Aceable Agent Principles of Real Estate 2 Questions & Answers 100% Correct!

Amortization - ANSWERSThe repayment of a loan principle over time Arrears - ANSWERSPayment for an item or service after it's received Down Payment - ANSWERSThe initial payment made when buying something on credit, a ____________ is paid directly by the buyer to the seller Proration - ANSWERSThe allocation or distribution of an annual expense across smaller chunks of time Acreage - ANSWERSA unit of measurement used to determine the size of land; 1 acre = 43560 square feet Appraisal - ANSWERSThe value of property, based on factors determined by a certified appraiser General data - ANSWERSInformation about the area surrounding a property, this could include the city, region, and neighborhood in which the property is situated Specific Data - ANSWERSInformation regarding the property itself Limited Appraisal - ANSWERSA simple, abbreviated version of a regular appraisal Market Value - ANSWERSThe price for which a property would sell if offered openly under normal conditions. This refers to the economic principle, it's the price that a buyer and seller would probably accept Appraised Value - ANSWERSRefers to the value given by a licensed appraiser during the mortgage origination process. Appraisers are chosen by the lender but paid for by the homebuyer. Assessed Value - ANSWERSRefers to the value placed on a property by a governmental unit for use in levying annual real estate taxes Loan-to-Value Ratio (LTV) - ANSWERSThe limit on the value of a loan, usually a certain percentage of the home's appraised value or sales price, whichever is lower Subject Property - ANSWERSThe property that is being evaluated in any given appraisal Highest and Best Use - ANSWERSWhat is achieved when a property is used for the most appropriate purpose with the highest returns Principle of Anticipation - ANSWERSThe present value of a property is affected by the anticipated income or utility that property will give to the property owner Principle of Contribution - ANSWERSA property's overall value is made of the combined value of each of its parts Principle of Substitution - ANSWERSThe value of something is effected by the cost of getting a similar (substitute) item elsewhere Principle of Change - ANSWERSThe condition of a property, the desirability of its location, and the market in which it exists can always change Principle of Conformity - ANSWERSValues are the highest when houses in a neighborhood look roughly the same Principle of Regression - ANSWERSLower value properties surrounding a subject property are can drag down the value of a property Principle of Progression - ANSWERSHigher value properties of a subject property can bu