Champions Principles of Real Estate 2 Questions With Complete Solutions

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 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 Market Value correct answer: the most probable price a property should bring in a competitive and open mark