Unit 1.2 Flashcards
Cooperative
A cooperative also has units that share common walls and facilities within a larger building. The owners do not own the units; instead, each owner owns shares in a corporation that holds title to the real estate. Each shareholder receives a pro- prietary lease to a specified unit in the building. Like condominium unit owners, cooperative shareholders pay their share of the building’s expenses
Planned Unit Developments
Planned unit developments (PUDs) sometimes called master planned communities, might consist residences, but they can also serve to merge such diverse land uses as housing, recreation, and commercial units into one self-contained development. PUDs planned under special zoning ordinances. These ordi permit maximum use open space by reducing lot sizes and street areas. Owners do not have direct ownership interest in the common areas. A com munity association is formed to maintain these areas, with fees for expenses col lected from the owners. A PUD may be a small development of just a few homes or an entire planned city.
Highrise Development
Highrise developments, sometimes called mixed-use developments (MUDs) combine office space, stores, theaters, and apartment units into a single verti cal community. MUDs are usually self-contained and may offer laund restaurants, food stores, beauty parlors, barbershops swimming pools, and other attractive and convenient features
Converted use properties
properties are factories, warehouses, office buildings, hotels, school churches, and structures that have been converted to residential use. Devel other opers often find renovation of such properties more aesthetically and economi ally appealing than demolishing a perfectly sound structure to build something new. An abandoned warehouse may be transformed into luxury loft condominium out-of-date hotel may be renovated to create an apartment building; and units, an an unused factory may be recycled into a profitable shopping mall
Factory built housing
Factory built housing was once the often-derided mobile home, the most tempo rary of residences. Today, what are termed manufactured homes are permanent installations built to federal specifications, providing principal residences or vaca tion homes. The relatively low production cost of assembly line-type construc tion in factories unaffected by the elements, coupled with the increased living space available in newer models, makes such homes an attractive option for both manufacturers and buyers. Increased sales have resulted in growing numbers of manufactured home parks that offer complete residential environments with p community facilities, as well as semi permanent foundations and ho for gas, water, and electricity.
Modular Homes
Another type of factory housing is the modular home with components that are assembled at a building site a prepared foundation. Workers finish the structure and connect plumbing and wiring. Entire developments can be built at a fraction of the time and cost of conventional stick-built construction
Market
A market is a place where goods can be bought and sold. A market may be specific physical place, such as a shopping mall. It also may be a vast, complex economic system for moving goods and services throughout the world. In either case, the function of a market is to provide a setting in which supply and demand can establish market value, making it advantageous for buyers and sellers to trade
Supply and Demand
Supply and Demand Prices for goods and services in the market are established by the operation of supply and demand. The supply is the quantity of goods or services that can be sold at a given price. In the real estate market, the supply is made up of residential and commercial land and structures. Demand refers to the quantity of goods or services that consumers are willing and able to buy at a given price. In the real estate market, the number of homebuyers and businesses seeking to buy property can vary greatly depending on general economic conditions When supply and demand are roughly balanced, prices are stable and there is neither inflation (prices increasing) or deflation (prices decreasing) When sup ply increases and demand fails to increase commensurately, prices go down; when demand increases and supply fails to increase sufficiently to satisfy that demand prices go up. Greater supply means producers need to attract more buyers, so they lower prices. Greater demand means producers can raise their prices because buyers compete for the product.
Supply and Demand Market
Supply and Demand in the Real Estate Market Two characteristics of real estate govern the way the market reacts to the pressures of supply and demand: uniqueness and immobility. Uniqueness means that, no matter how identical they may appear, no two parcels of real estate are ever exactly alike; each occupies its own unique geographic location. Immobility refers to the fact that property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply For these reasons, real estate markets are local markets. each geographic area has different types of real estate and different conditions that drive prices. in these well defined areas, real estate offices can keep track of the types of property that are in demand, as well as the properties that are available to meet that demand
Supply and Demand 2
Because of real estate’s uniqueness and immobility, the market generally adjusts slowly to the forces of supply and demand. Though a home offered for sale can be withdrawn in response to low demand and high supply, it is just as likely that oversupply will result in lower prices. When supply is low, on the other hand, a high demand may not be met immediately because development and construction are lengthy processes. As a result, development tends to occur in uneven spurts activity.
Even when supply and demand can be forecast with some accuracy, natural disas ters such as hurricanes and earthquakes can disrupt market trends. Similarly, a sudden change in the national financial market, a local event such as a business closure, or a regional disruption caused by storm damage can dramatically disrupt a seemingly stable market.
