1i. The term real estate can be used in three fundamental ways. List these three alternative uses or definitions.
1ii.A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a:
2i. The United States represents about 6 percent of the earth’s land surface, or approximately 2.3 billion acres. Who owns this land? What is the distribution of this land among the various uses (e.g., developed land, federal land, for estland)?
2ii. The market in which required rates of return on available investment opportunities are determined is referred to as the:
3i. Describe the value of U.S. real estate by comparing it to the values of other asset classes (e.g., stocks, bonds).
3ii.The actions of local, state, and federal governments affect real estate values:
a.Primarily through user markets.
b.Primarily through the capital market.
c.Primarily through their taxation policies.
d.All of the above.
4i. How much of the wealth of a typical U.S. household is tied up in real estate? How does this compare to the role that assets and investments play in the portfolios of U.S. households?
4ii.What portion of households own their house?
5i. Real estate assets and markets are unique when compared to other assets or markets. Discuss the primary ways that real estate markets are different from the markets for other assets that trade in well-developed public markets.
5ii. Of the following asset categories, which has the greatest aggregate market value?
d.Non-government real estate.
6i. Explain the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets?
6ii. Storm water drainage systems are best described as:
b.Improvements to the land.
d.Improvements on the land.
7i. Identify and describe the interaction of the three economic sectors that affect real estate value.
7ii. What is the single largest asset category in the portfolio of a typical U.S. household?
8i. Real estate construction is a volatile process determined by the interaction of the user and capital markets. What signals do real estate producers use to manage this process? What other factors affect the volatility of real estate production?
8ii. Real estate markets differ from other asset classes by having all of the following characteristics except:
b.High transaction costs.
9.Which of the following is not important to the location of commercial properties?
a.Access to customers.
c.Access to schools.
d.Availability of communications infrastructure.
10.Which of the following attributes of a home are the most difficult to observe and value?