1. The Market for Real Estate Knowledge Chapter 1

2. Real Estate - Physical Land and Attached Structures What is Real Estate?

3. Fixed location Uniqueness of each parcel –Topography and External Factors (Beach) Interdependence of land uses –Residential and Retail Long life & Long-term commitments Large transactions Long gestation (development) period What are the Attributes of Real Estate?

4. The real estate body of knowledge consists of four broad collections of concepts: –legal analysis concepts –market analysis concepts –real estate service industry concepts –financial and investment analysis concepts. The Real Estate Body of Knowledge

5. Property rights –Real Property - Legal Interest in land and structures attached to the land Restrictions on property rights (public and private) Deeds and legal descriptions Leases Contracts Title transfer issues Legal analysis concepts

6. Real estate market dynamics –real estate space market How many units to build? –real estate asset market What is the return on investment? –real estate development industry The Real Estate Entrepreneur Urban growth models Market analysis concepts

7. Real estate brokerage –Single family –Commercial/Industrial –Farms and Land Real estate appraisal –mortgage, tax, ROW, estates Property management –Value Added –Asset management (restaurants, discount) Real estate service industry concepts

8. Other Private Sector Jobs –Development/construction (corp., spec/fee) –Real estate finance (bankers v. brokers) –Consulting (land use and zoning, investment) –Investment Analysis & Portfolio Management Real estate service industry concepts

9. Public Sector Jobs –Public Housing Administration –Property Tax (Ad Valorem) –ROW (highway and utility) –Land Use Planning (City Planners/ Zoning) Real estate service industry concepts

10. financing methods (Debt vs. Equity) time value of money concepts –Six functions of a dollar / NPV & IRR mortgage mechanics –Fixed vs. Variable Rate Mortgages investment property analysis development project or market analysis Financial and investment analysis concepts

11. Market Model for Real Estate What is a market? (A place of Exchange) What is demand? (The Amount Desired) What is supply? (The Amount Available) Where do supply and demand come from? –Human Needs and Wants –How to provide for these needs and wants with limited resources. (The central question in RE economics) How do supply and demand interact? –Supply is Upward Sloping / Demand is Downward –Equilibrium

12. Market Model for Real Estate Knowledge Principle of supply and demand applied to the market for real estate knowledge –Due to the increasing complexity of Real Estate Markets greater levels of specialized knowledge are necessary –So What? –For those willing to study, more high paying jobs should be available in the Real Estate field in coming years