Principles of Real Estate Exam With 100% Correct Answers

Principles of Real Estate Exam With 100% Correct Answers Loss of value due to lack of modernization is called: - answerFunctional obsolescence The __________ is considered the most reliable approach to value because it is based on verifiable market events. - answerSales comparison approach A loss in a property's value due to daily wear and tear is an example of _______ - answerPhysical deterioration The appraiser will use the cost approach to value: - answerA unique building A real property appraisal will contain an analysis of the each of the following, EXCEPT: - answerPersonal property The appraisal principle of conformity tells us that a house is worth the most when: - answerIt is in a neighborhood of similarly priced homes Official property value for tax purposes is called: - answerAssessed value The appraisal principle of __________ states that the purchase price of a property is affected by the expectation of future appeal and benefits. - answerAnticipation The best definition of market value is: - answerThe most probable price a property should bring in a competitive and open market The effective age of a house can be younger than its __________ if it has been well-maintained. - answerChronological age In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure? - answerThe Cost Approach The primary purpose of the FHA is: - answerTo insure loans When a loan is funded, the FHA charges a(n) __________ which can be paid at closing or added to the loan at funding. - answerUp-Front Mortgage Insurance Premium The borrower's monthly payment includes principal and interest plus one-twelfth of the annual property tax assessment and one-twelfth of the annual insurance premium. This is a: - answerBudget loan Which of the following statements about the use of gift funds in government loans is true? - answerProperty must be owner-occupied, Donor must be a relative, domestic partner, or fiancé, Gift funds may be used for the entire down payment A person who brings a borrower and a lender together for a fee is called: - answerA lender's agent Most of the specific requirements imp