1 Exampromax - Stuvia US 2025/2026
AceableAgent Real Estate Principals 2
Questions and Answers (100% Correct
Answers) Already Graded A+
General Data
Ans: Is information about a property's location. This could include the city,
region, and neighborhood in which the poperty uis situated.
Specific Data
Ans: Is information regarding the property itself.
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Principle if Anticipation
Exampromax - Stuvia US
Ans: The idea that the present value of a property is affected by the
ANTICIPATED income or utility that property will give its property owner.
Principle of Contribution
Ans: The idea that a property's overall value is made up of the combined value of
each of its parts. But the CONTRIBUTORY value of an item is not always equal
to the price of that item.
Principle of Substitution
Ans: States that the value of something is affected by the cost of getting a similar
(substitute) item elsewhere.
Principle of Change
Ans: Reminds us that the the condition of a property, the desirability of its
location, and the market in which it exists can always change, which could affect
the value of the property.
Principles of Supply and Demand
Ans: States that when supply is low and demand is high, prices will increase. And
if supply is plentiful and demand is low? Prices will then drop.
Principle of Conformity
, 2 Exampromax - Stuvia US 2025/2026
Ans: Claims that maximum value is realized when land use is in harmony with
surrounding standards.
Principles of Regression and Progression
Ans: States that the presence of higher value or lower homes near the subject
property can change its value.
DUST
Ans: Is a acronym to help us remember the four characteristics that make real
estate valuable: Demand, Utility, Scarcity and Transferability.
Demand
Ans: If there are multiple buyers interested in a property, the property with
© 2025 Assignment Expert
increase in value.
Exampromax - Stuvia US
Utility
Ans: Properties need to be useful or serve some kind of purpose in order to have
value to a buyer. An empty lot, for example, may not look like it has much utility,
but to a buyer who wants to build a custom home in that area, it's quite useful.
Scarcity
Ans: If the amount of housing in an area is low in supply, it grows in value.
Transferability
Ans: Whether it's government rules or a title issue, anything that limits the
transferability of real estate makes it less valuable.
Appraisal Report
Ans: A REPORT from a licensed appraiser that's sums up a property's market
value based on collected data. The lender usually asks for this during the
mortgage origination process.*
The Buyer
Ans: The appraisal report is usually paid by...
The Lender
, 3 Exampromax - Stuvia US 2025/2026
Ans: The appraiser that will complete the appraisal report is usually chosen by...
*After a buyers offer is accepted and the LENDER is trying to give the buyer final
approval.
Appraisal Review
Ans: To double-check the accuracy of the appraisal. Conducted by another
professional (either an independent or in-house specialist).
Market Value
Ans: Is the price for which a property will sell if offered openly under normal
conditions. (All about the present)
Depreciation
© 2025 Assignment Expert
Ans: The lose of value because of obsolescence (becoming obsolete) or
deterioration.
Exampromax - Stuvia US
Effective Age
Ans: An estimated age that is influenced by the updates and quality of
maintenance of the property.
Comparative Market Analysis (CMA)
Ans: Uses information regarding recently sold homes in the area to arrive at an
indication of what the fair market value of a similar property would be.
Sales Comparison Approach (or Direct Sales Comparison)
Ans: An appraiser collects data from the previous sales of similar properties in the
area with similar features: amenities, square footage, number of rooms, and
location.
*Also known as Market Data Approach.
*An appraiser gathers at least three comparison sales, or comparables.
*Used mostly for owner-occupied residential property and vacant land.
Cost Approach
Ans: An appraiser needs to estimate the current costs of reconstructing the
property with improvements (the replacement cost). This estimate is added to the
value of the land, and then depreciation of the home since it was first built is
subtracted.
*Used mostly for new construction.
AceableAgent Real Estate Principals 2
Questions and Answers (100% Correct
Answers) Already Graded A+
General Data
Ans: Is information about a property's location. This could include the city,
region, and neighborhood in which the poperty uis situated.
Specific Data
Ans: Is information regarding the property itself.
© 2025 Assignment Expert
Principle if Anticipation
Exampromax - Stuvia US
Ans: The idea that the present value of a property is affected by the
ANTICIPATED income or utility that property will give its property owner.
Principle of Contribution
Ans: The idea that a property's overall value is made up of the combined value of
each of its parts. But the CONTRIBUTORY value of an item is not always equal
to the price of that item.
Principle of Substitution
Ans: States that the value of something is affected by the cost of getting a similar
(substitute) item elsewhere.
Principle of Change
Ans: Reminds us that the the condition of a property, the desirability of its
location, and the market in which it exists can always change, which could affect
the value of the property.
Principles of Supply and Demand
Ans: States that when supply is low and demand is high, prices will increase. And
if supply is plentiful and demand is low? Prices will then drop.
Principle of Conformity
, 2 Exampromax - Stuvia US 2025/2026
Ans: Claims that maximum value is realized when land use is in harmony with
surrounding standards.
Principles of Regression and Progression
Ans: States that the presence of higher value or lower homes near the subject
property can change its value.
DUST
Ans: Is a acronym to help us remember the four characteristics that make real
estate valuable: Demand, Utility, Scarcity and Transferability.
Demand
Ans: If there are multiple buyers interested in a property, the property with
© 2025 Assignment Expert
increase in value.
Exampromax - Stuvia US
Utility
Ans: Properties need to be useful or serve some kind of purpose in order to have
value to a buyer. An empty lot, for example, may not look like it has much utility,
but to a buyer who wants to build a custom home in that area, it's quite useful.
Scarcity
Ans: If the amount of housing in an area is low in supply, it grows in value.
Transferability
Ans: Whether it's government rules or a title issue, anything that limits the
transferability of real estate makes it less valuable.
Appraisal Report
Ans: A REPORT from a licensed appraiser that's sums up a property's market
value based on collected data. The lender usually asks for this during the
mortgage origination process.*
The Buyer
Ans: The appraisal report is usually paid by...
The Lender
, 3 Exampromax - Stuvia US 2025/2026
Ans: The appraiser that will complete the appraisal report is usually chosen by...
*After a buyers offer is accepted and the LENDER is trying to give the buyer final
approval.
Appraisal Review
Ans: To double-check the accuracy of the appraisal. Conducted by another
professional (either an independent or in-house specialist).
Market Value
Ans: Is the price for which a property will sell if offered openly under normal
conditions. (All about the present)
Depreciation
© 2025 Assignment Expert
Ans: The lose of value because of obsolescence (becoming obsolete) or
deterioration.
Exampromax - Stuvia US
Effective Age
Ans: An estimated age that is influenced by the updates and quality of
maintenance of the property.
Comparative Market Analysis (CMA)
Ans: Uses information regarding recently sold homes in the area to arrive at an
indication of what the fair market value of a similar property would be.
Sales Comparison Approach (or Direct Sales Comparison)
Ans: An appraiser collects data from the previous sales of similar properties in the
area with similar features: amenities, square footage, number of rooms, and
location.
*Also known as Market Data Approach.
*An appraiser gathers at least three comparison sales, or comparables.
*Used mostly for owner-occupied residential property and vacant land.
Cost Approach
Ans: An appraiser needs to estimate the current costs of reconstructing the
property with improvements (the replacement cost). This estimate is added to the
value of the land, and then depreciation of the home since it was first built is
subtracted.
*Used mostly for new construction.
