Modern Real Estate Practice 21st Edition - Unit 1: Introduction to the

Modern Real Estate Practice 21st Edition - Unit 1: Introduction to the

Real Estate Business Flashcards Supply and DemandAn economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply).Factors Affecting SupplyLabor force availability, construction and material costs, government controls, and financial policies.Counselinginvolves providing clients with competent independent advice based on sound professional judgement Government Controls and Monetary Policy. The Federal Reserve Board establishes a discount rate of interest for the money it lends to commercial banks. The discount rate directly impacts the interest rates banks charge borrowers, greatly affecting the public's ability to buy homes.The Federal Housing Association(FHA), Federal National Mortgage Association(Fannie Mae), and the Government National Mortgage Association(Ginnie Mae) can all affect the amount of money available to lenders for mortgage loans.EducationReal Estate Education is available to both practitioners and consumers. Multiple institutes and organizations conduct real estate courses and seminars covering topics from principles of a pre-licensing program to technical aspects of tax and exchange law.To be successful, a Real Estate professional must:- Have a deep understanding and knowledge of real property and real estate laws.- Have basic knowledge of the specialized fields of real estate and how they impact the industry.- Stay informed of business plans of employers in the area- Be updated on economic trends and other trends that effect the real estate industry and anticipate where those trends with lead.Types of Real Property- Residential- Commercial- Industrial- Agricultural- Mixed-use- Special Purpose Factors affecting Demand- Population- Demographics- Employment and wage levels.DevelopmentInvolves preparation of a site and construction of structures and or other improvements.Fair Housing ActThe federal law that prohibits discrimination in housing and housing services based on race, color, religion, sex, familial status, disability, and national origin.Types of Housing- Single-family detached house.- Apartment building.- Condominium.- Cooperative.- Planned unit developments(master-planned communities).- Mixed-use

developments.- Converted use properties.- Factory-built housing(mobile, modular, manufactured, and 3D printed housing).Home InspectionA thorough inspection by a professional that evaluates the structural and mechanical condition of a property. It's

important to both the buyers and homeowners.

Supply and Demand in the Real Estate market Two characteristics of real estate govern the way the

market reacts to the pressures of supply and demand:

uniqueness and immobility.