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Texas Principles of Real Estate II| UPDATE
|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
Mixed Numbers - (ANSWER)A number containing both a whole number and a
fraction (examples: 1⅓; 9⅞)
Improper Fractions - (ANSWER)a fraction with its numerator equal to or greater
than its denominator
Commission Calculation - (ANSWER)Sales price X rate of commission = total
commission
Solving for the Commission Rate - (ANSWER)Commission Rate = Commission ÷
Price
Solving for the Property's Price - (ANSWER)Price = Commission ÷ Commission
Rate
Profit - (ANSWER)Profit (or Loss) = Selling price - Original cost
Profit Percentage - (ANSWER)Percentage of profit = Profit ÷ Original cost
,2
Profit Margin - (ANSWER)Profit margin = Profit ÷ Selling price
Interest - (ANSWER)the price paid for the use of borrowed money
3 types of interest calculations - (ANSWER)Simple interest, add-on interest, and
compound interest
Simple interest - (ANSWER)Interest = principal x rate x time
Add-on interest - (ANSWER)loan amount x contracted interest rate x number of
payments
Add-on interest APR - (ANSWER)APR = 2 x number of payment periods in one
year x total financing charges ÷ (principal, or amount borrowed x (number of
scheduled payments +1)
Compound interest - (ANSWER)interest which is computed on the principal
amount plus the accrued interest.
Compound Interest Formula - (ANSWER)Compound amount = Initial deposit (1 +
Interest rate)n
Points - (ANSWER)a one-time service charge to the borrower for making the loan
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Two types of points - (ANSWER)origination fee and discount points
Loan-to-Value Ratio (LTV) - (ANSWER)expresses the relationship between a
property's purchase price and its loan amount.
Loan-to-Value formula - (ANSWER)LTV ratio = (Loan amount ÷ Value)
Area of a rectangle - (ANSWER)Area = length x width
Area of a square - (ANSWER)Area = side x side
Area of a triangle - (ANSWER)Area = ½ base x height
Perimeter - (ANSWER)a lot or other shape is the sum of the length of all its sides.
Acre - (ANSWER)A measure of land equal to 43,560 square feet.
Hectare - (ANSWER)is equal to 10,000 square meters or approximately 2.47
acres.
To convert acres to hectares - (ANSWER)divide the total acres by 2.47
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Appraisal - (ANSWER)is an unbiased estimate of the nature, quality, value or
utility of an interest in or aspect of identified real estate and related personalty as
of a certain date.
Specific data - (ANSWER)This is information and details about the subject
property, as well as data (used for comparison) about comparable properties'
costs, income and expenses, sales and other relevant information
General data - (ANSWER)This is information about the property's location - its
country, region, city, and, most importantly, its neighborhood
Steps in Appraisal Process - (ANSWER)1. Define problem and scope of work
2. Collect, record, and verify the required data
3. Determine the property's highest and best use
4. Estimate the land value
5. Use ALL THREE approaches to estimate value
6. Reconcile the estimated values to determine the final value estimate
7. Communicate the final value estimate
Highest and Best Use - (ANSWER)Legally permissible
Physically possible
Financially feasible
Maximally productive
Texas Principles of Real Estate II| UPDATE
|COMPREHENSIVE MOST TESTED
QUESTIONS AND VERIFIED
SOLUTIONS|GET IT 100% ACCURATE!!
Mixed Numbers - (ANSWER)A number containing both a whole number and a
fraction (examples: 1⅓; 9⅞)
Improper Fractions - (ANSWER)a fraction with its numerator equal to or greater
than its denominator
Commission Calculation - (ANSWER)Sales price X rate of commission = total
commission
Solving for the Commission Rate - (ANSWER)Commission Rate = Commission ÷
Price
Solving for the Property's Price - (ANSWER)Price = Commission ÷ Commission
Rate
Profit - (ANSWER)Profit (or Loss) = Selling price - Original cost
Profit Percentage - (ANSWER)Percentage of profit = Profit ÷ Original cost
,2
Profit Margin - (ANSWER)Profit margin = Profit ÷ Selling price
Interest - (ANSWER)the price paid for the use of borrowed money
3 types of interest calculations - (ANSWER)Simple interest, add-on interest, and
compound interest
Simple interest - (ANSWER)Interest = principal x rate x time
Add-on interest - (ANSWER)loan amount x contracted interest rate x number of
payments
Add-on interest APR - (ANSWER)APR = 2 x number of payment periods in one
year x total financing charges ÷ (principal, or amount borrowed x (number of
scheduled payments +1)
Compound interest - (ANSWER)interest which is computed on the principal
amount plus the accrued interest.
Compound Interest Formula - (ANSWER)Compound amount = Initial deposit (1 +
Interest rate)n
Points - (ANSWER)a one-time service charge to the borrower for making the loan
,3
Two types of points - (ANSWER)origination fee and discount points
Loan-to-Value Ratio (LTV) - (ANSWER)expresses the relationship between a
property's purchase price and its loan amount.
Loan-to-Value formula - (ANSWER)LTV ratio = (Loan amount ÷ Value)
Area of a rectangle - (ANSWER)Area = length x width
Area of a square - (ANSWER)Area = side x side
Area of a triangle - (ANSWER)Area = ½ base x height
Perimeter - (ANSWER)a lot or other shape is the sum of the length of all its sides.
Acre - (ANSWER)A measure of land equal to 43,560 square feet.
Hectare - (ANSWER)is equal to 10,000 square meters or approximately 2.47
acres.
To convert acres to hectares - (ANSWER)divide the total acres by 2.47
, 4
Appraisal - (ANSWER)is an unbiased estimate of the nature, quality, value or
utility of an interest in or aspect of identified real estate and related personalty as
of a certain date.
Specific data - (ANSWER)This is information and details about the subject
property, as well as data (used for comparison) about comparable properties'
costs, income and expenses, sales and other relevant information
General data - (ANSWER)This is information about the property's location - its
country, region, city, and, most importantly, its neighborhood
Steps in Appraisal Process - (ANSWER)1. Define problem and scope of work
2. Collect, record, and verify the required data
3. Determine the property's highest and best use
4. Estimate the land value
5. Use ALL THREE approaches to estimate value
6. Reconcile the estimated values to determine the final value estimate
7. Communicate the final value estimate
Highest and Best Use - (ANSWER)Legally permissible
Physically possible
Financially feasible
Maximally productive
