The Market for Real Estate Knowledge

1
Chapter 1

• The Market for Real Estate Knowledge

2
Real Estate - Land and Things Attached to It

• 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.

3
Legal Analysis Concepts Include

• Property rights
• Restrictions on property rights (public and
  private)
• Deeds
• Leases
• Contracts
• Title transfer issues

4
Market Analysis Concepts Include

• Real estate market dynamics
• Real estate space market
• Real estate asset market
• Real estate development industry
• Urban land use and value patterns
• Economic base theory
• Highest and best use theory
• Neighborhood life cycles
• Urban growth models
• Concentric circle model
• Axial growth model
• Sector growth model
• Multinuclei growth model

5
Real Estate Service Industry Concepts Include

• Real estate brokerage
• Real estate appraisal
• Property management

6
Financial and Investment Analysis Concepts
Include

• Financing methods
• Time value of money concepts
• Mortgage mechanics
• Investment property analysis
• Development project analysis

7
Market Model for Real Estate Knowledge

• What is a market?
• What is demand?
• What is supply?
• Where do supply and demand come from?
• How do supply and demand interact?
• Principle of supply and demand applied to the
  market for real estate knowledge

8
Figure 1.1
9
Table 1.1