Introduction to the Real Estate Business

1
Introduction to the Real Estate Business
2
What are some career possibilities in real estate?

• Brokerage
• Broker or Salesperson
• Appraisal
• Property Management
• Financing
• Development
• Home Inspection
• Counseling / Consulting
• Education

3
What are the major trade organizations?

• National Association of Realtors
• Appraisal Institute
• American Society of Home Inspectors
• CCIM Institute (Certified Commercial Institute
  Member)
• Institute of Real Estate Management
• Many Others

4
Types of Real Property

• Residential
• Commercial
• Industrial
• Agricultural
• Special Purpose
• Each of these can be divided into the sales v.
  the rental (leasing) market.

5
The Real Estate Market

• Driven by supply and demand
• Uniqueness and immobility are the two
  characteristics of real estate that have the most
  impact on demand.
• Other factors affecting demand
• population
• demographics
• employment and wage levels
• consumer confidence and emotions

6
What factors affect supply the most?

• labor and material costs
• selling prices
• transfer costs
• development and transfer costs and difficulty

7
How can government affect supply and demand?

• Effect on interest rates
• Zoning
• Development regulation
• Growth restrictions
• Environmental regulations
• Fiscal policy
• Regulation
• Fannie Mae and Ginnie Mae

8
Assignment

• Real the two articles available from the class
  website.