6/8/25, 7:52 AM Aceable Agent - Principles of Real Estate 2 EXAM ELABORATIONS QUESTIONS AND VERIFIED ANSWERS 2025 UPDATE | 100…
Aceable Agent - Principles of Real Estate 2 EXAM
ELABORATIONS QUESTIONS AND VERIFIED
ANSWERS 2025 UPDATE | 100% SOLVED
Save
Terms in this set (288)
Amortization The repayment of a loan principle over time
Arrears Payment for an item or service after it's received
The initial payment made when buying something on
Down Payment credit, a ____________ is paid directly by the buyer to the
seller
The allocation or distribution of an annual expense
Proration
across smaller chunks of time
A unit of measurement used to determine the size of
Acreage
land; 1 acre = 43560 square feet
The value of property, based on factors determined
Appraisal
by a certified appraiser
Information about the area surrounding a property,
General data this could include the city, region, and neighborhood
in which the property is situated
Specific Data Information regarding the property itself
Limited Appraisal A simple, abbreviated version of a regular appraisal
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,6/8/25, 7:52 AM Aceable Agent - Principles of Real Estate 2 EXAM ELABORATIONS QUESTIONS AND VERIFIED ANSWERS 2025 UPDATE | 100…
The price for which a property would sell if offered
openly under normal conditions. This refers to the
Market Value
economic principle, it's the price that a buyer and
seller would probably accept
Refers to the value given by a licensed appraiser
during the mortgage origination process. Appraisers
Appraised Value
are chosen by the lender but paid for by the
homebuyer.
Refers to the value placed on a property by a
Assessed Value governmental unit for use in levying annual real estate
taxes
The limit on the value of a loan, usually a certain
Loan-to-Value Ratio (LTV) percentage of the home's appraised value or sales
price, whichever is lower
The property that is being evaluated in any given
Subject Property
appraisal
What is achieved when a property is used for the most
Highest and Best Use
appropriate purpose with the highest returns
The present value of a property is affected by the
Principle of Anticipation anticipated income or utility that property will give to
the property owner
A property's overall value is made of the combined
Principle of Contribution
value of each of its parts
The value of something is effected by the cost of
Principle of Substitution
getting a similar (substitute) item elsewhere
The condition of a property, the desirability of its
Principle of Change location, and the market in which it exists can always
change
Values are the highest when houses in a
Principle of Conformity
neighborhood look roughly the same
Lower value properties surrounding a subject
Principle of Regression
property are can drag down the value of a property
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, 6/8/25, 7:52 AM Aceable Agent - Principles of Real Estate 2 EXAM ELABORATIONS QUESTIONS AND VERIFIED ANSWERS 2025 UPDATE | 100…
Higher value properties of a subject property can
Principle of Progression
bump of the value of a property
Determining value by comparing the subject property
Sales Comparison
to similar properties ("comps") that have sold recently.
Approach
It's most commonly used for single family residences.
Determining value by considering how much the
same property would cost to build brand new at
Cost Approach
current prices (replacement cost), then adjusting for
depreciation
Determining value by considering how much income
Income Approach the property would generate when used as rental
property
The loss of value because of obsolescence or
Depreciation
deterioration
Loss of value because a property's function or
Functional Obsolescence appearance has gone out of style or has been
replaced by a more appealing version
Loss of value caused by negative forces outside the
External Obsolescence property which are beyond the control of the owner
(unfavorable changes in the environment or market)
Loss of value caused by physical wear and tear over
Deterioration
time
The literal age of a property; a home built 30 years
Chronological age
ago has a ________________ age of 30
An estimated age that is influenced by the updates
and quality of maintenance of the property; a 30 year
Effective Age
house that has been well cared for might have an
effective age of 15
When an appraiser compares estimates using different
techniques (cost approach, sales approach, and/or
Reconciliation
income approach) and comes to a single number for
value
https://quizlet.com/1052322362/aceable-agent-principles-of-real-estate-2-exam-elaborations-questions-and-verified-answers-2025-update-100-solve… 3/25
Aceable Agent - Principles of Real Estate 2 EXAM
ELABORATIONS QUESTIONS AND VERIFIED
ANSWERS 2025 UPDATE | 100% SOLVED
Save
Terms in this set (288)
Amortization The repayment of a loan principle over time
Arrears Payment for an item or service after it's received
The initial payment made when buying something on
Down Payment credit, a ____________ is paid directly by the buyer to the
seller
The allocation or distribution of an annual expense
Proration
across smaller chunks of time
A unit of measurement used to determine the size of
Acreage
land; 1 acre = 43560 square feet
The value of property, based on factors determined
Appraisal
by a certified appraiser
Information about the area surrounding a property,
General data this could include the city, region, and neighborhood
in which the property is situated
Specific Data Information regarding the property itself
Limited Appraisal A simple, abbreviated version of a regular appraisal
https://quizlet.com/1052322362/aceable-agent-principles-of-real-estate-2-exam-elaborations-questions-and-verified-answers-2025-update-100-solve… 1/25
,6/8/25, 7:52 AM Aceable Agent - Principles of Real Estate 2 EXAM ELABORATIONS QUESTIONS AND VERIFIED ANSWERS 2025 UPDATE | 100…
The price for which a property would sell if offered
openly under normal conditions. This refers to the
Market Value
economic principle, it's the price that a buyer and
seller would probably accept
Refers to the value given by a licensed appraiser
during the mortgage origination process. Appraisers
Appraised Value
are chosen by the lender but paid for by the
homebuyer.
Refers to the value placed on a property by a
Assessed Value governmental unit for use in levying annual real estate
taxes
The limit on the value of a loan, usually a certain
Loan-to-Value Ratio (LTV) percentage of the home's appraised value or sales
price, whichever is lower
The property that is being evaluated in any given
Subject Property
appraisal
What is achieved when a property is used for the most
Highest and Best Use
appropriate purpose with the highest returns
The present value of a property is affected by the
Principle of Anticipation anticipated income or utility that property will give to
the property owner
A property's overall value is made of the combined
Principle of Contribution
value of each of its parts
The value of something is effected by the cost of
Principle of Substitution
getting a similar (substitute) item elsewhere
The condition of a property, the desirability of its
Principle of Change location, and the market in which it exists can always
change
Values are the highest when houses in a
Principle of Conformity
neighborhood look roughly the same
Lower value properties surrounding a subject
Principle of Regression
property are can drag down the value of a property
https://quizlet.com/1052322362/aceable-agent-principles-of-real-estate-2-exam-elaborations-questions-and-verified-answers-2025-update-100-solve… 2/25
, 6/8/25, 7:52 AM Aceable Agent - Principles of Real Estate 2 EXAM ELABORATIONS QUESTIONS AND VERIFIED ANSWERS 2025 UPDATE | 100…
Higher value properties of a subject property can
Principle of Progression
bump of the value of a property
Determining value by comparing the subject property
Sales Comparison
to similar properties ("comps") that have sold recently.
Approach
It's most commonly used for single family residences.
Determining value by considering how much the
same property would cost to build brand new at
Cost Approach
current prices (replacement cost), then adjusting for
depreciation
Determining value by considering how much income
Income Approach the property would generate when used as rental
property
The loss of value because of obsolescence or
Depreciation
deterioration
Loss of value because a property's function or
Functional Obsolescence appearance has gone out of style or has been
replaced by a more appealing version
Loss of value caused by negative forces outside the
External Obsolescence property which are beyond the control of the owner
(unfavorable changes in the environment or market)
Loss of value caused by physical wear and tear over
Deterioration
time
The literal age of a property; a home built 30 years
Chronological age
ago has a ________________ age of 30
An estimated age that is influenced by the updates
and quality of maintenance of the property; a 30 year
Effective Age
house that has been well cared for might have an
effective age of 15
When an appraiser compares estimates using different
techniques (cost approach, sales approach, and/or
Reconciliation
income approach) and comes to a single number for
value
https://quizlet.com/1052322362/aceable-agent-principles-of-real-estate-2-exam-elaborations-questions-and-verified-answers-2025-update-100-solve… 3/25
