Aceable Agent - Principles of Real Estate II Exam Notes 100% Verified

Aceable Agent - Principles of Real Estate II Exam Notes 100% Verified TOTAL = PART/PERCENTAGE PART = TOTAL x PERCENTAGE PERCENTAGE = PART/ TOTAL - answerFormulas to calculate commission? PRINCIPAL - answerWhat is the term that describes the money that is lent? CASH TO CLOSE - answerDown payment minus earnest money? TOTAL SALES PRICE - answerLoan payment + loan principal? ORIGINATION POINTS - answerLoan points/fees charged 1% to compensate loan officers for underwriting and administering the loan. DISCOUNT POINTS - answerLoan points/fees charged 1% in exchange for a lower interest rate on the loan. DAY OF CLOSING - answerWhen is the seller responsible for property taxes? Uniform Standards of Professional Appraisal Practice (USPAP) - answerEthical code for appraisers? Appraiser Qualifications Board (AQB) - answerWho regulates USPAP? TALCB - answerTexas Appraiser Licensing & Certification Board acronym? LICENSED RESIDENTIAL APPRAISER - answerQualified to appraise: -1 to 4 family non-complex residential units, <1 mill -1 to 4 family residential complex unit, <$250k -75 add'l education hours -2000 hours experience over min 1 year -Assoc Degree or 30 course credit hours CERTIFIED RESIDENTIAL APPRAISER - answerQualified to appraise: -1 to 4 residential unit, any value okay -125 add'l education hours -2,500 hours experience over min 2 years -Bach Degree or higher CERTIFIED GENERAL APPRAISER - answerQualified to appraise: -any type of property -225 add'l education hours -Bach Degree -3000 hours experience over min 2.5 years -1/2 experience must be non residential PRINCIPLE OF SUBSTITUTION - answerThe value of something is affected by the cost of getting a similar item elsewhere. Similar properties should have fairly similar values. PRINCIPLE OF CONFORMITY - answerValues are highest when the houses in a neighborhood look roughly the same. PRINCIPLE OF CONTRIBUTION - answerA property's overall value is made up of the combined value of each of its parts. The value added by the improvement could be higher or lower than the expense. PRINCIPLE OF CHANGE - answerThe condition of a property, the desirability of its location, and the market in which it exists can always change. Appraisals are only good for one month. STEPS TO COMPLETE AN APPRAISEL - answer1. state obj 2. list data 3. gather/record data 4. determine highest and best use 5. land value 6. estimate value using applicable approaches 7. final value estimate 8. complete and present report MINIMUM BID AUCTION - answerWhat is a "No-reserve" auction? An auction which a minimum acceptable sales price (reserve) is set. 1. SALES COMPARISON APPROACH 2. THE COST APPROACH 3. THE INCOME APPROACH - answerWhat are 3 ways to calculate value? COST APPROACH - answerApproach to calculate value based on improvements, loss, comparable, by a) quantity survey method, b) unit in place method, c) square foot method. Property value = Cost of Reproduction - Depreciated Value + Land Value INCOME APPROACH - answerApproach to calculate value for commercial properties? NOI/ Cap Rate = Value or "IRV" 1. PRINCIPLE OF CONFORMITY 2. PRINCIPLE OF REGRESSION 3. PRINCIPLE OF PROGRESSION - answerWhat are 3 principles to consider when evaluating property and neighborhood? INVERSE CONDEMNATION - answerWhat is the term used to describe when the property owner has the right to sue the government for taking their land? FREDDIE MAC - answerWhat is the acronym for the Federal Home Loan Mortgage Corp that deals with small thrift banks created in 1970? FARMER MAC - answerWhat is the acronym for Federal Agriculture Mortgage Corp that provides secondary market for agricultural real estate mortgage loans, rural housing loans, and rural utility coop loans? JOINT VENTURE - answerA commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities. -the sponsor is like a general manager -the authority of partners is limited -temporary business opposed to on