Transcript The Market for Real Estate Knowledge

Ch. 1 Why Study Real Estate?
Chapter 1: Outline
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Introduction
Definition of Real Estate
& Special Characteristics of Real Estate
The Market for Real Estate Knowledge
Industry Trends and Statistics
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Chapter 1:
Why Study Real Estate?
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Definition of Real Estate:
Real Estate can be defined as:
“Land and things attached to it”.
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Special Characteristics
-
fixed location
uniqueness
interdependence of land use
long life
long-term commitments
large transactions
long gestation period
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The Market for Real Estate
Knowledge
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What is real estate body of knowledge?
- legal analysis concepts
- real estate service industry concepts
- market analysis concepts
- financial and investment analysis concepts
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What is a market?
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Where does supply and demand come from?
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How does supply and demand interact?
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Principle of supply and demand can be applied to the market
for real estate knowledge
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Industry Trends and Statistics:
The importance of Real Estate
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Single largest component of wealth in US
Real Estate accounts for 5% of US GDP
Creates Jobs for over 9 million Americans
It is source of over 70% of local government
revenues
* as of 2002
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Industry Trends and Statistics:
Home Values
source: Standardandpoors.com
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Industry Trends and Statistics:
Foreclosures Started By Loan Type (NSA)
Industry Trends and Statistics:
4th Quarter 2008 Foreclosures by State
source: CNN.com, April 9, 2009: http://money.cnn.com/news/storysupplement/economy/gapmap/index.htm
Industry Trends and Statistics:
US Home Ownership Rate
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Industry Trends and Statistics:
Housing Starts
Industry Trends and Statistics:
The Cost of Borrowing
30 Year fixed mortgage rates
(1970-2010)
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Industry Trends and Statistics:
Employment
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Number of individuals employed in the
real estate industry from 1972 though
2001
Source: www.bls.gov 12
Industry Trends and Statistics:
US Mean Annual Wages by Real Estate Occupation
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1998
All Occupations
Appraisers
(13-2021)
Property
Managers
(11-9141)
Real Estate
Brokers
(41-9021)
Real Estate
Salespersons
(41-9022)
N/A
Average Annual Wages for Real Estate
Occupations (www.bls.gov)
1999
N/A
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$32,990 $34,020 $35,560 $36,210 $37,440 $37,870 $39,190 $40,690 $42,270 $43,460 $44,410
$44,340 $41,670
$41,700 $42,420 $46,120 $49,900 $50,280 $49,830 $51,110 $52,290 $53,410 $53,520 $54,230
$35,960 $40,940
$43,130 $44,080 $46,390 $47,550 $50,350 $50,570 $52,290 $53,530 $56,250 $58,660 $62,400
$54,220 $62,190
$60,080 $65,410 $72,130 $69,920 $75,330 $76,930 $80,230 $79,800 $77,240 $78,360 $76,060
$37,270 $36,990
$37,950 $38,430 $42,470 $44,950 $50,440 $52,090 $54,350 $55,090 $54,410 $53,100 $52,490
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Ch. 2 Real Estate Law
– Legal Descriptions
Ch 2. Outline
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1. Metes and Bounds Method
2. Rectangular Survey System
3. References to Recorded Plats
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1. Metes and Bounds Method
Metes = Distance: measured in feet
Bounds = Direction of boundary:
measured in angles
(degree, minutes, and seconds)
The circle: 360 degrees
4 quadrants: NE, SE, SW, NW
1 quadrant = 90 degrees
1 degree = 60 minutes
1 minute = 60 seconds
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Metes and Bounds Method
Measuring the Direction:
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Metes and Bounds Method
N
150 feet
W
Example:
30° 15’ 10”
S
300 feet
Travieso Street
Beginning at an iron pin
on the northern side of
Cambero Street, 20 feet
due east of the northeastern corner of the
intersection of Cambero
and Travieso Street,
as measured along the
north side of Cambero
Street, running thence
E
20 feet
Cambero Street
to an iron pin, running
thence due
to an iron pin, running thence
to an iron pin, running thence
to the point of
beginning.
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2. Rectangular Survey System
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Rectangular Survey System
 Land is divided into:
(N-S) &
(E-W)
 Strips 6 miles wide to west and east of principal
meridians are formed by range lines.
 Strips 6 miles wide to north and south of base lines
are formed by township lines.
 Range and township lines form a township,
6 x 6 miles = 36 square miles
 Each township is divided into 36 sections, 1 square
mile = 640 acres. (Note: 1 mile = 5,280 feet)
 Each section is divided into quarters, each quarter is
subdivided into quarters.
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Rectangular Survey System
Each township has 36
sections
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Rectangular Survey System
Example: The parcel is in the
southwest quarter of the
southeast quarter of Section
14 in Township 43 South,
Range 34 East of the
Tallahassee Principal Meridian.
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3. References to Recorded Plats
Plats: Engineer drawing of parcels of real
estate.
They are recorded as part of public records.
A parcel is referred to as a “lot” within a
“block” of a subdivision, for example : “Lot
4 of Block G”.
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