Principles of Real Estate 2 Champion
LATEST UPDATED 2025/2026 Exam
With COMPLETE QUESTIONS AND
SURE VERIFIED SOLUTIONS 100%
GRADED AT A+ SCORE!!
What does D.U.S.T. stand for? - ANSWER ✔ Demand, Utility, Scarcity,
Transferability
the percentage of value or sales price that a lender is willing to finance -
ANSWER ✔ Loan to Value Ratio (LTV)
For tax purposes the _______ is determined by the taxing authority.
a. assessed value
b. appraised value
c. market price
d. investment value - ANSWER ✔ a. assessed value
In the appraisal report, the property being appraised is referred to as the
_______ property.
a. Target property
,b. Comparable property
c. Sold property
d. Subject property - ANSWER ✔ d. Subject property
the value of a property is equal to the sum of the contributory value of
each of its component parts. - ANSWER ✔ principle of contribution
the forces acting on a parcel of land are always affecting the value of
the land - ANSWER ✔ PRINCIPLE OF CHANGE
the legal use that gives the greatest return in money and/or amenities. -
ANSWER ✔ HIGHEST AND BEST USE
the purchase price is affected by the expectation of future appeal and
benefits. - ANSWER ✔ PRINCIPLE OF ANTICIPATION
value is maximized when there is a reasonable degree of homogeneity,
or sameness, in a neighborhood. - ANSWER ✔ principle of conformity
reduction in value of property from causes such as deterioration or
obsolescence. - ANSWER ✔ Depreciation
1. Physical deterioration
,2. functional obsolesce
3. external obsolesce - ANSWER ✔ Types of depreciation
the loss in a property's value due to daily wear and tear. - ANSWER ✔
Physical deterioration
The legal procedure under which property
may be sold to satisfy an unpaid promissory
note - ANSWER ✔ Foreclosure
the value of a commodity is influenced by the cost of acquiring a
substitute or comparable item. - ANSWER ✔ principle of substitution
appraisal - ANSWER ✔ someones opinion of value.
The actual age of the property in years. - ANSWER ✔ Chronological
Age
The appraiser's estimate of the age of the house based upon its ongoing
maintenance and upgrades. - ANSWER ✔ Effective Age
TYPES OF APPRAISAL REVIEWS - ANSWER ✔ 1. Desk Review
2. Field Review
, to improve property when the value added by the improvement exceeds
cost of the improvement. - ANSWER ✔ PRINCIPLE OF INCREASING
AND DECREASING RETURNS
demand for real estate is great and the supply is short, prices in the
marketplace go up. - ANSWER ✔ PRINCIPLE OF SUPPLY AND
DEMAND
The presence of lower-priced properties in the area will cause a decline
in the value of the subject property - ANSWER ✔ PRINCIPLE OF
REGRESSION
The absence of competition will cause prices to increase in the
marketplace - ANSWER ✔ PRINCIPLE OF COMPETITION
Acronym for Characteristics of Value - ANSWER ✔ D.U.S.T.
The price a willing seller will sell for and the price a willing buyer will
pay. - ANSWER ✔ Market value
Most common misunderstood appraisal concept? - ANSWER ✔ Market
Value
LATEST UPDATED 2025/2026 Exam
With COMPLETE QUESTIONS AND
SURE VERIFIED SOLUTIONS 100%
GRADED AT A+ SCORE!!
What does D.U.S.T. stand for? - ANSWER ✔ Demand, Utility, Scarcity,
Transferability
the percentage of value or sales price that a lender is willing to finance -
ANSWER ✔ Loan to Value Ratio (LTV)
For tax purposes the _______ is determined by the taxing authority.
a. assessed value
b. appraised value
c. market price
d. investment value - ANSWER ✔ a. assessed value
In the appraisal report, the property being appraised is referred to as the
_______ property.
a. Target property
,b. Comparable property
c. Sold property
d. Subject property - ANSWER ✔ d. Subject property
the value of a property is equal to the sum of the contributory value of
each of its component parts. - ANSWER ✔ principle of contribution
the forces acting on a parcel of land are always affecting the value of
the land - ANSWER ✔ PRINCIPLE OF CHANGE
the legal use that gives the greatest return in money and/or amenities. -
ANSWER ✔ HIGHEST AND BEST USE
the purchase price is affected by the expectation of future appeal and
benefits. - ANSWER ✔ PRINCIPLE OF ANTICIPATION
value is maximized when there is a reasonable degree of homogeneity,
or sameness, in a neighborhood. - ANSWER ✔ principle of conformity
reduction in value of property from causes such as deterioration or
obsolescence. - ANSWER ✔ Depreciation
1. Physical deterioration
,2. functional obsolesce
3. external obsolesce - ANSWER ✔ Types of depreciation
the loss in a property's value due to daily wear and tear. - ANSWER ✔
Physical deterioration
The legal procedure under which property
may be sold to satisfy an unpaid promissory
note - ANSWER ✔ Foreclosure
the value of a commodity is influenced by the cost of acquiring a
substitute or comparable item. - ANSWER ✔ principle of substitution
appraisal - ANSWER ✔ someones opinion of value.
The actual age of the property in years. - ANSWER ✔ Chronological
Age
The appraiser's estimate of the age of the house based upon its ongoing
maintenance and upgrades. - ANSWER ✔ Effective Age
TYPES OF APPRAISAL REVIEWS - ANSWER ✔ 1. Desk Review
2. Field Review
, to improve property when the value added by the improvement exceeds
cost of the improvement. - ANSWER ✔ PRINCIPLE OF INCREASING
AND DECREASING RETURNS
demand for real estate is great and the supply is short, prices in the
marketplace go up. - ANSWER ✔ PRINCIPLE OF SUPPLY AND
DEMAND
The presence of lower-priced properties in the area will cause a decline
in the value of the subject property - ANSWER ✔ PRINCIPLE OF
REGRESSION
The absence of competition will cause prices to increase in the
marketplace - ANSWER ✔ PRINCIPLE OF COMPETITION
Acronym for Characteristics of Value - ANSWER ✔ D.U.S.T.
The price a willing seller will sell for and the price a willing buyer will
pay. - ANSWER ✔ Market value
Most common misunderstood appraisal concept? - ANSWER ✔ Market
Value
