Terms 1

Question 1

Real Estate Business

Answer 1

A big business with complex transactions and millions of people involved.

Question 2

Brokerage

Answer 2

the business of bringing people together in a real estate transaction (ch 5)

Question 3

Appraisal

Answer 3

the process of estimating the market value of real property (ch 18)

Question 4

Property Management

Answer 4

the business of managing real estate to protect the owner’s investment and maximize the owner’s return (ch 17)

Question 5

Financing

Answer 5

the business of arranging for or providing funds for real estate transactions ( ch 14, 15)

Question 6

Subdivision and development

Answer 6

the activities of dividing a large parcel of real estate into smaller ones and constructing improvements on the land (19)

Question 7

Home inspection

Answer 7

the activities involved in conducting a visual survey of a property’s site condition, structure, and systems, and preparing an analytical report useful to both the buyers and homeowners (21)

Question 8

Counseling

Answer 8

the activity of providing clients with competent and independent information and advice to assist in their real estate investment decisions.

Question 9

Education

Answer 9

the provision of real estate education opportunities to both practitioners and consumers

Question 10

Others

Answer 10

settings in which real estate expertise is required, such as the practice of law, corporations with extensive land holdings, and government agencies

Question 11

NAR

Answer 11

National Association of REALTORS- Largest trade organization, comprises state, regional, and local associations

Question 12

NAREB

Answer 12

National Association of Real Estate Brokers

Question 13

ASA

Answer 13

American Society of Appraisers

Question 14

NAIFA

Answer 14

National Association of Independent Fee Appraisers

Question 15

REEA

Answer 15

Real Estate Educators Association

Question 16

REBAC

Answer 16

Real Estate Buyers Agent Council

Question 17

NAEBA

Answer 17

National Association of Exclusive Buyer’s Agents

Question 18

BOMA

Answer 18

Building Owners and Managers Association

Question 19

CCIM

Answer 19

Certified Commercial Investment Managers

Question 20

ASHI

Answer 20

American Society of Home Inspectors

Question 21

Types of Real Property

Answer 21

Residential- single family, modular, condos
Commercial- office, retail, marinas, mixed use
Industrial- factories, warehouses, power plants
Mixed Use- high rise residential with retail lower
Agricultural- farms, orchards, feedlots, timberland
Special Purpose- church, school, cemetery, gov

Question 22

Markets for each type of property

Answer 22

Buying, selling, leasing

Question 23

Market

Answer 23

specific place or economic system where goods are bought and sold

Question 24

Supply and Demand

Answer 24

economic forces that set prices for products

Question 25

Characteristics of RE affecting S and D

Answer 25

uniqueness immobility effect of natural disasters or changes in financial markets of local events

Question 26

Factors affecting Supply

Answer 26

Labor force construction and material costs gov controls at all levels gov financial policies

Question 27

Factors affecting Demand

Answer 27

Population demographics- make up of population including mobility, financial stability, and size and nature of family unit employment and wage levels- where and how money is spent, perceived job security