their prices because buyers compete for the product