Chapter 1The Market for Real Estate Knowledge

The real estate body of knowledge consists of four broad collections of concepts:

Legal analysis conceptsMarket analysis conceptsReal estate service industry conceptsFinancial and investment analysis concepts

Introduction to Real Estate Decision MakingAn understanding of the dynamics of real

estate leads to sound decision making. The objectives of this chapter are to convey the importance of real estate in the nation’s economy, to examine the characteristics of real estate that differentiate it from other investments, and to introduce the variety of careers available in in the real estate industry.

Role of real estate studies in business education:Personal and business-related decisionsOrganization of the book

Special Characteristics of Real Estate:Fixed locationUniqueness or heterogenietyInterdependence of land useLong lifeLong-term commitmentLarge transactionsLong gestation period

Economic Importance of Real Estate:Land and structures make up two-thirds of the

nation’s wealth.

Real Estate Industry: Careers in the Private Sector:Real Estate Brokerage

National Association of REALTORSBrokerage Specialties

Owner occupied residential Renter-occupied residential Commercial Industrial

Farm and other open land Property management

(Careers in the Private Sector con’t)Real estate financeReal estate appraisalCounseling Development and constructionAsset managementLand-use planning

Real Estate Industry: Careers in the Public SectorAcquisition of propertyReal property taxationLand-use planningLand use and housing policy