Chapter 1 Review Questions

 

1)      Real estate and real property are commonly both used to mean both space and rights; but technically, rights are the real property and the space is the real estate.

a.       True

b.      False

2)      Lack of information about what buyers are willing to pay for property is a source of inefficiency in the real estate market.

a.       True

b.      False

3)      The real estate process may or may not involve construction.

a.       True

b.      False

4)      A commercial bank is a financial institution that specializes on the needs of businesses by focusing on long-term loans.

a.       True

b.      False

5)      Successor entrepreneurs can only be large, sophisticated real estate funds.

a.       True

b.      False

6)      Some of the reasons that real estate markets are inefficient are the following:

a.       Homogenous products

b.      Critical mass of market participants

c.       Large amounts of data

d.      All of the above

e.      None of the above

7)      A real estate professional who maintains and creates value to a property by maximizing its attractiveness and keeping it leased up is     a(n) _________.

a.       Property manager

b.      Acquisition expert

c.       Asset manager

d.      Broker

8)      A real estate professional working for a government authority who estimates the value of property for tax purposes is a(n) _________.

a.       Appraiser

b.      Tax assessor

c.       Leasing agent

d.      Consultant

 

 

        Answers: 1)F   2)T   3)T   4)F   5)F   6)E   7)C   8)B

sean suon chapter one: Real Estates Analysis: Environments and Activities review question

1.)    A generic term for a real estate asset created by real estate lender.

a.)    Mortgage

b.)    Lender

c.)     Leasing agency

2.)    A real estate professional who facilitates the sales of real estates assets by bringing together buyers and sellers.

a.)    Appraiser

b.)    Property manager

c.)     Asset manager

d.)    Broker

3.)    An asset whose value is derived from the value of underlying assets that back it.

a.)    Developer

b.)    Derivative

c.)     Originator

d.)    Proprietary transaction

4.)    Securitizer is a security expert who takes pooled real estates assets and creates derivatives securities from them.    

a.)    True

b.)    False

5.)    Property manager is a real estates professional who specializes in assessing the risk associated with real estates loans.

a.)    True

b.)    False

6.)    Real estates investment is the process of converting the rights to receive income from real estates assets into derivatives securities.

a.)    True

b.)    False

7.)    Lender is a specialist within a lending institution who finds real estates borrowers and facilitates their borrowing funds thereby creating mortgage assets.

a.)    True

b.)    False

8.)    Efficiency is a term to describe how quickly transaction prices within a market reflect relevant market information.

a.)    True

b.)    False

 

 

1)a 2)d 3)b 4)a 5)b underwriter 6)b securitization 7)b originator 8)a

Jordan Naffa: Chapter 1: Real Estate Analysis: Environments & Activities, Question and Answer.

Jordan Naffa: Chapter 1: Real Estate Analysis: Environments & Activities, Question and Answer.

Multiple Choice Questions:

1.) Real estate markets are inefficient due to the following except: 

a. Data poverty

b. Sequential bidding

c. Localized Markets

d. Governmental involvement

2.) A commercial bank is:

a. A financial institution that specializes in meeting the banking and financial need of business.

b. Creates a mortgage by lending money to real estate borrowers.

c. An intermediary who specializes in bringing real estate borrowers together with real estate lenders.

d. A financial institution specializing in the banking and financial needs of households.

3.) A property manager is:

a. Real estate professional who maintains and creates value by maximizing the attractiveness of properties and keeping them leased up.

b. Real estate professional who locates real estate assets and negotiates terms for their purchase to place them into an investment portfolio.

c. Real estate professional who manages the day-to-day operations of real estate assets.

           

True / False:

1.) Real estate and real property are terms that can be used synonymously.

True / False

2.) Traditionally, entrepreneurs are motivated to create a product when they perceive unmet demand.

True / False

3.) The term ‘localized market’ is a term that mean geographically common real estate.

True / False

4.) An appraiser is a real estate professional specializing in providing an informed and defensible opinion of estate asset value.

True / False

5.) Efficiency is a term to describe how slowly transaction prices within a market reflect relevant market information.

True / False

Answers:

Multiple Choice:

1.) d

2.) a

3.) c

True /False:

1.) False

2.) True

3.) False

4.) True

5.) False 

Chapter 1 An Introduction to Environments and Activities in Real Estate

 Questions and Answers.

1)      A Term for a real estate market that tends to be geographically unique, which contributes to its inefficiency.
A.      Stratified product type
B.      Sequential bidding
C.      Proprietary transactions
D.      Localized markets


2)      What can be classified under the category of Efficient?
A.      Stock
B.      Fine Art
C.      Commercial
D.      Pyramid

3)      Is real estate Efficient or Inefficient?
A.      Efficiency
B.      Inefficient
C.      Yes
D.      Neither

  
T/F Question:
4)      Is Government a major consumer of space, like corporations?
·         T
·         F

5)      Life insurance companies specialize in long-term mortgages (called Permanent mortgages)
·         T
·         F

6)      Entrepreneurial Activity involves the exchanging of Capital, space and time.
·         T
·         F
7)       "Lender" is a term for a financial institution specializing in the banking and financial needs of households, which typically makes long-term, permanent home loans.
·         T
·         F
8)      Is a real estate professional who specialized in assessing the risk associated with the real estate loans called a "Servicer"?
·         T
·         F

 1D, 2A, 3D, 4T, 5T, 6T, 7F, 8F

                                                    

Houa Vang Chapter 1 An Introduction to Environments and Activities in Real Estate

Chapter 1 questions and answers
 2. Efficiency is how quickly transaction prices within a market reflect relevant market information. (T/F)

1. Real property is the legally recognized right associated with the ownership of real estate. (T/F)

3. Which real estate market characteristic involve in selling property in the market by waiting for better offer.
a) Stratified product types
b) Sequential bidding
c) No critical mass of market participant
c) Proprietary transactions

4.Various lender operate in real estate goes through commercial banks. (T/F)

5. Broker is a real estate professional who facilitates the sale of real estate asset by bringing togather only sellers. (T/F)

6. A real estate professional who maintain and creates value by maximizing the attractiveness of properties and by keeping them leased up.
a) Asset Manager
b) Acquisition expert
c) Property manager
d) Broker

7. Listing a real estate on the market and waiting for a better offer is called a sequential bidding.
(T/F)

8. Maintaining loan by collecting and posting payment.
a) under writer
b) servicers
c) lender
d) asset manager

answers: 1) T, 2) T, 3) b, 4) T, 5) F, 6) a, 7) F 8) b