Exam (elaborations)
Principles of Real Estate 2 Champions School of Real Estate Exam 2023
- Course
- Institution
Principles of Real Estate 2 Champions School of Real Estate Exam 2023...
[Show more]
1 review
By: sbest1313 • 8 months ago
Content preview
Principles of Real Estate 2 Champions School of RealEstate Exam 2023
appraisal - ANSWER appraisers opinion of value
principal of contribution - ANSWER the value if the property is equal to the sum if the
contributory value of each of its component parts.
loan to value ratio - ANSWER percentage of value or sales price that a lender is willing
to finance.
desk review - ANSWER goes through items as they analyze the appraisal report for
completeness and acceptable conclusions
field review - ANSWER independent 3rd party appraiser will be contracted to review
the appraisal report then verify the accuracy
limited appraisal - ANSWER exterior only/ drive by inspection (low risk loans)
subject property - ANSWER property being appraised
highest and best use - ANSWER gives greatest return in money or amenities
principle of change - ANSWER forces acting on the parcel of land are always affecting
the value of the land.
principle of anticipation - ANSWER purchase price is affected by the expectation of of
future appeal and benefits.
principle of substitution - ANSWER value of a commodity is influenced by the cost of
acquiring a substitute or a comparable item.
principle of conformity - ANSWER maximized value when homogeneity in
neighborhood
principle of increasing and decreasing returns - ANSWER value added to improvement
exceeds the cost of improvement.
principle of supply and demand - ANSWER supply is short, prices go up. high supply,
low demand, prices go down
principle of regression - ANSWER presence of lower priced properties in the area will
cause a decline in the value of a subject property
principle of competition - ANSWER completion causes prices to increase
,market value - ANSWER most reasonable price a property should bring in a
competitive open market.
ad valorem - ANSWER according to value
depreciation - ANSWER loss in value due to any cause
assessed value - ANSWER for tax purposes- determined by tax authority- not reliable
estimate of market value
chronological age - ANSWER physical number of years
sales comparison approach "market data approach" - ANSWER compares subject
property charectoristcs with those of comparable properties which have recently sold
functional obsolescence - ANSWER loss in value by factors outside
sales comparison - ANSWER price a wiling seller will sell for & price willing buyer will
buy.
cost approach to value - ANSWER estimate of value based on current construction
costs. less depreciation, plus land value.
effective age - ANSWER age of structure based off observed physical condition
determined by the degree of maintenance and repair
uspap - ANSWER uniform standards of appraisal practice- established by appraisal
foundation
urar - ANSWER uniform residential appraisal report aka fannie mae form 1004, Freddie
mac form 70.
principle of progression - ANSWER value of subject property is increased by value of
surrounding properties
net adjustment - ANSWER absolute adjustments made to the comparable, considering
those that are +/-
gross adjustments - ANSWER sum of all adjustments.
gross rent multiplier - ANSWER grm= sales price/ monthly rent
net income - ANSWER gross income- expenses
ivr(income, return on investment, value) - ANSWER if similar properties in the market
are selling at prices that yield and investor a return of x%
, potential rate of return(income, return on investment, value) - ANSWER r=I/v
certain rate of return (income, return on investment, value) - ANSWER I=v*r
pud- planned unit development - ANSWER subdivision that includes locally owned
commodities and common facilities
mortgagor - ANSWER the borrower
mortgagee - ANSWER the lender
promissory note (real estate lien note) - ANSWER unconditional promise to pay
mortgage - ANSWER document that pledges the property as security for repayment of
the note.
foreclosure - ANSWER legal procedure where secured property is sold to pay unpaid
note.
REO- real estate owned - ANSWER foreclosed property
title theory - ANSWER mortgage is a transfer of owner ship
lien theory - ANSWER borrower retains ownership, but is subject to the lein
primary mortgage market - ANSWER borrowers and lenders come to negotiate.
bonds - ANSWER fixed income investment- money mortgage companies use to make
loans
warehouse line of credit - ANSWER mortgage notes repaid by sale of notes through
the secondary market
mortgage banker - ANSWER source of residential loans
mortgage broker - ANSWER source of commercial loans
correspondent lender - ANSWER hybrid of commercial and residential loans
underwriting - ANSWER evaluating borrowers loan application to determine risk
processing - ANSWER file built on credit information and to be used in underwriting
servicing - ANSWER sending monthly payment statements, and collecting monthly
payments, maintaining records and balances.
SAFE act - ANSWER secure and fair enforcement for mortgage licensing-enhance
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Boostertips. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71498 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now