ACEABLE AGENT PRINCIPLES OF REAL
ESTATE ACTUAL TEST QUESTIONS WITH
COMPLETE ANSWER KEY
●● Arrears
Answer: Payment for an item or service after it's received
●● Down Payment
Answer: The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller
●● Proration
Answer: The allocation or distribution of an annual expense across
smaller chunks of time
●● Acreage
Answer: A unit of measurement used to determine the size of land; 1
acre = 43560 square feet
●● Appraisal
Answer: The value of property, based on factors determined by a
certified appraiser
,●● General data
Answer: Information about the area surrounding a property, this could
include the city, region, and neighborhood in which the property is
situated
●● Specific Data
Answer: Information regarding the property itself
●● Limited Appraisal
Answer: A simple, abbreviated version of a regular appraisal
●● Market Value
Answer: The price for which a property would sell if offered openly
under normal conditions. This refers to the economic principle, it's the
price that a buyer and seller would probably accept
●● Appraised Value
Answer: Refers to the value given by a licensed appraiser during the
mortgage origination process. Appraisers are chosen by the lender but
paid for by the homebuyer.
●● Assessed Value
Answer: Refers to the value placed on a property by a governmental unit
for use in levying annual real estate taxes
,●● Loan-to-Value Ratio (LTV)
Answer: The limit on the value of a loan, usually a certain percentage of
the home's appraised value or sales price, whichever is lower
●● Subject Property
Answer: The property that is being evaluated in any given appraisal
●● Highest and Best Use
Answer: What is achieved when a property is used for the most
appropriate purpose with the highest returns
●● Principle of Anticipation
Answer: The present value of a property is affected by the anticipated
income or utility that property will give to the property owner
●● Principle of Contribution
Answer: A property's overall value is made of the combined value of
each of its parts
●● Principle of Substitution
Answer: The value of something is effected by the cost of getting a
similar (substitute) item elsewhere
, ●● Principle of Change
Answer: The condition of a property, the desirability of its location, and
the market in which it exists can always change
●● Principle of Conformity
Answer: Values are the highest when houses in a neighborhood look
roughly the same
●● Principle of Regression
Answer: Lower value properties surrounding a subject property are can
drag down the value of a property
●● Principle of Progression
Answer: Higher value properties of a subject property can bump of the
value of a property
●● Sales Comparison Approach
Answer: Determining value by comparing the subject property to similar
properties ("comps") that have sold recently. It's most commonly used
for single family residences.
●● Cost Approach
ESTATE ACTUAL TEST QUESTIONS WITH
COMPLETE ANSWER KEY
●● Arrears
Answer: Payment for an item or service after it's received
●● Down Payment
Answer: The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller
●● Proration
Answer: The allocation or distribution of an annual expense across
smaller chunks of time
●● Acreage
Answer: A unit of measurement used to determine the size of land; 1
acre = 43560 square feet
●● Appraisal
Answer: The value of property, based on factors determined by a
certified appraiser
,●● General data
Answer: Information about the area surrounding a property, this could
include the city, region, and neighborhood in which the property is
situated
●● Specific Data
Answer: Information regarding the property itself
●● Limited Appraisal
Answer: A simple, abbreviated version of a regular appraisal
●● Market Value
Answer: The price for which a property would sell if offered openly
under normal conditions. This refers to the economic principle, it's the
price that a buyer and seller would probably accept
●● Appraised Value
Answer: Refers to the value given by a licensed appraiser during the
mortgage origination process. Appraisers are chosen by the lender but
paid for by the homebuyer.
●● Assessed Value
Answer: Refers to the value placed on a property by a governmental unit
for use in levying annual real estate taxes
,●● Loan-to-Value Ratio (LTV)
Answer: The limit on the value of a loan, usually a certain percentage of
the home's appraised value or sales price, whichever is lower
●● Subject Property
Answer: The property that is being evaluated in any given appraisal
●● Highest and Best Use
Answer: What is achieved when a property is used for the most
appropriate purpose with the highest returns
●● Principle of Anticipation
Answer: The present value of a property is affected by the anticipated
income or utility that property will give to the property owner
●● Principle of Contribution
Answer: A property's overall value is made of the combined value of
each of its parts
●● Principle of Substitution
Answer: The value of something is effected by the cost of getting a
similar (substitute) item elsewhere
, ●● Principle of Change
Answer: The condition of a property, the desirability of its location, and
the market in which it exists can always change
●● Principle of Conformity
Answer: Values are the highest when houses in a neighborhood look
roughly the same
●● Principle of Regression
Answer: Lower value properties surrounding a subject property are can
drag down the value of a property
●● Principle of Progression
Answer: Higher value properties of a subject property can bump of the
value of a property
●● Sales Comparison Approach
Answer: Determining value by comparing the subject property to similar
properties ("comps") that have sold recently. It's most commonly used
for single family residences.
●● Cost Approach
