Unit 1 - Introduction to the Real Estate Business

Question 1

Warehouses, factories and power plants are examples of?

Answer 1

Industrial Properties

Question 2

Population demographics and wage levels have an important effect on?

Answer 2

Demand

Question 3

The two characteristics of real estate that govern the way the marker reacts to supply and demand are what?

Answer 3

Uniqueness and Immobility

Question 4

Real estate markets are best described as what?

Answer 4

Local

Question 5

When the supply of commodity increases prices tend to …

Answer 5

Drop

Question 6

A real estate professional who performs a visual survey of a property’s structure and systems and prepares an analytical report for a purchaser for an owner acting as a

Answer 6

Home inspector

Question 7

When responsible for maintaining a clients property and maximizing return on the clients investment, a broker is serving as what?

Answer 7

A Property Manager

Question 8

Brokerage

Answer 8

Business of bringing people together in a real estate transaction

Question 9

Real Estate Licensee

Answer 9

Acts as a point of contact between two or more people in negotiating a sale, purchase or rental of property.

Question 10

All licensee are employed by a?

Answer 10

Sponsoring Broker

Question 11

Appraisal

Answer 11

The process of estimating a property’s market value based on established methods and the appraisals professional judgment

Question 12

Property Manager

Answer 12

Person or company hired to maintain and manage property on behalf of its owner

Question 13

Financing

Answer 13

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

Question 14

Subdivision

Answer 14

The splitting of a single property into smaller parcels

Question 15

What is the largest real estate trade organization?

Answer 15

National Association of Realtors (NAR)

Question 16

What are the 5 categories of real property?

Answer 16

1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose

Question 17

What is a market?

Answer 17

A place where good can be bought and sold.

Question 18

How do the forces of supply and demand work?

Answer 18

When supply increases, prices go down.
When demand increases, prices go up.
Price follows demand

Question 19

What are the factors that affect supply?

Answer 19

1. Labor Force
2. Construction Cost
3. Government Controls
4. Government Financial Policies

Question 20

What are the factors that affect demand?

Answer 20

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