Chapter 14

Question 1

Reciprocal License

Answer 1

allows you to practice real estate in more than one state

Question 2

Zoning Categories (4)

Answer 2

Residential
Commercial
Industrial
Agricultural

Question 3

Brokerage

Answer 3

business of interacting with buyers, sellers, landlords, and tenants

Question 4

Appraisal

Answer 4

process of estimating value

Question 5

Property Management

Answer 5

maintain and manage property for owner, protect value of investment and maximize profit for owner
solicit tenants, collect rent, oversee maintenance

Question 6

Counselor

Answer 6

furnishes independent advice to help investors make informed decisions; must have a broker’s license

Question 7

Buyer’s Market

Answer 7

too much inventory; supply increases, demand remains stable, prices go down

Question 8

Seller’s Market

Answer 8

too little inventory; supply decreases, demand remains stable, prices go up

Question 9

Uniqueness

Answer 9

no two parcels are exactly alike

Question 10

Immobility

Answer 10

property cannot be relocated to satisfy demand

Question 11

Factors Affecting Supply

Answer 11

Labor force
Construction and material costs
Gvt. controls and fiscal policy

Question 12

Factors Affecting Demand

Answer 12

Population
Demographics
Employment and wage levels