Chapter 19: The Real Estate Market Flashcards
The four agents of production are (CELL):
- ______
- ______
- ______
- ______
Capital
Entrepreneurial ability
Land
Labor
Supply of real estate includes vacant properties, under construction, permitted projects, and ______
announced projects
_______ is based on price, income, credit, population, and customer preference.
Demand
When there are more buyers than sellers, a ______ market exists.
Seller’s
Each parcel of land is _____ or _____. It is not a homogenous product.
Unique or different
Supply and demand in a residential market is thought to be balanced when a vacancy ratio is at ______.
5%
The real estate market is ______ in nature.
local
The influence of value based on location is called _____.
Situs
Combining two or more parcels is called _______.
Assemblage
If the combined value of two parcels is greater than their individual value, the increase is known as ______.
Plottage value
The real estate market is _____ to respond to demand.
slow
Neighborhood life cycle: growth period, stability, decline, and _________.
revitalization
Highest and best use is based on 4 criteria: legally permissible, physically possible, financially feasible, and ________.
maximally productive
The use that creates the highest return on the land is the _____ and _____ use.
highest and best
A ______ market exists when there is excess supply.
buyer’s
