Real Estate - Chapter 1 The Real Estate Business
Mortgage Brokers
A broker who arranges a loan between a lender and a borrower for a fee
General Contractor
A contractor whose principal business is in connection with any structure being built (or to be built), requiring in its construction the use of at least two unrelated building trades or crafts.
Interest rates are changing. If they are going, this has a direct impact on buyers and the supply and demand of properties because...?
A higher interest rates means the cost of borrowing money increases, reducing the amount borrowers can afford
What is scarcity?
A lack of supply
Architects
A licensed professional who designs buildings with construction documents and specifications
First-time home buyers want to buy a house they can afford. They have no idea what they might qualify for, and their agents said they should get pre-qualified before they begin looking at houses. They need to see...?
A mortgage broker or banker
Real Estate Broker
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.
Property Manager
A person who manages properties for an owner as the owner's agent.
Home Inspector
A qualified professional trained and experienced in evaluating building and their components
The difference between a real estate broker and a real estate agent is...?
A real estate broker can do everything an agent can do, plus they can establish their own business and manage a team of real estate agents.
Sam is looking for a warehouse, and he wants to find a real estate agent or broker who is knowledgeable in this area. He's starting a business, and it will require space for assembly and production, but he also needs to be able to use it for distribution, warehousing, and research and development. He needs to find...?
An agent who specializes in industrial properties
Real Estate Salesperson
An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.
Real estate agents work with...?
Buyers and sellers, or just buyers or just sellers
If supply increases and demand decreases, prices will...
Decrease
To become a real estate broker, a person must have...?
Experience as an agent, a broker's license, and additional eduction.
Examples of Industrial Property
Factories & Warehouses
What is agriculture property?
Farmland
If supply decreases and demand increases, prices will...
Increase
One of the neighborhoods in Julie's community has suffered a downturn. there are not many jobs nearby, some homes have been abandoned, and the population has been transient. this means that the prices for t6he homes that are for sale there should be...?
Lower than average, because the demand is low
Examples of Commercial Property
Office Buildings, retail Buildings, & 5+ UnitMulti-Family Residential Building
Appraiser
One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes.
Factors that affect demand
Population, demographics, employment and wage levels.
What is vacant land?
Raw Land
What is Mixed-Use property?
Residential & Commercial Property (retail on the bottom & apartments above)
Properties that include single family homes and multi-family buildings are...?
Residential Properties
Factors that affect supply
Scarcity (fixed amount of real estate), Cost of construction & Government Controls (Zoning, Building Codes, Land-Use Controls)
Examples of Special Purpose property
School, Churches & Government Buildings
In her real estate business, Leah discovers she likes working with first-time buyers and wants to make it her speciality. That means...?
She will become an expert in this niche and build her reputation around it
Examples of Residential Property
Single Family Homes, Duplezes, Triplexes & Fourplexes
While there are several factors that affect the real estate market, they are all related in some way to...?
Supply and Demand
What is supply?
The amount of a certain good or service that is available in the market
Real estate brokers are paid a commission for the sales, and...?
The commission, which can vary, is split between the broker and agent.
In real estate, an example of supply and demand would be...?
The number of properties available and the number of potential buyers, respectively
What is demand?
The supply of willing and able buyers in the marketplace or lack thereof
A real estate salesperson is a licensed agent who negotiates and arranges real estate sales. Agents must...?
Work under a real estate broker