Unit 1 Intro To Real Estate

Question 1

What is a Appraisal?

Answer 1

Meaning: Appraisal is the process of developing an opinion of a property’s market value, based on established methods and the appraiser’s professional judgment.

Question 2

What is the responsibility of a Property Manager?

Answer 2

The basic responsibility of a property manager is to protect the owners investment and maximize the return on that investment.

Question 3

Condominium owners share/own which parts of the condo?

Answer 3

A condominium owners owns an individual unit and also shares ownership with other unit owners of common facilities (called common elements) example; clubhouses, swimming pools

Question 4

Supply

When supply increases and demand remains stable, prices will?

Answer 4

Prices will go down.

Question 5

Demand

When demand increases and supply remains stable, prices go?

Answer 5

Prices go up

Question 6

What are the 3 Factors affecting real estate supply?

Answer 6

1. Labor force, construction and material.
2. Government controls & financial polices
3. Local government factors

Question 7

What are 3 Factors affecting real estate Demand?

Answer 7

1. Population
2. Demographics
3. Employment and wage levels.

Question 8

Real estate Broker is who?

Answer 8

A real estate broker is a person or company licensed to buy, sell, exchange or lease property for others for compensation.

Question 9

What is Financing?

Answer 9

Providing funds/loans secured by a mortgage or deed of trust on the property.

Question 10

What is subdivision?

Answer 10

Involves splitting property into smaller parcels (subdividing)

Question 11

What is Development?

Answer 11

Constructing improvements on the land (development)

Question 12

A Home inspection is what?

Answer 12

Home inspection is a thorough survey of property conditions. In the interest of both purchasers and homeowner.

Question 13

Types of real property? (6)

Answer 13

1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special purpose

Question 14

The real estate market reflects the principles of supply and demand. What are the two influences by these two factors of parcels or real estate?

Answer 14

Uniqueness and immobility

Question 15

What are the factors affecting supply?

Answer 15

Factors affecting supply include

1. Labor force
2. Construction & material cost
3. costs government controls ( environmental, restrictions land-use policies, building codes and zoning)

Question 16

What are the factors affecting demand?

Answer 16

1. Population
2. Demographics
3. Employment wages