Aceable Agent Principles of Real Estate 2 Exam Questions & Answers 2023/2024
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Aceable Agent Principles of Real Estate 2
Institution
Aceable Agent Principles Of Real Estate 2
Aceable Agent Principles of Real Estate 2 Exam Questions & Answers 2023/2024
Amortization - ANSWER-The repayment of a loan principle over time
Arrears - ANSWER-Payment for an item or service after it's received
Down Payment - ANSWER-The initial payment made when buying something on credit,...
Aceable Agent Principles of Real Estate
2 Exam Questions & Answers 2023/2024
Amortization - ANSWER-The repayment of a loan principle over time
Arrears - ANSWER-Payment for an item or service after it's received
Down Payment - ANSWER-The initial payment made when buying something on credit, a ____________
is paid directly by the buyer to the seller
Proration - ANSWER-The allocation or distribution of an annual expense across smaller chunks of time
Acreage - ANSWER-A unit of measurement used to determine the size of land; 1 acre = 43560 square
feet
Appraisal - ANSWER-The value of property, based on factors determined by a certified appraiser
General data - ANSWER-Information about the area surrounding a property, this could include the city,
region, and neighborhood in which the property is situated
Specific Data - ANSWER-Information regarding the property itself
Limited Appraisal - ANSWER-A simple, abbreviated version of a regular appraisal
Market Value - ANSWER-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 - ANSWER-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 - ANSWER-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) - ANSWER-The limit on the value of a loan, usually a certain percentage of the
home's appraised value or sales price, whichever is lower
Subject Property - ANSWER-The property that is being evaluated in any given appraisal
Highest and Best Use - ANSWER-What is achieved when a property is used for the most appropriate
purpose with the highest returns
Principle of Anticipation - ANSWER-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 - ANSWER-A property's overall value is made of the combined value of each of
its parts
Principle of Substitution - ANSWER-The value of something is effected by the cost of getting a similar
(substitute) item elsewhere
Principle of Change - ANSWER-The condition of a property, the desirability of its location, and the market
in which it exists can always change
Principle of Conformity - ANSWER-Values are the highest when houses in a neighborhood look roughly
the same
Principle of Regression - ANSWER-Lower value properties surrounding a subject property are can drag
down the value of a property
Principle of Progression - ANSWER-Higher value properties of a subject property can bump of the value
of a property
, Sales Comparison Approach - ANSWER-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 - ANSWER-Determining value by considering how much the same property would cost to
build brand new at current prices (replacement cost), then adjusting for depreciation
Income Approach - ANSWER-Determining value by considering how much income the property would
generate when used as rental property
Depreciation - ANSWER-The loss of value because of obsolescence or deterioration
Functional Obsolescence - ANSWER-Loss of value because a property's function or appearance has gone
out of style or has been replaced by a more appealing version
External Obsolescence - ANSWER-Loss of value caused by negative forces outside the property which are
beyond the control of the owner (unfavorable changes in the environment or market)
Deterioration - ANSWER-Loss of value caused by physical wear and tear over time
Chronological age - ANSWER-The literal age of a property; a home built 30 years ago has a
________________ age of 30
Effective Age - ANSWER-An estimated age that is influenced by the updates and quality of maintenance
of the property; a 30 year house that has been well cared for might have an effective age of 15
Reconciliation - ANSWER-When an appraiser compares estimates using different techniques (cost
approach, sales approach, and/or income approach) and comes to a single number for value
Appraisal Report - ANSWER-a report from a licensed appraiser that sums up a property's market value
based on collected data
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