Principles of Real Estate 2 Exam With 100% Correct Answers 2024

Principles of Real Estate 2 Exam With 100% Correct Answers 2024 What helps overcome the difficulties of objectively estimating the value of properties? - answerAppraisals The approach used as the best indicator of value for existing properties - answerSales Comparison Refers to the loss in desirability of the style, layout, or function of an element of a property over time - answerFunctional obsolescence The price a willing seller will sell for, and the price a willing buyer will pay - answerMarket Value The legal use for property that gives the greatest return in money and/or amenities - answerHighest and best use The loss in value of a property caused by factors outside of the property itself - answerExternal Obsolescence Percentage of value or sales price that a lender is willing to finance - answerLoan-to-value ratio If the loan limits the loan-to-value ratio to a maximum of 90% and the appraised value of the home is $100,000, what is the maximum loan amount permitted under the program? - answer$90,000 What is a good acronym to remember characteristics of property value? - answerDUST What are the four characteristics of property value? - answerDemand, Utility, Scarcity, Transferability T/F Price does not equal value. - answerTrue What are the 3 approaches to value? - answerSales Comparison Approach, Cost Approach, Income Approach Sales Comparison Approach is also known as - answerMarket Data Approach Reduction in the value of a property due to deterioration or obsolecence - answerDepreciation What types of depreciation are there? - answerPhysical Depreciation, Functional Obsolescence, External Obsolescence Loss in a property's value due to daily wear and tear - answerPhysical Deterioration Loss in the desirability of style, layout or function of an element of a property over time - answerFunctional Obsolecence A residential heating system featuring steam radiators may adequately warm the rooms, but buyers today prefer heating methods that are less obvious and take up less space, is an example of what? - answerFunctional Obsolescence The process of making a lending decision - answerUnderwriting The process of creating a new mortgage loan - answerOrigination The practice of refusing to provide financing in a particular location - answerRedlining The market in which borrowers and lenders come together to create and negotiate the terms of a mortgage transaction - answerPrimary mortgage market The legal procedure under which property may be sold to satisfy an unpaid promissory note - answerForeclosure An appraiser's opinion of value - answerAppraisal Standard that have been established by the Appraisal Standards Board of the Appraisal Foundation - answerUSPAP