Principles of Real Estate 2 Champions Exam Questions with correct Answers

What does D.U.S.T. stand for? - ANSWER-Demand, Utility, Scarcity, Transferability the percentage of value or sales price that a lender is willing to finance - ANSWER-Loan to Value Ratio (LTV) the value of a property is equal to the sum of the contributory value of each of its component parts. - ANSWER-principle of contribution the forces acting on a parcel of land are always affecting the value of the land - ANSWER-PRINCIPLE OF CHANGE the legal use that gives the greatest return in money and/or amenities. - ANSWER-HIGHEST AND BEST USE the purchase price is affected by the expectation of future appeal and benefits. - ANSWER-PRINCIPLE OF ANTICIPATION value is maximized when there is a reasonable degree of homogeneity, or sameness, in a neighborhood. - ANSWER-principle of conformity reduction in value of property from causes such as deterioration or obsolescence. - ANSWER-Depreciation 1. Physical deterioration 2. functional obsolesce 3. external obsolesce - ANSWER-Types of depreciation the loss in a property's value due to daily wear and tear. - ANSWER-Physical deterioration