CHAMPIONS PRINCIPLES OF REAL ESTATE 2 | ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS | 100% ACCURATE, PROVEN AND GRADED A+
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
请您
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
, Market Value - (Answer)the most probable price a property should bring in a competitive and
open market under fair conditions requisit to a fair sale.
appraisal process - (Answer)The value of a property may be affected by social, economic,
governmental and environmental influences. An appraiser must always be aware of these
influences and possible changes in them that could affect market value.
Three approaches to value - (Answer)(1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
请您
Sales Comparison Approach - (Answer)A value for existing properties method for comparing
similar properties to the subject property. this is the best indicator.
Market Data Approach - (Answer)aka: sales comparison approach
Physical Deterioration - (Answer)Loss of value of a building from its reproduction cost, resulting
from wear and tear over time.
Functional Obsolescence - (Answer)loss of desirability of the style, layout or function of an
element of property over time
External Obsolescence - (Answer)Losses of property value caused by forces or conditions
beyond the borders of the property. ie. zoning, highways
promissary note - (Answer)evidence of a lean. simply a note
Foreclosure - (Answer)secured property may be sold ti satisfy the unpaid promissory note.
CORRECT DETAILED ANSWERS | 100% ACCURATE, PROVEN AND GRADED A+
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
请您
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
, Market Value - (Answer)the most probable price a property should bring in a competitive and
open market under fair conditions requisit to a fair sale.
appraisal process - (Answer)The value of a property may be affected by social, economic,
governmental and environmental influences. An appraiser must always be aware of these
influences and possible changes in them that could affect market value.
Three approaches to value - (Answer)(1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
请您
Sales Comparison Approach - (Answer)A value for existing properties method for comparing
similar properties to the subject property. this is the best indicator.
Market Data Approach - (Answer)aka: sales comparison approach
Physical Deterioration - (Answer)Loss of value of a building from its reproduction cost, resulting
from wear and tear over time.
Functional Obsolescence - (Answer)loss of desirability of the style, layout or function of an
element of property over time
External Obsolescence - (Answer)Losses of property value caused by forces or conditions
beyond the borders of the property. ie. zoning, highways
promissary note - (Answer)evidence of a lean. simply a note
Foreclosure - (Answer)secured property may be sold ti satisfy the unpaid promissory note.
