Principles of Real Estate 2 Champion Exam With 100% Correct Answers 2024

Principles of Real Estate 2 Champion Exam With 100% Correct Answers 2024 Functional obsolescence - answerRefers to the loss in desirability of the style, layout or function of an element of a property over time Sales comparison - answerbest indicator of value for existing properties highest and best use - answerthe legal use for property that gives the greatest return in money and/or amenities external obsolescence - answerthe loss in value of a property caused by factors outside the property itself principle of contribution - answersuggests the value of a property is equal to the sum of the contributory value of each of its components. most important aspect is that cost does not equal value most important aspect of principle of contribution - answercost does not equal value (for example...swimming pool) principle of change - answerforces acting on a parcel of land are always affecting the value of the land principle of anticipation - answerthe purchase price is affected by the expectation of future appeal and benefits principle of substitution - answerthe value of a commodity if influenced by the cost of acquiring a substitute or comparable item. principle of conformity - answervalue is maximized when there is a reasonable degree of homogeneity in a neighborhood principle of increasing and decreasing returns - answerwhen the value added by an improvement exceeds the cost...do not over improve. principle of supply and demand - answerwhen demand is high and supply is short, prices go up - and vice versa principle of regression - answerpresence of lower-priced properties in the area will cause a decline in the value of the subject property principle of progression - answerpresence of higher-priced properties in the area will cause an increase in the value of the subject property