Scribd
Upload
24 views

Exercises Unit 1

Uploaded by

ducminh16604
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views

Exercises Unit 1

Uploaded by

ducminh16604
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

UNIT 1.

REAL ESTATE AND REAL ESTATE MARKET


1. READING
Real Estate is the land itself and all things permanently attached to it. The definition of real
estate typically includes

• Land;

• Fixtures (attachments) to land;

• Anything incidental or appurtenant to land that benefits the landowner, such as an


easement right to use your neighbor’s driveway for access to your property; and

• Anything else that is considered immovable (part of the real estate) by law, except
for annually cultivated crops (called emblements) and other severable (removable)
things that are sold by a contract of sale that complies with the laws regulating the
sale of goods.
Any tangible items that are not permanently attached to real estate, and thus are not
considered fixtures, are classified as personal property. The attachment necessary for an
item to be considered a fixture would ordinarily be such that the item could be removed
only by causing serious damage to either the real estate or the item itself. A window air
conditioner would ordinarily be considered personal property, but if a hole were cut in a
wall expressly for the installation of the air conditioner, the unit would probably be
considered part of the real estate.
A market is simply a place for selling and buying. While we refer in this text to the local
real estate market, in many respects there never can be a truly local real estate market.
There may be locally occurring transactions (such as within a city or county), but all
transactions are affected to some extent by the wider market forces within the state, region,
and nation. The major forces-population level, strength of the economy, and availability of
financing-can be identified separately, yet they are interconnected.
Unlike the market for real estate, other goods and services are said to have efficient
markets. The factors that compose an efficient market include: products that are readily
exchangeable for other products of the same kinds; an ample supply of knowledgeable
buyers and sellers; little or no government regulation influencing value; relatively stable
prices; and easy product supply and transport.
A market that is at its most efficient is said to be a perfect market. Unfortunately, the market
for real estate is far from perfect. We can begin to define a real estate market by
understanding the special factors that influence real estate as a commodity. Every parcel of
real estate is considered unique and thus not interchangeable with any other parcel. Buyers
and sellers of real estate frequently are unsophisticated and lack knowledge of the factors
that make one parcel of real estate more valuable than another. The number of buyers and
sellers frequently moves away from a state of equilibrium to create either a seller’s market
(many more buyers than sellers) or a buyer’s market (many more sellers than buyers). Real
estate is intensely regulated, with regard both to the uses to which it can be put and to the
manner in which its ownership can be transferred. As a result of all these factors, as well
as the fact that real estate is immovable, prices can be highly volatile.
Questions
1. What is real estate? What are the differences between real estate and personal
property?
2. Is an air conditioner considered a part of real estate?
3. Why real estate market is not a truly local real estate market?
4. What are factors affect real estate market?
5. Is real estate market efficient? Why?
6. What are seller’s market and buyer’s market? Real estate market is a seller’s or
buyer’s market?
2. EXERCISES
2.1 Complete this paragraph about characteristic of real estate with words from
the box below

supply location needs

buyer and seller unique advertising

change improve immobile


Immobility of real estate
Because every parcel of real estate is (1)________ and (2)_________, some of the factors
that ordinarily affect supply and demand must receive somewhat different consideration.
A market is simply a forum for buying and selling, that is, a means for bringing together
(3)_________. For products other than real estate, the location of the product to be sold
affects shipping costs and thus is only one of a number of determinants that affect value.
The most important single factor in determining real estate value, however, is
(4)________.Land cannot be delivered to a location where it is in short (5) ________ or
warehoused until it is needed. The seller of real estate can (6)________ the property by
preparing it for building or constructing or renovating improvements. The seller also can
use (7)_________ and other promotional tools to make the property’s availability known
to the greatest number of potential buyers. The one thing the seller of real estate cannot do
is (8)________ the property’s location. What the seller can do is make the property more
desirable by analyzing the (9)________ and desires of potential buyers and improving the
property with those requirements in mind.
2.2 Match 1-5 to a-e to make sentences

1. An analysis of the real estate marketplace a. it becomes a site


must include

2. A fixture is anything b. what economists call an imperfect


market

3. When land is improved by the addition of c. demographic data on the area’s


utilities (water, gas, electricity) or other residents
services (such as sewers),

4. The property market is d. the total supply of land is to all


intents and purposes fixed

5. Another feature of the property market is e. permanently attached to land.


that
2.3 Look for the right answer
1. An analysis of the real estate marketplace must include……………..on the area’s
residents.

a. demographic data b. economy data c. demography

2. By knowing as much as possible about the people who make up the market area, it is
possible to predict the probable…………….for various types and price level of housing as
well as the commercial and industrial establishments necessary to…………..the required
products and services.

a. supply, supply b. supply, demand c. demand, supply

3. The overall market area can be further defined by the process called……………into
specific categories of consumer preferences, including those relating to income, work,
leisure activities, and other lifestyle patterns.

a. classify b. classification c. segmentation

4. When real estate is used as security, the debtor usually retains…………….

a. pledge right b. possession c. trading right

You might also like