Principles of Real Estate II (ACEABLE AGENT) - Real Estate Appraisal - Level 2(RATED A+)

Appraisal - ANSWERSthe value of a property, based on factor determined by the opinion of 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 simpler, abbreviated version of a regular appraisal Market Value - ANSWERSthe price for which a property will sell if offered openly under normal conditions. This refers to the economic principle; it's the price that a buy and seller would probably accept Appraised Value - ANSWERSrefers to the value given by a licensed appraiser during the mortgage origination process. 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 the 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 its property owner Priniciple of Contribution - ANSWERSA property's overall value is made up of the combined value of each of its parts Principle of Substitution - ANSWERSthe value of something is affected by the cost of getting a similar item elsewher 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 highest when the houses in a neighborhood look roughly the same Principle of Regression - ANSWERSlower-value properties surrounding a subject property can drag down the value of the property Principle of Progression - ANSWERShigher-value properties surrounding a subject property can bump up the value of the property Principles of Supply and Demand - ANSWERSwhen supply is low (not many available houses) and demand is high (lots of people want to buy houses), prices increase. Sales Comparison Approach - ANSWERSdetermining value by comparing the subject