Fundamentals of Real Estate|2023 LATEST UPDATE|GUARANTEED SUCCESS

real estate Land and fixed improvements residential property Used as dwellings for one or more occupants, can be owned, rented or leased. 00:34 01:34 Recreational Property land used for leisure activities, such as parks, forests, time-shares and campgrounds commercial property Business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities industrial property Warehouses, factories, land in industrial districts, and power plants Retail Property Includes storefronts, shopping centers, malls Institutional Property Buildings with a specialized use, schools, laboratories, hospitals, government buildings Agricultural Property A building designed and constructed to house farm implements, hay, grain, poultry, livestock or other horticultural products. Considered rural real estate What are the 4 real estate sectors Residential Rural Commercial Property Management Classes of Real Estate Professionals Associate Brokers Associate Broker Brokerage Fixed Real Estate immobile Decrease interest rates = higher demand 00:01 01:34 GDP Gross Domestic Product spending+investment+government spending + (exports-imports) GNP (Gross National Product) GDP+net income inflow from abroad - Net income outflow to foreign countries Balanced Market Where demand for property equals the supply of available property. Sellers usually accept reasonable offers and houses generally sell in sufficient time periods. Prices remain stable and there is usually a good number of homes to choose from. Buyer's Market The best time for consumers to buy; characterized by large supply, small demand, and low prices. Seller's Market The best time for producers to sell; characterized by large demand, small supply, and high prices business cycle Fluctuations in economic activity, such as employment and production expansion occurs when the economy is experiencing positive and increasing economic output prosperity low levels of unemployment; high levels of consumer demand and production; increase buying power; greater availability for credit; higher inflation peak the height of an economic expansion, employment is at/near its highest and inflation accelerates contraction a period of economic decline marked by falling real GDP Recession marked by 2 consecutive quarters(6 months) of negative GDP. Less spending, low demand Trough Lowest point of a cycle, unemployment is at its highest, level of production is at its lowest recovery a rise in business activity after a recession or depression market bubble The over expansion of a market due primarily to excessive buyer confidence resulting in inflated values. Real estate bubbles, when a burst occurs, can have significant negative impact on the overall economy. bubble burst A situation when an asset price differs from its fundamental value is called a ( ) which is doomed to ( ) as often can be seen in the stock and housing markets.