NC REAL ESTATE UNIT 1 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS
Describe the advantages of real estate investments - Answer- 1. Historically good rate
of return
2. Generally keep pace with rate of inflation
3. If held long enough, the asset will yield more than it costs to finance the purchase
Describe the disadvantages of real estate investments - Answer- 1. Slow to liquidate
2. Difficult to invest in without some level of expert advice
3. HIGH DEGREE OF RISK, there is always a possibility of depreciation
Explain the operation of supply and demand in the real estate market - Answer- Real
estate is not standardized, it is unique and has its own geographic location. Because it
is immobile, it cannot be moved to satisfy pressures of supply and demand. Because
the real estate market is not standardized or mobile, the market will be relatively slow to
adjust to supply and demand.
Define "Tenements" - Answer- Any structures attached to the land
Define "hereditaments" - Answer- Any interests in real estate capable of being inherited
Define "Counseling" - Answer- Provide competent independent advice and guidance on
a variety of real estate problems
5 Categories of real estate according to its use - Answer- 1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose (churches, schools, cemeteries, govt. land etc.)
What is it called when supply and demand are balanced? - Answer- Point of equilibrium
Elements of "supply" in supply vs. demand - Answer- Labor Force
Construction Cost
Government Controls
Financial Policies (loans)
Elements of "demand" in supply vs. demand - Answer- Population
QUESTIONS WITH 100% CORRECT
ANSWERS
Describe the advantages of real estate investments - Answer- 1. Historically good rate
of return
2. Generally keep pace with rate of inflation
3. If held long enough, the asset will yield more than it costs to finance the purchase
Describe the disadvantages of real estate investments - Answer- 1. Slow to liquidate
2. Difficult to invest in without some level of expert advice
3. HIGH DEGREE OF RISK, there is always a possibility of depreciation
Explain the operation of supply and demand in the real estate market - Answer- Real
estate is not standardized, it is unique and has its own geographic location. Because it
is immobile, it cannot be moved to satisfy pressures of supply and demand. Because
the real estate market is not standardized or mobile, the market will be relatively slow to
adjust to supply and demand.
Define "Tenements" - Answer- Any structures attached to the land
Define "hereditaments" - Answer- Any interests in real estate capable of being inherited
Define "Counseling" - Answer- Provide competent independent advice and guidance on
a variety of real estate problems
5 Categories of real estate according to its use - Answer- 1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose (churches, schools, cemeteries, govt. land etc.)
What is it called when supply and demand are balanced? - Answer- Point of equilibrium
Elements of "supply" in supply vs. demand - Answer- Labor Force
Construction Cost
Government Controls
Financial Policies (loans)
Elements of "demand" in supply vs. demand - Answer- Population
