Colibri Real Estate Chapter 1 Exam Questions and Complete Solution

Colibri Real Estate Chapter 1 Exam Questions and Complete Solutions The regulation of money through the Federal Reserve Board. - Answer: Economic, government The property's exact position in a neighborhood, city, and region. - Answer: Physical The buyer's tastes and standards based on lifestyle. - Answer: Social The main industry of an area - Answer: Economic General trends of buyers toward one city or area over another. - Answer: Social The Fed's plan for spending and debt management. - Answer: Economic The relative supply of available houses. - Answer: Economic, social Tax breaks and other tax policies - Answer: Government Trends such as single-parent households or empty nest households - Answer: Social The topography of the area. - Answer: Physical The presence of or lack of water. - Answer: Physical The current interest rate - Answer: Economic, government The availability of schools in the area - Answer: Social The opening of a new corporate headquarters - Answer: Economic Empty nesters looking to downsize - Answer: Social In general, a real estate licensee may NOT accept compensation for selling _________ on behalf of a client. - Answer: Securities The majority of new licensees begin their work in what market? - Answer: Single-family residential An independent contractor licensee - Answer: Earns commission based on the results of his or her work efforts. Which is NOT one of the factors used by the IRS to determine whether a real estate agent qualifies as a statutory non-employee? - Answer: Has a fiduciary relationship with clients At the end of the year, what form will an independent contractor receive that details his or her compensation for the year? - Answer: 1099-MISC An employer is responsible for withholding each of these from an employee's paycheck EXCEPT - Answer: Property tax Salesperson L uses the multiple listing service to find the perfect house for buyer B. When B buys the house, who will give L a check for the commission he earned? - Answer: L's broker Which is NOT an advantage of a career in real estate sales? - Answer: Predictable income When may a person use the term REALTOR? - Answer: Only after becoming a member of the National Association of REALTORS The multiple listing service (MLS) was created so that - Answer: Member brokers could share listings with a blanket offer of cooperation and compensation ABC Cable Inc. is getting ready to build a new call center in Smithton that should attract hundreds of new workers to the small town. What would you expect the immediate effect on home prices in the area to be? - Answer: Home prices should rise initially A large influx of people into a community is likely to result in which type of real estate market? - Answer: Seller's market What is the most important factor in determining supply in the real estate market? - Answer: Economic base of an area What is the impact of low inflation on the real estate market? - Answer: It decreases the cost of a newly built home What factor is NOT LIKELY to contribute to a buyer's market? - Answer: Limited new construction Which situation would NOT LIKELY result in a seller's market? - Answer: Migration out of an area What is the acronym you can use to remember the board factors that impact the real estate market? - Answer: P-E-G-S What is another word that refers to the non-homogeneity of real property? - Answer: Uniqueness An increase in the cost of goods or services is known as - Answer: Inflation Which is NOT a physical characteristic of land? - Answer: Balance