Aceable Agent - Principles of Real Estate II Exam Notes Questions & Answers 100% Correct!

TOTAL = PART/PERCENTAGE PART = TOTAL x PERCENTAGE PERCENTAGE = PART/ TOTAL - ANSWERSFormulas to calculate commission? PRINCIPAL - ANSWERSWhat is the term that describes the money that is lent? CASH TO CLOSE - ANSWERSDown payment minus earnest money? TOTAL SALES PRICE - ANSWERSLoan payment + loan principal? ORIGINATION POINTS - ANSWERSLoan points/fees charged 1% to compensate loan officers for underwriting and administering the loan. DISCOUNT POINTS - ANSWERSLoan points/fees charged 1% in exchange for a lower interest rate on the loan. DAY OF CLOSING - ANSWERSWhen is the seller responsible for property taxes? Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWERSEthical code for appraisers? Appraiser Qualifications Board (AQB) - ANSWERSWho regulates USPAP? TALCB - ANSWERSTexas Appraiser Licensing & Certification Board acronym? LICENSED RESIDENTIAL APPRAISER - ANSWERSQualified to appraise: -1 to 4 family non-complex residential units, <1 mill -1 to 4 family residential complex unit, <$250k -75 add'l education hours -2000 hours experience over min 1 year -Assoc Degree or 30 course credit hours CERTIFIED RESIDENTIAL APPRAISER - ANSWERSQualified to appraise: -1 to 4 residential unit, any value okay -125 add'l education hours -2,500 hours experience over min 2 years -Bach Degree or higher CERTIFIED GENERAL APPRAISER - ANSWERSQualified to appraise: -any type of property -225 add'l education hours -Bach Degree -3000 hours experience over min 2.5 years -1/2 experience must be non residential PRINCIPLE OF SUBSTITUTION - ANSWERSThe value of something is affected by the cost of getting a similar item elsewhere. Similar properties should have fairly similar values. PRINCIPLE OF CONFORMITY - ANSWERSValues are highest when the houses in a neighborhood look roughly the same. PRINCIPLE OF CONTRIBUTION - ANSWERSA property's overall value is made up of the combined value of each of its parts. The value added by the improvement could be higher or lower than the expense. PRINCIPLE OF CHANGE - ANSWERSThe condition of a property, the desirability of its location, and the market in which it exists can always change. Appraisals are only good for one month. STEPS TO COMPLETE AN APPRAISEL - ANSWERS1. state obj 2. list data 3. gather/record data 4. determine highest and best use 5. land value 6. estimate value using applicable approaches 7. final value estimate 8. complete and present report MINIMUM BID AUCTION - ANSWERSWhat is a "No-reserve" auction? An auction which a minimum acceptable sales price (reserve) is set. 1. SALES COMPARISON APPROACH 2. THE COST APPROACH 3. THE INCOME APPROACH - ANSWERSWhat are 3 ways to calculate value? COST APPROACH - ANSWERSApproach to calculate value based on improvements, loss, comparable, by a) quantity survey method, b) unit in place method, c) square foot method.