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34 Cards in this Set

  • Front
  • Back
Broker/Brokerage
a person or company licensed to buy, sell, exchange, or lease real property for others in exchange for compensation
Real estate salesperson
conducts brokerage activities on behalf of the broker; a licensee
licensee
a person who has satisfied the requirements set forth by a licensing agency or state legislation (through the completion of course hours or work experience, and passing a state-mandated real estate exam)
8 Specializations in Real Estate
Brokerage
Appraisal
Property Management
Financing
Subdivision and Development
Home Inspection
Counseling
Education
Appraisal
the process of estimating a property's market value based on established methods and the appraiser's professional judgment
Property Management
a person or company hired to maintain and manage property on behalf of the owner with the main responsibility of protecting the owner's investment and maximizing the owner's financial return
Financing
the business of providing funds that make real estate transactions possible (mortgage and trust deed loans provided by banks, saving associations, and mortgage companies)
Subdivision and Development
involves splitting a single property into smaller parcels and constructing improvements on the land
Home Inspection
a profession in which inspectors conduct a thorough visual survey of a property's structure, systems and site conditions
Counseling
provides clients advice based on purchasing, using, or investing in property
NAR
National Association of Realtors
-the largest trade organization that serve real estate business; members are Realtors or Realtor-Associates
NAREB
National Association of Real Estate Brokers
-dedicated to equal housing opportunity; members are Realists
Types of Real Property
Residential, Commercial, Mixed-Use, Industrial, Agricultural, Special purpose
Residential
single or multi-housing housing
Commercial
property that is used for business
Mixed-Use
property that allows for both residential and commercial use
Industrial
property that include warehouses, factories, land in industrial districts and power plants
Agricultural
property that include farms, timberland, ranches, and orchards
Special-purpose
property that include churches, schools, cemeteries, and government-held lands
Supply and Demand
When supply is up, demand stable, price will lower
When demand is up, supply stable, price will rise
Uniqueness
non-homogeneity; no matter how identical they may be, no 2 parcels of real estate are alike; each occupies its own unique geographic location
Immobility
refers to how property cannot be relocated to satisfy demand where supply is low and how buyers also cannot always relocate to areas with greater supply
Factors that affect supply
Labor force availability
Construction and material costs
Government controls and financial policies
Labor force availability
a shortage of labor force may decrease the amount of new construction, which in turn will lower supply
Construction and material costs
a shortage of building materials and an increase of the costs of materials can decrease the amount of new construction (lowering supply)

high transfer costs (taxes) and construction permit fees can also discourage development
Government Controls
controls the use of land
-Environmental restrictions, land use controls, building codes and zoning ordinances can either increase or decrease the supply of real estate in a local market
Government financial policies
-impacts interest rates and money supply (includes the Fed, FHA, and Ginnie Mae)
-includes real estate taxation policies that can either have a positive or negative effect
The Fed, FHA, and Ginnie Mae
Will impact people's ability to buy homes/property
- the Fed (Federal Reserve Bond) who establish a discount rate of interest for the money it lends to commercial banks, which causes those banks to charge an interest rate to their borrowers
- FHA (Federal Housing Administration) and Ginnie Mae (Government National Mortgage Association) which affect the amount of money available to lenders for mortgage loans
Factors that affect demand
Population
Demographics
Employment and wage levels
How does population affect demand?
Since shelter is a basic human need, demand grows with population. If a population becomes stagnate or decreases, real estate demand will also decrease.
This usually happens because of either economic changes (such as business closings), social concerns (desire for quality schools or more open space), or population changes (such as a shift from cold to warm climates)
Demographics
The study and description of population
How does demographics affect demand?
Demographics will determine the quantity and type of housing in a community. The type of housing will depend on family size, adult : children, number of retirees, family income, lifestyles, number of single family and empty nester households.
Niche marketing
refers to the targeted marketing of specific demographic populations
How does employment and wage levels affect demand?
It will influence housing affordability.
When job opportunities or wage levels low, demand will also become low.
If a major employer were to shut down or move to a different community, it will drastically affect the market by influencing people to move to a different community for a different job opportunity (which lowers demand for their previous area), or take a job with lower wages offered (which will affect the demand for the types of homes they will be able to afford)