Champions Principal Of Real Estate 2 Exam Questions with high scores

Functional obsolescence - ANSWER-Refers to the loss in desirability of the style, layout, or function of an element of a property over time. Sales Comparison - ANSWER-The approach used as the best indicator of value for existing properties. External obsolescence - ANSWER-The loss in value of a property caused by factors outside of the property itself. loan-to-value ratio (LTV) - ANSWER-the percentage of value or sales price that a lender is willing to finance. An appraisal that is less than the sales price will generally result in one of the following: - ANSWER-* Termination of the transaction • Reduction of the sales price by the seller to match the appraised value • Payment of the difference between the sales price and the appraised value by the buyer/ borrower TYPES OF APPRAISAL REVIEWS: - ANSWER-Desk review - Most lenders, especially for conforming loan programs, conduct simple desk reviews, normally at their desks Field review- An independent, third-party appraiser will be contracted to review the appraisal report, and then actually verify the accuracy of the data, elements and procedures used by the original appraiser.