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Texas Principles Of Real Estate II – Correctly Answered Questions $18.99   Add to cart

Exam (elaborations)

Texas Principles Of Real Estate II – Correctly Answered Questions

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  • Course
  • TEXAS PRINCIPLES OF REAL ESTATE
  • Institution
  • TEXAS PRINCIPLES OF REAL ESTATE

Texas Principles Of Real Estate II – Correctly Answered Questions

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  • September 11, 2024
  • 33
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • TEXAS PRINCIPLES OF REAL ESTATE
  • TEXAS PRINCIPLES OF REAL ESTATE
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Texas Principles Of Real Estate II – Correctly Answered
Questions

Mixed Numbers Right Ans - A number containing both a whole number and
a fraction (examples: 1⅓; 9⅞)

Improper Fractions Right Ans - a fraction with its numerator equal to or
greater than its denominator

Commission Calculation Right Ans - Sales price X rate of commission = total
commission

Solving for the Commission Rate Right Ans - Commission Rate =
Commission ÷ Price

Solving for the Property's Price Right Ans - Price = Commission ÷
Commission Rate

Profit Right Ans - Profit (or Loss) = Selling price - Original cost

Profit Percentage Right Ans - Percentage of profit = Profit ÷ Original cost

Profit Margin Right Ans - Profit margin = Profit ÷ Selling price

Interest Right Ans - the price paid for the use of borrowed money

3 types of interest calculations Right Ans - Simple interest, add-on interest,
and compound interest

Simple interest Right Ans - Interest = principal x rate x time

Add-on interest Right Ans - loan amount x contracted interest rate x
number of payments

Add-on interest APR Right Ans - APR = 2 x number of payment periods in
one year x total financing charges ÷ (principal, or amount borrowed x
(number of scheduled payments +1)

,Compound interest Right Ans - interest which is computed on the principal
amount plus the accrued interest.

Compound Interest Formula Right Ans - Compound amount = Initial
deposit (1 + Interest rate)n

Points Right Ans - a one-time service charge to the borrower for making
the loan

Two types of points Right Ans - origination fee and discount points

Loan-to-Value Ratio (LTV) Right Ans - expresses the relationship between
a property's purchase price and its loan amount.

Loan-to-Value formula Right Ans - LTV ratio = (Loan amount ÷ Value)

Area of a rectangle Right Ans - Area = length x width

Area of a square Right Ans - Area = side x side

Area of a triangle Right Ans - Area = ½ base x height

Perimeter Right Ans - a lot or other shape is the sum of the length of all its
sides.

Acre Right Ans - A measure of land equal to 43,560 square feet.

Hectare Right Ans - is equal to 10,000 square meters or approximately 2.47
acres.

To convert acres to hectares Right Ans - divide the total acres by 2.47

Appraisal Right Ans - is an unbiased estimate of the nature, quality, value
or utility of an interest in or aspect of identified real estate and related
personalty as of a certain date.

Specific data Right Ans - This is information and details about the subject
property, as well as data (used for comparison) about comparable properties'
costs, income and expenses, sales and other relevant information

,General data Right Ans - This is information about the property's location -
its country, region, city, and, most importantly, its neighborhood

Steps in Appraisal Process Right Ans - 1. Define problem and scope of work
2. Collect, record, and verify the required data
3. Determine the property's highest and best use
4. Estimate the land value
5. Use ALL THREE approaches to estimate value
6. Reconcile the estimated values to determine the final value estimate
7. Communicate the final value estimate

Highest and Best Use Right Ans - Legally permissible
Physically possible
Financially feasible
Maximally productive

Describe the difference between specific and general data Right Ans -
Specific data is information and details about the subject property and the
comparables.
General data is information about the property's location - its country, region,
city, and neighborhood.

Direct sales comparison Right Ans - sales of comparable vacant parcels are
analyzed and adjusted to indicate a value for the subject land

Allocation Right Ans - a typical ratio of land value to total value is derived
from comparable properties and applied to the subject

Extraction Right Ans - land value is estimated by deducting the depreciated
cost of improvements on a property from the total sale price of the property.

Subdivision development analysis Right Ans - costs and profit are deducted
from estimated gross sale prices of subdivided and finished lots, and net sales
proceeds are discounted to present value

Land residual Right Ans - net operating income attributable to the land is
capitalized at market rates to obtain land value

, Ground rent capitalization Right Ans - ground rent of subject is capitalized
at market rates

In the cost approach to value Right Ans - the appraiser estimates a
property's value by adding the land value to the depreciated value of any
improvements to the property

The income approach Right Ans - (sometimes called the "income
capitalization approach") is used by appraisers who need to value commercial
and investment properties

In the sales comparison approach Right Ans - an appraiser examines the
price (or price per unit area) of similar properties recently sold or currently
being sold in the marketplace to come up with comparable value assessments

In the reconciliation step Right Ans - the appraiser looks at each approach
to value and all the data used to determine

Communicating the Appraisal Right Ans - 1. Short- or Long-Form Narrative
Reports
2. Reports
3. Letter or Oral Reports

Valuation Right Ans - is the process of estimating the value of an identified
interest in specific property as of a given date

Types of Value Right Ans - Investment Value
Insured Value
Use Value

Investment value Right Ans - is the amount of the return on an investment
that an income-producing property will produce

Insured value Right Ans - is the face amount a casualty or hazard insurance
policy will pay in case a property is deemed unusable

Use value Right Ans - (also known as value-in-use) of a property is the
value the property holds for the owner. Several factors contribute to this value

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