Real Estate 306 Exam 1 2025/2026 Exam
Questions and Detailed Answers | Get it
1
100% Correct Answers
real estate - 🧠 ANSWER ✔✔physical asset
anything that can be owned or possessed; RIGHTS from owning property
if you have right of possession, you own real estate
profession and an industry
real estate as a physical asset - 🧠 ANSWER ✔✔is the land and all
permanent attachments to the land and anything it is suitable for; ex. fixed
structures or parking garage potential
real estate as a bundle of rights - 🧠 ANSWER ✔✔it is the services/benefits
real estate provides ex. shelter, privacy etc
also have air rights, surface rights, mineral, oil and gas rights
can pick an choose sticks in the bundle of "ownership rights"
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,real property vs personal property - 🧠 ANSWER ✔✔real property = anything
immovable, ex land, home, anything attached to the land, permanent
2
personal property = something that can be moved like RV or furniture
what are the three different markets in RE - 🧠 ANSWER ✔✔user markets
capital markets
property markets
user market - 🧠 ANSWER ✔✔competition among users for physical
location and space. competition determines the price of each land parcel
creates supply and demand
user market for physical real estate - 🧠 ANSWER ✔✔buyers receive the
right to use space
rental rates are determined by supply and demand
demand: individuals, households, and firms who require space for
consumption or production purposes
supply: real estate owners/operators who rent space to tenants
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,capital markets - 🧠 ANSWER ✔✔allocate financial resources among
households and firms requiring funds
3
ex. stocks, bonds, mortgage contracts... anything that will give a financial
return
provides equity and debt
property markets - 🧠 ANSWER ✔✔determine required property specific
investment returns, values, etc
intersection of user and capital markets
other characteristics of real estate markets - 🧠 ANSWER ✔✔high
transaction costs b/c expensive to enter and exit market (time and $)
real estate is illiquid, fewer buyers
high asset value - debt financing is needed
long economic life
traditions - symbol of power, stability (people want to won homes, white
house)
capitalization rate - 🧠 ANSWER ✔✔ratio of property's annual net income
from rental operations to its value
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, net income/price of property
role of government on real estate - 🧠 ANSWER ✔✔local government =
4
most influential, property taxes, fees, construction restrictions
state government = least influential, sets requirements for local
governments
federal government = housing subsidies, income tax policies,
environmental policies
explain why real estate is heterogeneous - 🧠 ANSWER ✔✔each property
has unique features... even homes that are built exactly the same are
different because they're in different locations
what is a localized market - 🧠 ANSWER ✔✔homes are near other homes,
apartments are near other apartments. this increases competition in the
market
what is a segmented market - 🧠 ANSWER ✔✔people looking for homes are
not going to look for them in a condo market. they will stay in the localized
home market. this is why there are different segments in real estate
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Detailed Answers | Get it
1
100% Correct Answers
real estate - 🧠 ANSWER ✔✔physical asset
anything that can be owned or possessed; RIGHTS from owning property
if you have right of possession, you own real estate
profession and an industry
real estate as a physical asset - 🧠 ANSWER ✔✔is the land and all
permanent attachments to the land and anything it is suitable for; ex. fixed
structures or parking garage potential
real estate as a bundle of rights - 🧠 ANSWER ✔✔it is the services/benefits
real estate provides ex. shelter, privacy etc
also have air rights, surface rights, mineral, oil and gas rights
can pick an choose sticks in the bundle of "ownership rights"
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,real property vs personal property - 🧠 ANSWER ✔✔real property = anything
immovable, ex land, home, anything attached to the land, permanent
2
personal property = something that can be moved like RV or furniture
what are the three different markets in RE - 🧠 ANSWER ✔✔user markets
capital markets
property markets
user market - 🧠 ANSWER ✔✔competition among users for physical
location and space. competition determines the price of each land parcel
creates supply and demand
user market for physical real estate - 🧠 ANSWER ✔✔buyers receive the
right to use space
rental rates are determined by supply and demand
demand: individuals, households, and firms who require space for
consumption or production purposes
supply: real estate owners/operators who rent space to tenants
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,capital markets - 🧠 ANSWER ✔✔allocate financial resources among
households and firms requiring funds
3
ex. stocks, bonds, mortgage contracts... anything that will give a financial
return
provides equity and debt
property markets - 🧠 ANSWER ✔✔determine required property specific
investment returns, values, etc
intersection of user and capital markets
other characteristics of real estate markets - 🧠 ANSWER ✔✔high
transaction costs b/c expensive to enter and exit market (time and $)
real estate is illiquid, fewer buyers
high asset value - debt financing is needed
long economic life
traditions - symbol of power, stability (people want to won homes, white
house)
capitalization rate - 🧠 ANSWER ✔✔ratio of property's annual net income
from rental operations to its value
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, net income/price of property
role of government on real estate - 🧠 ANSWER ✔✔local government =
4
most influential, property taxes, fees, construction restrictions
state government = least influential, sets requirements for local
governments
federal government = housing subsidies, income tax policies,
environmental policies
explain why real estate is heterogeneous - 🧠 ANSWER ✔✔each property
has unique features... even homes that are built exactly the same are
different because they're in different locations
what is a localized market - 🧠 ANSWER ✔✔homes are near other homes,
apartments are near other apartments. this increases competition in the
market
what is a segmented market - 🧠 ANSWER ✔✔people looking for homes are
not going to look for them in a condo market. they will stay in the localized
home market. this is why there are different segments in real estate
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
