Real estate unit 1 flashcards

Nature of Land

Refers to the characteristics that define land, including economic and physical attributes.

Economic Characteristics

Include scarcity, improvements, permanence of investment, and area preference (situs).

Physical Characteristics

Include immobility, nonhomogeneity, and indestructibility of land.

Value

The present worth of a property’s future benefits, influenced by objective or subjective factors.

Price

The amount determined by the marketplace for a property.

Market

A place where goods and services are exchanged, establishing stable prices.

Supply

The amount of goods available at a given price in the market.

Demand

The quantity consumers are willing to purchase at a given price.

Factors Affecting Supply and Demand

Include population changes, wage and employment levels, construction costs, and government policy.

Price Movements

Occur when demand decreases (prices fall) or supply decreases (prices rise).

Business Cycles

Comprise four stages:Expansion, Recession, Depression, and Revival.

Real Estate Cycles

Parallel general business cycles but may not coincide exactly.

Real Estate Services

Include selling, leasing, appraisal, property inspection, development, financing, and urban planning.

Multi-Disciplinary Competence

Required in real estate due to its complex and competitive nature.

Property Classification

Categories include residential, commercial, industrial, agricultural, special purpose, or mixed-use.

Broker Specialization

Many brokers focus on specific property types.

Legal Framework

Comprises sources of law including the U.S. Constitution, federal and state laws, state constitutions, local ordinances, and court decisions.

Federal and State Regulations

Expand on statutory law in real estate.

Real Estate Law in Texas

Influenced by English common law and Spanish law, governed by the Texas Real Estate License Act.

Texas Real Estate Commission

Oversees the implementation of real estate laws in Texas.

Professional Organizations

Help keep real estate professionals updated on industry practices.

Notable Organizations

Include the National Association of REALTORS®, Texas REALTORS®, and the American Society of Home Inspectors.