Unit 1 - Intro to the Real Estate Business Flashcards
Real estate brokerage
the business of bringing people together in a real estate transaction conducted by areal estate broker
real estate broker
a person or company licensed to buy, sell, exchange, or lease real property for others for compensation
real estate salesperson(sales associate)
is a licensed professional who conducts brokerage activities on behalf of thebroker
Appraisal
the process of developing an opinion of a property’s value (typically, market value) based on established methods and an appraiser’s professional judgment. Licensing or certification is required for many federally related transactions, andmany statesrequires licensing or certification for other transactions as well.
Types of real property
residential,commercial,mixed use,industrial,agricultural, andspecial purpose, which can be privately or publicly held
Thereal estate marketreflects
the principle ofsupply and demand, influenced by theuniquenessandimmobilityof parcels of real estate. When the supply increases relative to demand, prices go down, and when demand increases relative to supply, prices go up.
The factors affecting thesupplyof real estate include
labor force availability, construction and material costs, government controls (environmental restrictions, land use policies, building codes, zoning), and monetary policy that impacts interest rates and the money supply
The factors affecting thedemandfor real estate include
population, demographics, and employment and wage levels.
The buyer of a home can benefit from
tax deductions,exclusion of gainon the sale of the home, andtax credits, when available.
Types of housing
- Single-family detached house
- Row house
- Accessory dwelling unit (ADU)
- Apartment building
- Apartment complex
- Condominium
- Cooperative
- Planned unit developments (PUDs)
- Highrise developments or mixed-use developments (MUDs)
- Converted-use properties
- Factory-built housing (manufactured homes)
- Modular homes
- 3D-printed homes
Residential:
All property used for single-family or multifamily housing, whether in urban, suburban, or rural areas.
Commercial:
Business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities.
Mixed-use:
Property that allows for two or more commercial and residential uses in the same building.
Industrial:
Warehouses, factories, land in industrial districts, and power plants.
Agricultural:
Farms, timberland, ranches, and orchards.
Special purpose:
Privately owned properties, such as places of worship, schools, and cemeteries, as well as publicly held properties, such as schools, municipal service buildings, and parks.
Single-family detached house:
A type of housing that stands alone and is designed for a single family, offering privacy and a yard.
Row house
Also known as a townhouse, it is a type of housing that shares a common wall with adjoining properties, usually arranged in a row or a block.
Accessory dwelling unit (ADU):
A secondary housing unit located on a single-family house lot that is either attached to or detached from the main dwelling. It can serve as a separate living space.
Apartment building:
A multi-story building that consists of multiple individual apartment units, often with shared amenities and facilities.
Apartment complex:
A group of apartment buildings with various numbers of units in each building, typically offering additional amenities such as parking, clubhouse, or swimming pool.
Condominium:
A residential ownership form where individuals own individual units but share ownership of common facilities and areas with other unit owners, managed by a governing association.
Cooperative:
A type of housing where residents own shares in a corporation that holds the title to the real estate, and each shareholder receives a proprietary lease to a specified unit.
Planned unit developments (PUDs):
Also known as master-planned communities, they are self-contained developments that merge different land uses, such as housing, recreation, and commercial units, into one community.
High rise developments or mixed-use developments (MUDs):
Vertical communities that combine residential units with office spaces, stores, theaters, and other amenities within a single building.
Converted-use properties:
Former industrial or commercial buildings that have been converted into residential use, such as warehouses, factories, or schools.
Factory-built housing (manufactured homes):
Permanent residences built in factories to federal specifications, offering affordable and customizable housing options.
Modular homes:
Homes constructed with pre-fabricated components that are assembled on-site, providing a faster and cost-effective alternative to traditional stick-built construction.
3D-printed homes:
Homes created using 3D printing technology, where structures are built layer by layer, potentially offering a more efficient and sustainable approach to housing construction.
The major goal of fair housing laws is
to prevent discrimination in the provision of housing and housing-related services based on characteristics such as race, color, national origin, religion, sex, familial status, or disability.
Factors that tend to affect the supply side of the real estate market’s supply and demand balance include
labor force availability, construction and material costs, and governmental controls and financial policies
Factors that tend to affect the demand side of the real estate market include
population, demographics, and employment and wage levels.
For mortgages taken out after December 14, 2018, an individual may deduct interest on debt up to
750,000
Loans in existence prior to that date are not affected, as long as they are not over
1,000,000
State and local real estate taxes can be used as an itemized deduction up to a limit of
10,000
