Unit 1 Intro to Real Estate Business Quiz Flashcards
A professional opinion of a property’s market value, based on established methods and using trained judgement, is performed by…
A real estate appraiser
In general, when the supply of a certain commodity increases…
Price tends to drop.
Details: If demand is constant and supply increases, sellers compete with each other by lowering prices.
Which factor primarily affects supply and value or property in the real estate market?
Government monetary policy
Which factor is MOST likely to influence demand for real estate?
Wage levels and employment opportunities.
Details: When wage levels and job expansion are increasing, workers are more likely to buy real estate; when job opportunities are scare or wage levels low, demand for real estate usually drops.
Property management, appraisal, financing, and development are all examples of…
Specializations within the real estate industry
What type of federal law prohibits discrimination in the provision of housing and housing-related services (including lending) based on an individual’s race, color, national origin, religion, sex, familial status, or disability?
Fair Housing
A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?
Houses will most likely become more expensive.
Details: The area will become a sellers market with the expected arrival of 2,000 employees there will be a shortage of new homes, buyers will have to compete for the few houses available.
A real estate professional who has several years of experience in the industry decided to retire from actively marketing properties. Now this person helps clients choose among the various alternatives involved in purchasing, using or investing in property. What is the person’s profession?
Real estate counselor
Nationwide Multi-state Licensing System and Registry was created to register…
Mortgage loan originators
Schools would be considered part of which real estate classification?
Specific purpose
When demand for a commodity decreases and supply remains the same. What happens to the price?
Price begins to fall
Details: producers need to attract more customers, and so prices fall.
The difference between the cost basis of property and its net selling price is…
Capital gain
Details: Profit earned from the sale of an asset
The use of borrowed money to finance an investment is called…
Leverage
All of the following are categories of uses of real estate property EXCEPT A. residential B. developmental C. agricultural D. industrial
B. Developmental
All of the following would effect the demand EXCEPT A. population B. demographics C. wage levels D. monetary policy
D. Monetary policy
