Chapter 1

The Market for Real Estate Knowledge

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.

Real Estate - land and things attached to it

property rights restrictions on property rights

(public and private) deeds leases contracts title transfer issues

Legal analysis concepts include:

real estate market dynamics real estate space market real estate asset market real estate development

industry urban growth models

Market analysis concepts include:

real estate brokerage real estate appraisal property management

Real estate service industry concepts include:

financing methods time value of money concepts mortgage mechanics investment property analysis development project analysis

Financial and investment analysis concepts include:

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

Figure 1.1

Industry Trends and Statistics

Figure 1.2 on page 7 shows number of individuals employed in the real estate industry from 1972 though 2001

Table 1.1 on page 8 shows typical earnings for brokers, salespersons, appraisers, title examiners, and property managers in 1998 and 1999.

Figure 1.2

Table 1.1

End of Chapter 1