Unit 1 Intro to Real Estate Business

Question 1

What is a brokerage?

Answer 1

The business of bringing people together in a RE transaction.

Question 2

What is a broker?

Answer 2

A person or company licensed to buy sell exchange, or lease real property for others and to charge a fee for services.

Question 3

What is a licensee?

Answer 3

A person who has satisfied the requirements set forth by a licensing agency or state legislation.

Question 4

What is an appraisal?

Answer 4

The process of developing an option of property’s market value based on established methods. (Professional judgement)

Question 5

What is a property manager?

Answer 5

A person or company hired to maintain and manage property on behalf of its owner, and to protect the owners investment and maximize the return on that investment.

Question 6

What is a home inspection?

Answer 6

A person who conducts a thorough visual survey of a property’s structure, systems, and site conditions.

Question 7

What is financing?

Answer 7

The business of providing funds that make real estate transactions possible.

Question 8

What is a subdivision?

Answer 8

The dividing of a single property into smaller parcels.

Question 9

What is a development?

Answer 9

The preparation of a site and construction of structures or other improvements.

Question 10

What is counseling?

Answer 10

Provides clients with competent independent advice based on sound professional judgement.

Question 11

What are the 6-types of Real Property?

Answer 11

Residential, 
Commercial, 
Mixed-Use, 
Industrial, 
Agricultural, 
Special Purpose.

Question 12

What is a market?

Answer 12

A place where goods can be bought and sold.

Question 13

When do prices go up?

Answer 13

When demand increases and supply goes down.

Question 14

When do prices go down?

Answer 14

When supply increases and demand goes down.

Question 15

What are three markets of Real Property?

Answer 15

Buying, Selling, Leasing

Question 16

What are the two characteristics of real estate that govern supply and demand?

Answer 16

Uniqueness and

immobility of land.

Question 17

What is uniqueness?

Answer 17

No matter how similar, every property is different.

Question 18

What is immobility?

Answer 18

The fact that property can not be moved.

Question 19

What factors affect supply?

Answer 19

1-Labor Force, Construction, and material costs.

2-Governmental Controls (federal and local) and financial policies (interest rates)

Question 20

What factors affect demand?

Answer 20

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

Question 21

What is the difference between PUD and MUD?

Answer 21

Planned Unit Development - A self contained development

Mixed Unit Development - vertical community

Question 22

What are the 7-protected classes in Federal Fair Housing ?

Answer 22

1-Race
2-Color
3-National Origin
4-Religion
5-Sex
6-Familial Status
7-Disability 

Rachel Challenges Nathan to Run in the State Farm Debate

Question 23

Who is a salesperson?

Answer 23

A real estate licensee that is employed by or associated with a broker to perform brokerage activities on behalf of the broker. aka. Sales Associate or Associate Licensee

Question 24

What is a home inspection?

Answer 24

A profession that combines practitioners interest in real estate with construction trade. Conducts a thorough visual survey of a property structure systems and site conditions provides an analytical report.

Question 25

What are the 9 types of housing?

Answer 25

1-Single Family Detached
2-Apartment Building
3-Condominium
4-Cooperative
5-PUD
6-MUD
7-Converted-use properties
8-Factory built housing
9 -Modular Home