Champions School of Real Estate-Principles of Real Estate II Exam Questions & Answers 100% Correct

Appraisal - ANSWER-an appraiser's opinion of value, used to determine market value property to secure the loan Loan to Value Ratio - ANSWER-Percentage of value or sales price that a lender is willing to finance Desk Review - ANSWER-an appraisal that simply reviews a checklist of items as they analyze the appraisal report for completeness and acceptable conclusions Field Review - ANSWER-An independent 3rd party appraiser will be contracted to review the appraisal report to verify accuracy of data, elements and procedures used. Limited Appraisals - ANSWER-an exterior only or drive by inspection Highest and Best use - ANSWER-the legal use that gives the greatest return in money or amenities. Principal of contribution - ANSWER-the value of a property is equal to the sum of the contributory value of each of its component parts. Cost does not equal value Principle of change - ANSWER-Change is constant, and are always effecting value Principle of Anticipation - ANSWER-the purchase price is affected by the expectation of future appeal and benefits Principle of Substitution - ANSWER-value of commodity is influenced by the cost of acquiring a substitute or comparable item Principal of Conformity - ANSWER-value is maximized when there is a reasonable degree of homogeneity or sameness in a neighborhood.