Unit 1 Real Estate

Question 1

Broker

Answer 1

Brings together the buyer and the seller

Question 2

Does deal have to close to get paid?

Answer 2

No

Question 3

Appraisal

Answer 3

works for the lender to protect lender’s interest, usually has no relationship with Broker

Question 4

Property Manager

Answer 4

person / company responsible for maintaining a client’s property and maximizing the return on the client’s investment

Question 5

Lender

Answer 5

puts hand in pocket and pulls out money

Question 6

Mortgage Broker

Answer 6

works with many lenders, goes house to house asking to buy

Question 7

Financing

Answer 7

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

Question 8

Home Inspector

Answer 8

conducts a thorough visual survey of a property’s structure systems, and site conditions and prepares an analytical report that is valuable to both hpurchasers and homeowners

Question 9

Three people involved in building

Answer 9

subdividers, developers, builders

Question 10

Conseling

Answer 10

Asks the right questions, finds what they are looking for

Question 11

Types of real estate properties

Answer 11

residential
commercial
mixed-use
industrial
agricultural
special purpose

Question 12

One house on one lot is

Answer 12

Single family - D

Question 13

Two houses together two lots is

Answer 13

Single family - A

Question 14

Two houses together one lot

Answer 14

Duplex

Question 15

Cooperative

Answer 15

own a company and own property and live within it, can control who leaves or enters to live there

Question 16

condominium, apartment, and cooperatives are different depending on

Answer 16

Context

Question 17

Planned Unit Development PUD

Answer 17

Zones for what was asked, can mix up what place is what without the zoning mattering

Question 18

Mix used developments

Answer 18

zoned for what was asked, cannot change what was zoned for

Question 19

Supply increases, demand stay same prices

Answer 19

go down

Question 20

Supply decreases, demand goes up, prices

Answer 20

go up

Question 21

Supply equal demand is called

Answer 21

equalibrium

Question 22

Two things that generate supply and demand in real estate

Answer 22

uniqueness and immobility

Question 23

uniqueness

Answer 23

how identical they may appear no two parcels of real estate are ever exactly alike

Question 24

Immobility

Answer 24

property cannot be relocated to satisfy demand where supply is low nor can buyers always relocate to areas with greater supply

Question 25

Factors affecting supply

Answer 25

creation

• labor force
• gov controls and monetary policy

Question 26

Factors affecting demand

Answer 26

People
-population
demographics
employment and wages

Question 27

Selling home profit made from it is called

Answer 27

capitol gains

Question 28

Must live in home for 5 years in order

Answer 28

to sell and get 250k tax free

Question 29

The limit to withdrawal 10,000 and the amount withdrawn must be spent entirely within

Answer 29

120 days on a down payment to avoid any penalty

Question 30

Holding property for increase of value

Answer 30

appreciation

Question 31

Other people money =

Answer 31

Leverage

Question 32

Leverage over value =

Answer 32

equity

Question 33

Liquidity

Answer 33

refers to how quickly an asset may be converted into cash

Question 34

professional of a property’s market value based on established methods and using trained judgements is

Answer 34

a counselor

Question 35

nationwide multistate licensing system and registry was created to register

Answer 35

home inspectors

Question 36

A school would be considered part of which real estate classification

Answer 36

special use

Question 37

Another name for depreciation is

Answer 37

cost recovery

Question 38

the use of borrowed money to finance an investment is called

Answer 38

leverage