Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Amortization The repayment of a loan principle over time
Arrears Payment for an item or service after it's received
Down Payment The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller
Proration The allocation or distribution of an annual expense across smaller chunks of
time
Acreage A unit of measurement used to determine the size of land; 1 acre = 43560 square
feet
Appraisal The value of property, based on factors determined by a certified appraiser
General data Information about the area surrounding a property, this could include the
city, region, and neighborhood in which the property is situated
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Specific Data Information regarding the property itself
Limited Appraisal A simple, abbreviated version of a regular appraisal
Market Value The price for which a property would sell if offered openly under normal
conditions. This refers to the economic principle, it's the price that a buyer and seller would
probably accept
Appraised Value Refers to the value given by a licensed appraiser during the mortgage
origination process. Appraisers are chosen by the lender but paid for by the homebuyer.
Assessed Value Refers to the value placed on a property by a governmental unit for use in
levying annual real estate taxes
Loan-to-Value Ratio (LTV) The limit on the value of a loan, usually a certain percentage
of the home's appraised value or sales price, whichever is lower
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Subject Property The property that is being evaluated in any given appraisal
Highest and Best Use What is achieved when a property is used for the most appropriate
purpose with the highest returns
Principle of Anticipation The present value of a property is affected by the anticipated
income or utility that property will give to the property owner
Principle of Contribution A property's overall value is made of the combined value of
each of its parts
Principle of Substitution The value of something is effected by the cost of getting a
similar (substitute) item elsewhere
Principle of Change The condition of a property, the desirability of its location, and the
market in which it exists can always change
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Principle of Conformity Values are the highest when houses in a neighborhood look
roughly the same
Principle of Regression Lower value properties surrounding a subject property are can
drag down the value of a property
Principle of Progression Higher value properties of a subject property can bump of the
value of a property
Sales Comparison Approach Determining value by comparing the subject property to
similar properties ("comps") that have sold recently. It's most commonly used for single family
residences.
Cost Approach Determining value by considering how much the same property would
cost to build brand new at current prices (replacement cost), then adjusting for depreciation
Questions With Solutions 100% Correct
Amortization The repayment of a loan principle over time
Arrears Payment for an item or service after it's received
Down Payment The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller
Proration The allocation or distribution of an annual expense across smaller chunks of
time
Acreage A unit of measurement used to determine the size of land; 1 acre = 43560 square
feet
Appraisal The value of property, based on factors determined by a certified appraiser
General data Information about the area surrounding a property, this could include the
city, region, and neighborhood in which the property is situated
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Specific Data Information regarding the property itself
Limited Appraisal A simple, abbreviated version of a regular appraisal
Market Value The price for which a property would sell if offered openly under normal
conditions. This refers to the economic principle, it's the price that a buyer and seller would
probably accept
Appraised Value Refers to the value given by a licensed appraiser during the mortgage
origination process. Appraisers are chosen by the lender but paid for by the homebuyer.
Assessed Value Refers to the value placed on a property by a governmental unit for use in
levying annual real estate taxes
Loan-to-Value Ratio (LTV) The limit on the value of a loan, usually a certain percentage
of the home's appraised value or sales price, whichever is lower
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Subject Property The property that is being evaluated in any given appraisal
Highest and Best Use What is achieved when a property is used for the most appropriate
purpose with the highest returns
Principle of Anticipation The present value of a property is affected by the anticipated
income or utility that property will give to the property owner
Principle of Contribution A property's overall value is made of the combined value of
each of its parts
Principle of Substitution The value of something is effected by the cost of getting a
similar (substitute) item elsewhere
Principle of Change The condition of a property, the desirability of its location, and the
market in which it exists can always change
, Aceable Agent Principles of Real Estate 2
Questions With Solutions 100% Correct
Principle of Conformity Values are the highest when houses in a neighborhood look
roughly the same
Principle of Regression Lower value properties surrounding a subject property are can
drag down the value of a property
Principle of Progression Higher value properties of a subject property can bump of the
value of a property
Sales Comparison Approach Determining value by comparing the subject property to
similar properties ("comps") that have sold recently. It's most commonly used for single family
residences.
Cost Approach Determining value by considering how much the same property would
cost to build brand new at current prices (replacement cost), then adjusting for depreciation
