Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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) |