Unit 1 Notes Flashcards
Who are the consumers of real estate?
Buyers and sellers
Tenants and landlords
Investors
Developers
What are the 3 licensing categories in Illinois?
Broker
Managing Broker
Leasing Agent
What is the business of bringing people together in a real estate transaction called?
Brokerage
Who is the point of contact between two or more people in a real estate transaction?
Real Estate Licensee
Who employs all real estate licensees?
Sponsoring broker
Who do licensees conduct real estate services on behalf of?
Their sponsoring broker
___ broker is designated to supervise licensees.
Managing
Who brings together tenants & rental properties in a brokerage?
Residential leasing agents
Determining property’s value based on established methods & professional judgment
Appraisal
A professional ___ to determine property’s value is required by most lenders to qualify for a mortgage
Appraisal
Who maintains and manages property on behalf of property’s owner?
Property manager
Property management services must be performed under supervision of…
A sponsoring broker
What kind of license is required for a property manager in Illinois?
Real Estate
Business of providing funds that make real estate transactions possible
Financing
Mortgage loans and trust deed loans secured by the property are relevant to which real estate specialty?
Financing
Splitting of a single parcel into smaller parcels
Subdivision
Constructing improvements on land
Development
Two types of improvements in development
Offsite
Onsite
___ improvements are on on public lands
Offsite
___ improvements are additions or enhancements within the property
Onsite
Water lines and sewers are ___ improvements.
Offsite
Roads are ___ improvements
Onsite
Buildings and infrastructure are ___ improvements
Onsite
Visual survey of property’s structure, systems, and site conditions
Home inspection
Home inspectors prepare…
An analytical report
Real estate specialty that provides clients with necessary information to make an informed decision
Counseling
Does Illinois have a specific “Real Estate Counselor” license?
No
Real Estate Counselor is considered as a ___.
Broker
Real Estate Counselors must be supervised by a ___.
Sponsoring Broker
Helps licensees keep skills & knowledge up to date
Education
Minimum & continuing education requirements are established by ___.
state
Competitive bidding process to transfer property
Auctioning
Largest professional organization in real estate
National Association of Realtors (NAR)
What is a Realtor?
A member of the National Association of Realtors
Realtors must subscribe to a…
Code of ethics
Single family & Multi-family housing are examples of ___ property.
Residential
Parking structures are an example of ___ property.
Commercial
Business property and office spaces are ___ property.
Commercial
Shopping centers are ___ property
Commercial
Theaters are ___ property.
Commercial
Hotels are ___ property.
Commercial
What are the 5 types of real property?
Residential
Commercial
Industrial
Agricultural
Special purpose
An apple orchard is an example of ___ property
Agricultural
A pumpkin patch is an example of ___ property.
Agricultural
Power plants are an example of ___ property
Industrial
Factories are an example of ___ property
Industrial
Warehouses are an example of ___ property
Industrial
Farms are considered as ___ property
Agricultural
Government held land is considered as ___ property
Special Purpose
A local high school is considered as ___ property
Special Purpose
A public library is ___ property.
Special purpose
City Hall is ___ property
Special purpose
Churches and other places of worship are considered ___ property.
Special purpose
A cemetery is ___ property
Special purpose
Your local police station is ___ property
special purpose
O’Hare airport is ___ property
special purpose
Wrigley Field is ___ property
special purpose
A hospital is ___ property
special purpose
A place where goods are bought and sold
Market
A ___ functions to provides a setting for supply and demand to establish market value
market
Real estate markets are ___ markets
local
Increased supply + stable or low demand = ___ prices
Lower
Increased demand + low supply = ___ prices
Higher
Two characteristics that influence supply & demand in real estate
Uniqueness
Immobility
___ refers to the fact that no two properties will ever be exactly alike; all properties have a different location
Uniqueness
___ refers to the fact that property cannot be relocated to satisfy demand where supply is low
Immobility
Skilled labor force & cost of construction materials influences ___.
Supply
Government controls & financial policies influences ___.
Supply
What 4 factors influence supply in the real estate market?
Skilled labor force
Cost of construction materials
Government controls
Government financial policies
Local government land use controls influence ___.
Supply
Local zoning ordinances influence ___.
Supply
Local building codes influence ___.
Supply
Which 3 factors influence demand?
Population
Demographics
Employment opportunities & wage levels
The study & description of a population
Demographics
___ information contributes to the amount & type of housing needed
Demographic
___ marketing references specific group in a specific area, property category, or demographic group
Niche
When job opportunities are scarce or wages are low, demand for real estate ___.
Decreases