Page | 1
CHAMPIONS PRINCIPLES OF REAL
ESTATE 2 QUESTIONS WITH
CORRECT ANSWERS LATEST UPDATE
2026
appraisal - correct answer-value of a property maybe affected by
social, economic, govt and environmental influences
Loan-to-Value Ratio (LTV) - correct answer-The percentage of
value or sales price that a lender is willing to finance.
limited appraisal report - correct answer-exterior only/drive by
inspection. deemed as low risk loan
highest and best use of property - correct answer-legal use that
gives the greatest return
Principal of Contribution - correct answer-cost does not equal
value
, Page | 2
Residential Mortgage Loan Originators (RMLO) - correct answer-
Must be certified licence holders and is mandated by the SAFE
ACT (TX dept of savings and mortgage lending)
Principle of Anticipation - correct answer-purchase price is
affected by the expectation of future appeal and benefits
Principal of Substitution - correct answer-value of a commodity is
influenced by the cost of acquiring subsitute or comparable item
Principal of progression - correct answer-value of properties
around yours goes up; so does yours
Principal of Regression - correct answer-The Value of more
expensive home placed in a neighborhood of less expensive
homes will drop in value
, Page | 3
Market Value - correct answer-the most probable price a property
should bring in a competitive and open market under fair
conditions requisit to a fair sale.
appraisal process - correct answer-The value of a property may
be affected by social, economic, governmental and environmental
influences. An appraiser must always be aware of these
influences and possible changes in them that could affect market
value.
Three approaches to value - correct answer-(1) The Sales
Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
Sales Comparison Approach - correct answer-A value for existing
properties method for comparing similar properties to the subject
property. this is the best indicator.
Market Data Approach - correct answer-aka: sales comparison
approach
CHAMPIONS PRINCIPLES OF REAL
ESTATE 2 QUESTIONS WITH
CORRECT ANSWERS LATEST UPDATE
2026
appraisal - correct answer-value of a property maybe affected by
social, economic, govt and environmental influences
Loan-to-Value Ratio (LTV) - correct answer-The percentage of
value or sales price that a lender is willing to finance.
limited appraisal report - correct answer-exterior only/drive by
inspection. deemed as low risk loan
highest and best use of property - correct answer-legal use that
gives the greatest return
Principal of Contribution - correct answer-cost does not equal
value
, Page | 2
Residential Mortgage Loan Originators (RMLO) - correct answer-
Must be certified licence holders and is mandated by the SAFE
ACT (TX dept of savings and mortgage lending)
Principle of Anticipation - correct answer-purchase price is
affected by the expectation of future appeal and benefits
Principal of Substitution - correct answer-value of a commodity is
influenced by the cost of acquiring subsitute or comparable item
Principal of progression - correct answer-value of properties
around yours goes up; so does yours
Principal of Regression - correct answer-The Value of more
expensive home placed in a neighborhood of less expensive
homes will drop in value
, Page | 3
Market Value - correct answer-the most probable price a property
should bring in a competitive and open market under fair
conditions requisit to a fair sale.
appraisal process - correct answer-The value of a property may
be affected by social, economic, governmental and environmental
influences. An appraiser must always be aware of these
influences and possible changes in them that could affect market
value.
Three approaches to value - correct answer-(1) The Sales
Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
Sales Comparison Approach - correct answer-A value for existing
properties method for comparing similar properties to the subject
property. this is the best indicator.
Market Data Approach - correct answer-aka: sales comparison
approach
