Champions Principles of Real Estate Quiz With solved Answers

Loan to Value Ratio - ANSWER-The percentage of value or sales price that a lender is willing to finance. Desk Review - ANSWER-For Conforming loans, simple desk reviews, normally at their desks. Field Review - ANSWER-When dealing with High-LTV loans will hire a third party appraiser to review the appraisal report Limited Appraisal Report - ANSWER-For Low LTV or low risk loans; drive-by, exterior only only inspections are deemed acceptable Highest and Best Use - ANSWER-The legal use that gives the greatest return in money and/or amenities. Principle of Contribution - ANSWER-The Value of a property is equal to the sum of the contributory value of each of its component parts. Principle of Change - ANSWER-The forces acting on a parcel of land are always affecting value of land Principle of Anticipation - ANSWER-The purchase price is affected by the expectation of future appeal and benefits Principle of Substitution - ANSWER-The value of commodity is influenced by the cost of acquiring a subtracting or comparable item. Principle of Conformity - ANSWER-Value is maximized when there is reasonable degree of homogenity, or sameness in a neighborhood.