Unit 1: Intro to Real Estate business

Question 1

what is a brokerage?

Answer 1

the business of bringing people together in a real estate transaction

Question 2

Appraisal

Answer 2

process of developing an opinion of the market value of real estate property

Question 3

property management

Answer 3

business of managing real estate to protect the owner’s investment and maximize the owner’s return

Question 4

financing

Answer 4

business of arranging for or providing funds for real estate transactions

Question 5

subdivision and development

Answer 5

activities of dividing a large parcel of real estate into smaller ones and constructing improvements on the land

Question 6

home inspection

Answer 6

activities involved in conducting a visual survey of a property’s site conditions, structure, and systems, and preparing an analytical report to both buyers and homeowners

Question 7

is home inspection always required?

Answer 7

no

Question 8

counseling

Answer 8

activity of providing clients with competent and independent information and advice to assist in their real estate investment decisions

Question 9

education

Answer 9

provision of real estate education opportunities to both practitioners and consumers

Question 10

others

Answer 10

settings in which real estate expertise is required, such as the practice of law, corporations with extensive land holdings, and government agencies

Question 11

how many types of real property are there?

Answer 11

6

Question 12

What are the types of real property?

Answer 12

1. residential
2. commercial
3. mixed-use
4. special purpose
5. industrial
6. agricultural

Question 13

Residential

Answer 13

single-family dwellings, duplexes and double houses, triplexes, fourplexes, apartments, townhouses, condominiums, mobile homes, manufactured housing, modular housing, and real estate used for specific residential purposes such as retirement homes, vacation property, and others common in different parts of the country

Question 14

commercial

Answer 14

office buildings, retail stores and shopping centers, and other specialized facilities such as marinas, air parks, and certain mixed-use properties

Question 15

Mixed-use

Answer 15

properties that allow commercial and residential uses in the same building

Question 16

industrial

Answer 16

factories, industrial parks, warehouses, and power plants

Question 17

agricultural

Answer 17

farms, ranches, orchards, vineyards, feedlots, hatcheries, and timberland

Question 18

special purpose

Answer 18

churches, schools, cemeteries, government-owned property

Question 19

What are the types housing ?

Answer 19

A. Single-family detached house

B.	Apartment building

C.	Condominium

D.	Cooperative

E.	Planned unit development (PUD)

F.	Mixed-use development (MUD)

G.	Converted-use properties

H.	Factory-built housing

Question 20

Fair Housing

Answer 20

federal law prohibits discrimination in the provision of housing and housing-related services

Question 21

the real estate market

Answer 21

exists when goods are bought and sold

Question 22

supply and demand

Answer 22

the economic forces that set prices for products

Question 23

Characteristics of real estate affecting supply and demand

Answer 23

a. uniqueness,
b. immobility
c. effect of natural disasters, changes in financial markets, local events.

Question 24

Prices will generally drop as ________ increases relative to demand

Answer 24

supply

Question 25

prices will generally rise as ________ increases relative to supply

Answer 25

demand

Question 26

Factors affecting supply

Answer 26

1. Labor force availability and material costs
2. Government controls at all levels
3. Government monetary policy

Question 27

Factors affecting demand

Answer 27

1. Population
2. Demographics—the make-up of the population including mobility, financial stability, and size and nature of family unit
3. Employment and wage levels—where and how money is spent; perceived job security

Question 28

Financial Considerations for the Homeowner

Answer 28

increase in homeowner’s equity and tax advantages of homeownership