Chapter 15

Question 1

Real Estate are

Answer 1

Indestructible
Long term investment
Non homogeneous
Land does not depreciate, only improvements depreciate

Question 2

Government interference in Real Property is known as

Answer 2

PETE or
Police Power
Escheat
Taxation
Eminent Domain

Question 3

Real Estate demand is influenced by

Answer 3

Price of real estate in the area
Population of household competition
Income of consumers
Availability of mortgage credit
Consumer taste or preferences

Question 4

Real Estate supply is influenced by

Answer 4

Availability of skilled labor
Availability of construction loans and financing
Availability of land
Availability of materials

Question 5

Market condition indicators

Answer 5

Price levels
Vacancy rates
Sales volume
Area preference
Market adjustment

Question 6

Three major indicators in the real estate market are

Answer 6

Vacancy rates - too high means too little movement

Prices/Sales information

Building Permits