Real Estate 306 Exam Questions with Correct Answers Rated 100%
What defines the urban market? - Answers i. Access - how easy is it to get to the things that people want
to do? (location)
ii. Economic base - how does the community make its money?
iii. Quality of Life - how happy are people?
How does a city get shaped? - Answers i. Demand for proximity
ii. Changes in transportation
iii. Changes in technology
Market Research: What questions get asked? - Answers i. What is the product?
ii. Who are the customers?
iii. Where are the customers?
iv. What do the customers care about?
v. Who are the competitors?
Market Research: Story Approach - Answers 1. Will tell a story about the locale. Focus on the property
initially.
2. More interesting
3. Ex. Tell a story about Madison, WI
Market Research: Conventional Approach - Answers 1. Talk about the market in broad terms and then
go and get more specific
2. Ex. Start with the U.S., then the Midwest, then Wisconsin, then Madison
3. More dry
3 Techniques for Market Research - Answers i. Excluding the Irrelevant
1. Compile public data that already exists
2. Get rid of what isn't relevant
ii. Find Proxy Tables
1. Find a corollary -> occupancy of all
apartments may be used to try to find the
, occupancy of 4 bedroom apartments
iii. Using an Analogy (Parallel)
1. Find something similar to what already
exists
2 Types of Brokers - Answers 1. Sale/purchase broker
2. Leasing broker
2 Types of Broker Licenses - Answers 1. Licensee/salesperson (beginner level)
2. Broker
Brokers have 3 types of special knowledge - Answers i. Know the market/know pricing
1. Housing stock available
2. Buyers are in marketplace
ii. Marketing approaches
iii. Procedures & requirements of the transaction
Duties & Responsibilities of Broker - Answers Law of Agency
1. Confidentiality
2. Obedience
3. Accounting - if brokers handle funds (earnest money), brokers must account for that money
4. Loyalty - issue: incentivized to get the deal done
5. Disclosure - must disclose material information
6. Degree of Skill & Care - must act using skill and a standard of care that brokers are expected to use
Principal must be.... - Answers OHF
Open, honest, and fair
How is the principal/agent (broker/client) relationship formed? - Answers 1. Listing contract
a. Creates agency relationship
b. Service contract
What defines the urban market? - Answers i. Access - how easy is it to get to the things that people want
to do? (location)
ii. Economic base - how does the community make its money?
iii. Quality of Life - how happy are people?
How does a city get shaped? - Answers i. Demand for proximity
ii. Changes in transportation
iii. Changes in technology
Market Research: What questions get asked? - Answers i. What is the product?
ii. Who are the customers?
iii. Where are the customers?
iv. What do the customers care about?
v. Who are the competitors?
Market Research: Story Approach - Answers 1. Will tell a story about the locale. Focus on the property
initially.
2. More interesting
3. Ex. Tell a story about Madison, WI
Market Research: Conventional Approach - Answers 1. Talk about the market in broad terms and then
go and get more specific
2. Ex. Start with the U.S., then the Midwest, then Wisconsin, then Madison
3. More dry
3 Techniques for Market Research - Answers i. Excluding the Irrelevant
1. Compile public data that already exists
2. Get rid of what isn't relevant
ii. Find Proxy Tables
1. Find a corollary -> occupancy of all
apartments may be used to try to find the
, occupancy of 4 bedroom apartments
iii. Using an Analogy (Parallel)
1. Find something similar to what already
exists
2 Types of Brokers - Answers 1. Sale/purchase broker
2. Leasing broker
2 Types of Broker Licenses - Answers 1. Licensee/salesperson (beginner level)
2. Broker
Brokers have 3 types of special knowledge - Answers i. Know the market/know pricing
1. Housing stock available
2. Buyers are in marketplace
ii. Marketing approaches
iii. Procedures & requirements of the transaction
Duties & Responsibilities of Broker - Answers Law of Agency
1. Confidentiality
2. Obedience
3. Accounting - if brokers handle funds (earnest money), brokers must account for that money
4. Loyalty - issue: incentivized to get the deal done
5. Disclosure - must disclose material information
6. Degree of Skill & Care - must act using skill and a standard of care that brokers are expected to use
Principal must be.... - Answers OHF
Open, honest, and fair
How is the principal/agent (broker/client) relationship formed? - Answers 1. Listing contract
a. Creates agency relationship
b. Service contract
