Unit 1: Modern Real Estate Practice in Illinois Flashcards

Unit 1: Modern Real Estate Practice in Illinois Flashcards

2.) In general, when the supply of a certain commodity increases,A.) prices tend to riseB.) prices tend to dropC.) demand tends to riseD.) demand is unchanged 3.) Which of these factors tends to affect supply in the real estate market?A.) PopulationB.) DemographicsC.) Employment and wage levelsD.) Government financial polices

• Local government can influence the supply of

realestate byA. land-use controls.B. zoning ordinances.C.building codes.D. all of these.

• all of these.

B.) method of estimating a property's market value based on established methods and the appeasers' professional judgement.

13.) The Federal Reserve BoardA.) monitors the Federal Housing AdministrationB.) monitors nationwide construction costs.C.) establishes a discount rate of interest for the money it lends to its members banks.D.) establishes real estate appraisal standards.

5.) Property management, leasing, appraisal, financing, and development are all examples ofA.) specializations within the real estate industry.B.) factors affecting demand.C.) non- real estate professions.D.) government regulations of the real estate transaction A.) specialization within the real estate industry

• A real estate professional who performs a visual survey

of a property's structure and systems and prepares an analytical report for a purchaser or an owner is acting asA.) an educator.B.) a home inspector.C.) an appraiser.D.) a property manager.B.) a home inspector.

1.) A professional opinion of a property's market value, based on established methods and using trained

professional judgement, is performed by a:A.) real estate

brokerB.) real estate counselorC.) real advisorD.) home inspector C.) real estate appraiser 6.) REALTOR isA.) a specially licensed real estate broker.B.) any real estate broker who assists buyers, sellers, landlords, or tenants in any real estate transaction.C.) a member of the National Association of Real Estate Brokers who specializes in residential properties.D.) a real estate licensee who is a member of the National Association of REALTORS.D.) a real estate license who is a member of the National Association of REALTORS.

• When the supply of a commodity decreases while

demand remains the same, price tends toA.) drop.B.) not be affected.C.) rise.D.) go in the direction of supply.

• When responsible for maintaining a client's property

and maximizing the return on the client's investment, a real estate licensee is serving asA.) a rental agent.B.) a property manager.C.) a building maintenance specialist.D.) an investment counselor.

10.) Schools are considered part of which real estate classification?A.) Special-purposeB.) IndustrialC.)

CommercialD.) Government-held 11.) When demand for a commodity decreases and supply remains the same,A.) price tends to rise.B.) price is not

affected.C.) price tends to fall.D.) the market becomes stagnant 14.) All of these categories of the uses of real property EXCEPTA.) developmental.B.) residential.C.) agricultural.D.)industrial.A.) developmental.

9.) The term REALTOR refers toA.) any real estate licensee.B.) a real estate licensee specializing in residential properties.C.) a real estate educator.D.) a member of the National Association of REALTORS.D.) a member of the National Association of REALTORS.C.) price tends to fall.12.) The term appraisal is defined as theA.) process of the splitting a single property into smaller parcels.B.) method of estimating a property's market value based on established methods and the appeasers' professional judgement.C.) transfers of funds in the financing of real estate transactions.D.) process of providing clients with competent independent advice.

15.) All of these would affect overall demand in the real estate market EXCEPTA.) population.B.) demographics.C.) wage levels.D.) zoning ordinances.D.) zoning ordinances.

8.) A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee's profession?A.) Real estate appraiserB.) Real estate educatorC.) Real estate counselorD.) REALTORS C.) Real estate counselor 7.) A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect with this announcement MOST likely have on the small town's housing market?A.) Housing will become less expensive.B.) Housing will become more expensive.C.) The announcement involves an issue of demographics, not a supply and demand issue; housing prices will stay about the same.D.) The announcement involves an industrial property; residential housing will not be affected.B.) Housing will become more expensive.B.) a property manager.20. Detailed information about the age, education, behavior, and other characteristics of members of a population group is calledA.) Population analysisB.) DemographicsC.) Family lifestylesD.) Household data 4.) Which factor MOST likely influences the demand for real estate?A.) Labtructioor forceB.) Consn costsC.) Wage levels and employmentD.) Government controls and finial polices C.) Wage levels and employment