Champions Principles of Real Estate 2 Exam Questions with correct solutions

appraisal - ANSWER-value of a property maybe affected by social, economic, govt and environmental influences Loan-to-Value Ratio (LTV) - ANSWER-The percentage of value or sales price that a lender is willing to finance. limited appraisal report - ANSWER-exterior only/drive by inspection. deemed as low risk loan highest and best use of property - ANSWER-legal use that gives the greatest return Principal of Contribution - ANSWER-cost does not equal value Residential Mortgage Loan Originators (RMLO) - ANSWER-Must be certified licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage lending) Principle of Anticipation - ANSWER-purchase price is affected by the expectation of future appeal and benefits Principal of Substitution - ANSWER-value of a commodity is influenced by the cost of acquiring subsitute or comparable item Principal of progression - ANSWER-value of properties around yours goes up; so does yours Principal of Regression - ANSWER-The Value of more expensive home placed in a neighborhood of less expensive homes will drop in value