Aceable Agent - Principles of Real Estate II Exam Notes
TOTAL = PART/PERCENTAGE
PART = TOTAL x PERCENTAGE
PERCENTAGE = PART/ TOTAL - ANSWER-Formulas to calculate commission?
PRINCIPAL - ANSWER-What is the term that describes the money that is lent?
CASH TO CLOSE - ANSWER-Down payment minus earnest money?
TOTAL SALES PRICE - ANSWER-Loan payment + loan principal?
ORIGINATION POINTS - ANSWER-Loan points/fees charged 1% to compensate loan officers for underwriting
and administering the loan.
DISCOUNT POINTS - ANSWER-Loan points/fees charged 1% in exchange for a lower interest rate on the loan.
DAY OF CLOSING - ANSWER-When is the seller responsible for property taxes?
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER-Ethical code for appraisers?
Appraiser Qualifications Board (AQB) - ANSWER-Who regulates USPAP?
TALCB - ANSWER-Texas Appraiser Licensing & Certification Board acronym?
LICENSED RESIDENTIAL APPRAISER - ANSWER-Qualified 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 - ANSWER-Qualified 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 - ANSWER-Qualified 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 - ANSWER-The value of something is affected by the cost of getting a similar item
elsewhere. Similar properties should have fairly similar values.
PRINCIPLE OF CONFORMITY - ANSWER-Values are highest when the houses in a neighborhood look roughly the
same.
PRINCIPLE OF CONTRIBUTION - ANSWER-A 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 - ANSWER-The 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 - ANSWER-1. 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 - ANSWER-What 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 - ANSWER-What are 3 ways to calculate value?
COST APPROACH - ANSWER-Approach 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 - ANSWER-Approach to calculate value for commercial properties?
TOTAL = PART/PERCENTAGE
PART = TOTAL x PERCENTAGE
PERCENTAGE = PART/ TOTAL - ANSWER-Formulas to calculate commission?
PRINCIPAL - ANSWER-What is the term that describes the money that is lent?
CASH TO CLOSE - ANSWER-Down payment minus earnest money?
TOTAL SALES PRICE - ANSWER-Loan payment + loan principal?
ORIGINATION POINTS - ANSWER-Loan points/fees charged 1% to compensate loan officers for underwriting
and administering the loan.
DISCOUNT POINTS - ANSWER-Loan points/fees charged 1% in exchange for a lower interest rate on the loan.
DAY OF CLOSING - ANSWER-When is the seller responsible for property taxes?
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER-Ethical code for appraisers?
Appraiser Qualifications Board (AQB) - ANSWER-Who regulates USPAP?
TALCB - ANSWER-Texas Appraiser Licensing & Certification Board acronym?
LICENSED RESIDENTIAL APPRAISER - ANSWER-Qualified 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 - ANSWER-Qualified 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 - ANSWER-Qualified 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 - ANSWER-The value of something is affected by the cost of getting a similar item
elsewhere. Similar properties should have fairly similar values.
PRINCIPLE OF CONFORMITY - ANSWER-Values are highest when the houses in a neighborhood look roughly the
same.
PRINCIPLE OF CONTRIBUTION - ANSWER-A 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 - ANSWER-The 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 - ANSWER-1. 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 - ANSWER-What 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 - ANSWER-What are 3 ways to calculate value?
COST APPROACH - ANSWER-Approach 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 - ANSWER-Approach to calculate value for commercial properties?
