Principles of Real Estate 2 Champions School of Real Estate test Correctly Answered 2024

Principles of Real Estate 2 Champions School of Real Estate test Correctly Answered 2024 appraisal - Answer -appraisers opinion of value principal of contribution - Answer -the value if the property is equal to the sum if the contributory value of each of its component parts. loan to value ratio - Answer -percentage of value or sales price that a lender is willing to finance. desk review - Answer -goes through items as they analyze the appraisal report for completeness and acceptable conclusions field review - Answer -independent 3rd party appraiser will be contracted to review the appraisal report then verify the accuracy limited appraisal - Answer -exterior only/ drive by inspection (low risk loans) subject property - Answer -property being appraised highest and best use - Answer -gives greatest return in money or amenities principle of change - Answer -forces acting on the parcel of land are always affecting the value of the land. principle of anticipation - Answer -purchase price is affected by the expectation of of future appeal and benefits. principle of substitution - Answer -value of a commodity is influenced by the cost of acquiring a substitute or a comparable item. principle of conformity - Answer -maximized value when homogeneity in neighborhood principle of increasing and decreasing returns - Answer -value added to improvement exceeds the cost of improvement. principle of supply and demand - Answer -supply is short, prices go up. high supply, low demand, prices go down principle of regression - Answer -presence of lower priced properties in the area will cause a decline in the value of a subject property principle of competition - Answer -completion causes prices to increasemarket value - Answer -most reasonable price a property should bring in a competitive open market. ad valorem - Answer -according to value depreciation - Answer -loss in value due to any cause assessed value - Answer -for tax purposes- determined by tax authority- not reliable estimate of market value chronological age - Answer -physical number of years sales comparison approach "market data approach" - Answer -compares subject property charectoristcs with those of comparable properties which have recently sold functional obsolescence - Answer -loss in value by factors outside sales comparison - Answer -price a wiling seller will sell for & price willing buyer will buy. cost approach to value - Answer -estimate of value based on current construction costs.