Unit 1: Intro to Real Estate business Flashcards
what is a brokerage?
the business of bringing people together in a real estate transaction
Appraisal
process of developing an opinion of the market value of real estate property
property management
business of managing real estate to protect the owner’s investment and maximize the owner’s return
financing
business of arranging for or providing funds for real estate transactions
subdivision and development
activities of dividing a large parcel of real estate into smaller ones and constructing improvements on the land
home inspection
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
is home inspection always required?
no
counseling
activity of providing clients with competent and independent information and advice to assist in their real estate investment decisions
education
provision of real estate education opportunities to both practitioners and consumers
others
settings in which real estate expertise is required, such as the practice of law, corporations with extensive land holdings, and government agencies
how many types of real property are there?
6
What are the types of real property?
- residential
- commercial
- mixed-use
- special purpose
- industrial
- agricultural
Residential
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
commercial
office buildings, retail stores and shopping centers, and other specialized facilities such as marinas, air parks, and certain mixed-use properties
Mixed-use
properties that allow commercial and residential uses in the same building
industrial
factories, industrial parks, warehouses, and power plants
agricultural
farms, ranches, orchards, vineyards, feedlots, hatcheries, and timberland
special purpose
churches, schools, cemeteries, government-owned property
What are the types housing ?
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
Fair Housing
federal law prohibits discrimination in the provision of housing and housing-related services
the real estate market
exists when goods are bought and sold
supply and demand
the economic forces that set prices for products
Characteristics of real estate affecting supply and demand
a. uniqueness,
b. immobility
c. effect of natural disasters, changes in financial markets, local events.
Prices will generally drop as ________ increases relative to demand
supply
prices will generally rise as ________ increases relative to supply
demand
Factors affecting supply
- Labor force availability and material costs
- Government controls at all levels
- Government monetary policy
Factors affecting demand
- Population
- Demographics—the make-up of the population including mobility, financial stability, and size and nature of family unit
- Employment and wage levels—where and how money is spent; perceived job security
Financial Considerations for the Homeowner
increase in homeowner’s equity and tax advantages of homeownership
