Real Estate Principles Study Set 1

Business

Quiz 1 :

The Nature of Real Estate and Real Estate Markets

Quiz 1 :

The Nature of Real Estate and Real Estate Markets

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Which of the following attributes of a home are the most difficult to observe and value
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The most influential site and structural attributes of a home are typically observable and amenable to valuation. Information about a property's location attributes is much more difficult to observe and value because numerous external effects (example: schools, market, etc.) act upon a land parcel at any location and these effects are reflected in the parcels value.
Therefore the correct answer is C Location attributes

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Real estate markets differ from other asset classes by having all of the following characteristics except:
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Real Estate assets and markets are unique when compared to other goods. Their two primary characteristics are heterogeneity and immobility. Heterogeneous means each property has unique features. Homogeneous means the goods are not unique.
Therefore the correct answer is D Homogeneous product

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What is the single largest asset category in the portfolio of a typical U.S. household
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The US Federal Reserve Board reported that housing represents the single largest asset category in the net worth portfolio of households.
Therefore the correct answer is a Housing

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Explain the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets
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Real estate assets and markets are unique when compared to other assets or markets. Discuss the primary ways that real estate markets are different from the markets for other assets that trade in well-developed public markets.
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Identify and describe the interaction of the three economic sectors that affect real estate value.
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The United States represents about 6 percent of the earth's land surface, or approximately 2.3 billion acres. Who owns this land What is the distribution of this land among the various uses (e.g., developed land, federal land, forestland)
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The market in which required rates of return on available investment opportunities are determined is referred to as the:
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How much of the wealth of a typical U.S. household is tied up in real estate How does this compare to the role that assets and investments play in the portfolios of U.S. households
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The actions of local, state, and federal governments affect real estate values:
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What portion of households own their house
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Real estate construction is a volatile process determined by the interaction of the user and capital markets. What signals do real estate producers use to manage this process What other factors affect the volatility of real estate production
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Storm water drainage systems are best described as:
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A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a:
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Describe the value of U.S. real estate by comparing it to the values of other asset classes (e.g., stocks, bonds).
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Of the following asset categories, which has the greatest aggregate market value
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The term real estate can be used in three fundamental ways. List these three alternative uses or definitions.
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Which of the following is not important to the location of commercial properties
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