Aceable Agent Principles of Real Estate 2 Questions With 100%Verified Solutions(GUARANTEED Success)

Aceable Agent Principles of Real Estate 2 Questions With 100%Verified Solutions(GUARANTEED Success) Amortization - correct answer...The repayment of a loan principle over time Arrears - correct answer...Payment for an item or service after it's received Down Payment - correct answer...The initial payment made when buying something on credit, a ____________ is paid directly by the buyer to the seller Proration - correct answer...The allocation or distribution of an annual expense across smaller chunks of time Acreage - correct answer...A unit of measurement used to determine the size of land; 1 acre = 43560 square feet Appraisal - correct answer...The value of property, based on factors determined by a certified appraiser General data - correct answer...Information about the area surrounding a property, this could include the city, region, and neighborhood in which the property is situated Specific Data - correct answer...Information regarding the property itself Limited Appraisal - correct answer...A simple, abbreviated version of a regular appraisal Market Value - correct 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 - correct 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 - correct 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) - correct 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 - correct answer...The property that is being evaluated in any given appraisal Highest and Best Use - correct answer...What is achieved when a property is used for the most appropriate purpose with the highest returns Principle of Anticipation - correct 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 - correct answer...A property's overall value is made of the combined value of each of its parts Principle of Substitution - correct answer...The value of something is effected by the cost of getting a similar (substitute) item elsewhere Principle of Change - correct answer...The condition of a property, the desirability of its location, and the market in which it exists can always change Principle of Conformity - correct answer...Values are the highest when houses in a neighborhood look roughly the same Principle of Regression - correct answer...Lower value properties surrounding a subject property are can drag down the value of a property Principle of Progression - correct answer...Higher value properties of a subject property can bump of the value of a property Sales Comparison Approach - correct 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 - correct answer...Determining value by considering how much the same property would cost to build brand new at current prices (replacement cost), then adjusting for depreciation Income Approach - correct answer...Determining value by considering how much income the property would generate when used as rental property Depreciation - correct answer...The loss of value because of obsolescence or deterioration Functional Obsolescence - correct answer...Loss of value because a property's function or appearance has gone out of style or has been replaced by a more appealing version External Obsolescence - correct answer...Loss of value caused by negative forces outside the property which are beyond the control of the owner (unfavorable changes in the environment or market) Deterioration - correct answer...Loss of value caused by physical wear and tear over time Chronological age - correct answer...The literal age of a property; a home built 30 years ago has a ________________ age of 30 Effective Age - correct answer...An estimated age that is influenced by the updates and quality of maintenance of the property; a 30 year house that has been well cared for might have an effective age of 15 Reconciliation - correct answer...When an appraiser compares estimates using different techniques (cost approach, sales approach, and/or income approach) and comes to a single number for value Appraisal Report - correct answer...a report from a licensed appraiser that sums up a property's market value based on collected data Appraisal Review - correct answer...a review of the appraisal report to make sure the appraisal meets the lender's standards Desk Review - correct answer...When a lender carries an appraisal review at the desk (as opposed to sending someone to the field) to make sure the original appraisal is accurate Field Review - correct answer...When a third party appraiser is sent back out to the property to check the validity of the first appraisal Fair Market Value - correct answer...The price for which a property will sell if offered openly under normal market conditions Subject Property - correct answer...The property that is subject of the CMA Comparative Market Analysis - correct answer...Also known as a CMA, this is a report generated by a license holder that compares prices of recently sold homes (comparables) in order to estimate the fair market value of a similar property (the "subject property") Government Sponsored Enterprises - correct answer...Publicly traded institutions that were created by Congress to provide liquidity, stability, and affordability to the mortgage market General Agricultural Mortgage Corporation - correct answer...A government-sponsored enterprise (GSE) providing a secondary market for agricultural and rural mortgage loans; also known as Farmer Mac Depository Lenders - correct answer...Institutions that make mortgage loans from funds derived from their customers' savings accounts Saving Associations - correct answer...Specialize in long-term residential loans; primary function is to promote thrift and home ownership Federal Home Loan Bank System - correct answer...eleven private, wholesale regional U.S. banks chartered to regulate member organizations, set reserve requirements establish discount rates, and provide insurance or depositors Federal Deposit Insurance Corportation - correct answer...created by Congress in 1933 to insure deposits, supervise financial institutions, make large financial institutions resolvable, and manage receiverships Commercial Banks - correct answer...designed to be sage depositories and lenders for a multitude of commercial banking activities, relying mainly on demand deposits (checking accounts) for their basic supply of funds Credit Unions - correct answer...provide members with a source of funding for personal property and, more recently, real estate mortgage loans Savings Banks - correct answer...Play an active and important role in local real estate financing activities, providing long-term mortgage loans with funds derived from customer savings accounts Life Insurance Companies - correct answer...prefer investments in large projects such as shopping centers as opposed to smaller loans for home mortages and construction loans Mortgage Bankers - correct answer...not bankers in the traditional sense, but as private entrepreneurs, their income is derived from fees received for originating and servicing real estate loans Mortgage Brokers - correct answer...bring together borrowers and lenders and earns a fee for that service Fannie Mae - correct answer...a government-sponsored enterprise created to act as a secondary mortgage market facility that could purchase, hold, and sell FHA-insured loans Freddie Mac - correct answer...a government-sponsored enterprise created in 1970 to further support the secondary mortgage market, specifically to support smaller thrift banks