Real Estate Business

Question 1

A professional opinion of a property’s market value, based on established methods and using trained judgement, is performed by

Answer 1

A real estate appraiser

Question 2

Prices in the real estate market are established by

Answer 2

Supply and demand

Question 3

Mixed-use real estate is property that allows for

Answer 3

Two uses – commercial and residential – in the same building

Question 4

Industrial real estate includes

Answer 4

Warehouses, factories, land in industrial districts, and power plants

Question 5

Which factor primarily affects supply in the real estate market?

Answer 5

Government monetary policy

Question 6

What is real estate appreciation?

Answer 6

An increase in value

Question 7

What doesn’t affect real estate demand?

Answer 7

Monetary policy

Question 8

The supply of homes on the market decreases, but demand remains steady. What will happen to the price of homes?

Answer 8

It will increase

Question 9

What is not a category of use of real property?

Answer 9

Developmental

Question 10

Property management, appraisal, financing, and development are all examples of

Answer 10

Specialization within the real estate industry

Question 11

Special purpose real estate includes

Answer 11

Churches, schools, cemeteries, and govt-held lands

Question 12

What demographic metric wouldn’t affect supply if increased

Answer 12

Population

Question 13

Property managers basic responsibility is to

Answer 13

Protect owners investment and maximize return

Question 14

Property management, appraisal, financing, development are all

Answer 14

Separate professions within the real estate industry

Question 15

Nationwide Multistate Licensing system and Registry was created to register

Answer 15

Mortgage loan originators

Question 16

Person who performs a visual survey of a property structure and writes a report for a buyer is

Answer 16

A home inspector

Question 17

Difference between the cost basis of property and its net selling price is

Answer 17

Capital gain

Question 18

Another name for depreciation

Answer 18

Cost recovery

Question 19

The business of bringing people together in a real estate transaction

Answer 19

Real estate brokerage

Question 20

Process of developing an opinion of a property’s market value based on established methods

Answer 20

Appraisal

Question 21

Splitting a single property into smaller parcels

Answer 21

Subdivision

Question 22

Two characteristics of real estate govern the way the market reacts to the pressures of supply and demand.

Answer 22

Uniqueness and Immobility