Principles of real estate II (Champions) Exam with complete solutions

Functional obsolescence - correct answer-Refers to the loss in desirability of the style, layout or function of an element of a property over time Sales comparison - correct answer-best indicator of value for existing properties highest and best use - correct answer-the legal use for property that gives the greatest return in money and/or amenities external obsolescence - correct answer-the loss in value of a property caused by factors outside the property itself principle of contribution - correct answer-suggests the value of a property is equal to the sum of the contributory value of each of its components. most important aspect is that cost does not equal value most important aspect of principle of contribution - correct answer-cost does not equal value (for example...swimming pool) principle of change - correct answer-forces acting on a parcel of land are always affecting the value of the land principle of anticipation - correct answer-the purchase price is affected by the expectation of future appeal and benefits