Fin 3301 ch 1 sb

Real Estate is the source of nearly _______percent of local government property tax revenue.

20

As reported by the Federal Reserve Board, owner-occupied housing represents approximately _____ % of the net worth of a typical U.S. household. Multiple choice question. 21 11 27 15

21

Real Estate generates over ____% of the US GDP

25

Real estate, excluding primary residences, accounts for approximately_______percent of the world's total economic wealth.

25

Developed land represents about _____% of all land in the continental U.S Multiple choice question. 6 21 2 19

6

For a typical (average) household, equity in their home(s) is equal to about ___% of the value of their home(s) and about ____% of their net worth. Multiple choice question. 60, 15 40, 15 70, 20 50, 25

60, 15

True or false: Careers in real estate are limited primarily to brokerage and leasing.

F Other career paths include property management, appraisal, consulting, construction, and mortgage finance.

True or false: Rental rates for office properties in downtown Boston significantly affect office rental rates in downtown Atlanta.

False,Real estate markets are localized.

When most people are describing "real estate," they are describing the industry and people involved in buying and selling real estate land and buildings the bundle of rights associated with the ownership of land and buildings

First, its most common use is to identify the tangible assets of land and buildings. Second, it is used to denote the "bundle" of rights associated with the ownership and use of the physical assets. Finally, the term real estate may be used when referring to the industry or business activities related to the acquisition, operation, and disposition of the physical assets.

Which of the following contribute to the complexity of real estate transactions? Multiple select question. The complex bundle of rights associated with real estate ownership The high price of real estate The contiguous nature of all real estate parcels

The complex bundle of rights associated with real estate ownership The contiguous nature of all real estate parcels

The actions of local, state, and federal governments affect real estate values: primarily through user markets. primarily through the capital market. primarily through their taxation policies. Through all of the choices.

Through all of the choices.

In real estate markets, location can also be referred as

access

Which of the following is not important to the location of most commercial properties? Multiple Choice access to customers visibility access to schools availability of communications infrastructure

access to schools

What portion of households owns their house? Multiple Choice approximately one-third approximately two-thirds approximately one-half approximately one-quarter

approximately two-thirds

The term "real estate" Multiple select question. can be used to describe the bundle of rights associated with ownership of the physical assets can be used to identify land and buildings should not be used to describe the business activities related to the physical assets

can be used to describe the bundle of rights associated with ownership of the physical assets can be used to identify land and buildings

The market in which required rates of return on available investment opportunities are determined is referred to as the: property market. user market. housing market. capital market.

capital market

Of the following asset categories, which has the greatest aggregate market value? Multiple Choice corporate equities mortgage debt government debt nongovernment real estate

corporate equities

According to the data presented in the text, the largest asset class in terms of estimated market value is: Multiple choice question. U.S. Treasury securities real estate (including housing) mortgage debt corporate equities (stocks)

corporate equities (stocks)

A household's equity in their home is defined as the: Multiple choice question. purchase price of the home minus outstanding mortgage debt current value of the home current market value of the home minus outstanding mortgage debt

current market value of the home minus outstanding mortgage debt

The process of converting expected future cash flows into present value is called ______. Multiple choice question. compounding investing discounting

discounting

True or false: The activities of federal, state, and local governments have little need for the services of real estate professionals.

false

Real estate markets differ from other asset classes by having all of the following characteristics except: Multiple Choice local market. high transaction costs. segmented market. homogeneous product.

homogeneous product.

Among the following four categories, which is the largest asset category in the portfolio of the average U.S. household? Multiple Choice housing stocks deposits and money market funds government and corporate bonds

housing

Storm water drainage systems are best described as: Multiple Choice tangible assets. improvements to the land. intangible assets. improvements on the land.

improvements to the land.

______ government generally has the largest influence on local real estate markets. Multiple choice question. Federal State Local

local

Real estate markets are ______ because ______ Multiple choice question. immobile; potential users are widely dispersed localized; competing properties are widely dispersed localized; competing properties are generally in close proximity

localized; competing properties are generally in close proximity

Which of the following attributes of a home are the most difficult to observe and value? Multiple Choice land/site attributes structural attributes location attributes financing attributes

location attributes

Each parcel of real estate has its own "LVS," which stands for

location value signature

The attributes (characteristics) of housing most difficult to value are Multiple choice question. the physical attributes of the land locational attributes the physical attributes of the structure

locational attributes

Housing equity is defined as Multiple choice question. real estate value of home minus net worth market value of the home minus mortgage debt. mortgage debt minus market value of the home. net worth minus real estate value of home

market value of the home minus mortgage debt.

A home owner's bundle of rights is ______ affected if a local utility company has the right to access telephone poles in the owner's back yard. Multiple choice question. negatively positively not

negatively

Select all that apply Tangible assets include: Multiple select question. office furniture land stock options cars

office furniture land cars

Participants in real estate "user" markets include Multiple select question. owners lenders renters investors

owners renters

Characteristics that stock and bond investment share with real estate investments include Multiple select question. potential periodic income immobility transferability to other owners potential appreciation in the value of the investment

potential periodic income transferability to other owners potential appreciation in the value of the investment

The ______ of real estate markets contribute(s) to segmentation. Multiple select question. price differences localized nature immobility importance

price differences localized nature immobility

Land and its permanent structures are _____property.

real

All else equal, a rise in the general level of interest rates Multiple choice question. increases property values but does not typically affect construction reduces property values and therefore tends to increase construction reduces property values and therefore tends to slow construction

reduces property values and therefore tends to slow construction

The visibility of a property from the street is usually most important for Multiple choice question. retail properties warehouse properties storage facilities

retail properties

A football field, not including the end zones, is ________ Multiple choice question. slightly more than one acre equal to one acre slightly less than one acre

slightly more than one acre

The licensing of real estate professionals is usually done at the ______ level. Multiple choice question. city federal state county

state

Participants in capital markets include Multiple select question. stock investors potential tenants in office properties bond investors mortgage investors

stock investors bond investors mortgage investors

According to the Federal Reserve Bank, ______ represents the largest percentage of the net worth portfolio of a typical U.S. household. Multiple choice question. corporate and foreign bonds housing stocks U.S. Treasury securities

stocks

The investment returns investors require on available investment opportunities are primarily determined in: Multiple choice question. user markets the capital markets property markets

the capital markets

Real property is defined as: things permanently affixed to the land or structure things easily removed from the land or structure all residences with a physical address

things permanently affixed to the land or structure

Characteristics that stock and bond investment share with real estate investments include Multiple select question. transferability to other owners potential appreciation in the value of the investment potential periodic income immobility

transferability to other owners potential appreciation in the value of the investment potential periodic income

A distinctive feature of real estate is the complexity of property and transactions. True false question.TrueFalse

true

True or false: Better real estate decisions affect the productivity of individuals, firms, and local markets.

true

New construction of a particular type of real estate generally does not occur Multiple choice question. until occupancy levels are stagnant over time unless current property values exceed construction costs until interest rates are low enough

unless current property values exceed construction costs

A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: capital market property market. user market. housing market.

user market

"Investment-grade" properties are typically Multiple select question. occupied by their owners rather than other users leased to immobile investors valued at more than $10 million purchased by institutional investors

valued at more than $10 million purchased by institutional investors