unit 1

Population demographics and wage levels have an important effect on

monetary policy
construction rates
supply
demand
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Terms in this set (21)
Population demographics and wage levels have an important effect on

monetary policy
construction rates
supply
demand
demand
The two characteristics of real estate that govern the way the market reacts to supply and demand are

financing and appraisal
mobility and conformity
uniqueness and immobility
demographics and interest rates
uniqueness and immobility
Real estate markets are best described as
mobile
balanced
local
immune to supply and demand forces
local
Warehouses, factories and power plants are examples of
industrial properties
mixed-use properties
commercial properties
special purpose properties
industrial properties
When the demand of a commodity decreases

prices tend to rise
prices tend to drop
supply tends to rise
supply tends to drop
prices tend to drop
When responsible for maintaining a client's property and maximizing return on the client's investment, a broker is serving as
a rental agent
a building maintenance specialist
a property manager
an investment counselor
a property manager
A real estate professional who performs a visual survey of a property's structure and systems and prepares an analytical report for a purchaser or an owner is acting as

an educator
an appraiser
a property manager
a home inspector
a home inspector
When the supply of a commodity decreases,
prices tend to rise
prices tend to drop
demand tends to rise
demand tends to drop
prices tend to rise
Brokerage
the business of bringing people together in a real estate transaction
broker acts as a point of contact between two or more people in
negotiating the sale, purchase, or rental of property
a broker is a licensee employed by a sponsoring broker
a broker conducts brokerage activities on behalf of the sponsoring
broker, who is ultimately responsible for the broker's acts
A managing broker manages individual offices and licensees.
Appraisal
the process of estimating a property's market
value based on established methods and the
appraiser's professional judgment
Property managementa person or company is hired to maintain and manage property on behalf of its owner basic responsibility of the property manager is to protect the owner's investment and maximize the owner's return on the investmentFinancingthe business of providing the funds that make real estate transactions possibleSubdivisionthe splitting of a single property into smaller parcelsDevelopmentinvolves the construction of improvements on landHome inspectionallows practitioners to combine their interest in real estate with their professional skills and training in the construction trades. In Illinois requires a separate license.Counselinginvolves providing clients with independent advice based on professional judgment gives clients the information needed to make informed decisionsReal Estate Educationavailable to both practitioners and consumers state licensing laws establish the minimum educational requirements for obtaining and keeping a real estate license courses for pre-licensing or continuing education purposes can only be offered by licensed schools and licensed instructorsAuctioninguses an open and competitive bidding process to transfer property ownershipTypes of Real PropertyResidential Commercial Industrial Agricultural Special PurposeFactors Affecting SupplyLabor force Construction costs Government controls Financial policiesFactors Affecting DemandPopulation Demographics Employment and wage levels