Champions School of Real Estate-Principles of Real Estate II Questions With Complete Solutions

Appraisal correct answer: an appraiser's opinion of value, used to determine market value property to secure the loan Loan to Value Ratio correct answer: Percentage of value or sales price that a lender is willing to finance Desk Review correct answer: an appraisal that simply reviews a checklist of items as they analyze the appraisal report for completeness and acceptable conclusions Field Review correct answer: An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. Limited Appraisals correct answer: an exterior only or drive by inspection Highest and Best use correct answer: the legal use that gives the greatest return in money or amenities. Principal of contribution correct answer: the value of a property is equal to the sum of the contributory value of each of its component parts. Cost does not equal value Principle of change correct answer: Change is constant, and are always effecting value Principle of Anticipation correct answer: the purchase price is affected by the expectation of future appeal and benefits Principle of Substitution correct answer: value of commodity is influenced by the cost of acquiring a substitute or comparable item Principal of Conformity correct answer: value is maximized when there is a reasonable degree of homogeneity or sameness