Champions 2020 Principles of Real Estate 2 Exam Questions & Answers 100% Accurate

APPRAISAL - ANSWER-AN OPINION OF VALUE THE LOAN-TO-VALUE RATIO (LTV) - ANSWER-IS THE PERCENTAGE OF THE APPRAISED VALUE OR THE SALES PRICE THAT A LENDER IS WILLING TO FINANCE FOR A BORROWER. THE LENDER WILL BASE THE LOAN TO VALUE ON THE LOWER OF THE SALES PRICE OR THE APPRAISED VALUE. - ANSWER-TRUE THE PRINCIPLE OF SUBSTITUTION - ANSWER-THE VALUE OF ONE PROPERTY, OR ITEM, IS INFLUENCED BY THE COST OF ACQUIRING A SUBSTITUTE OR COMPARABLE PROPERTY, OR ITEM. THE PRINCIPLE OF PROGRESSION - ANSWER-THE VALUE OF A PROPERTY IS INCREASED BY THE VALUE OF THE SURROUNDING PROPERTIES WHEN THOSE PROPERTIES HAVE HIGHER PRICES. THE PRINCIPLE OF REGRESSION - ANSWER-THE OPPOSITE OF PRINCIPLE OF PROGRESSION-THE PRESENCE OF LOWER PRICED PROPERTIES IN THE AREA WILL DECLINE IN THE VALUE OF THE SUBJECT PROPERTY. THE PRINCIPLE OF COMPETITION - ANSWER-IN THE ABSENCE OF COMPETITION, PRICES WILL INCREASE IN THE MARKETPLACE. INCREASE OF COMPETITION, PRICES WILL GO DOWN. 4 CHARACTERISTICS TO VALUE FOR PROPERTIES REPRESENTED BY THE ACRONYM D-U-S-T: - ANSWER-DEMAND, UTILITY, SCARCITY & TRANSFERABILITY