Exam (elaborations)
Principles of Real Estate 2 Champion
- Institution
- Principles Of Real Estate 2 Champion
Principles of Real Estate 2 Champion
[Show more]
Content preview
Principles of Real Estate 2 ChampionAn opinion of value Correct Ans - The appraised value of a property is:
assessed value Correct Ans - the amount that your local government
determines your property to be worth for tax purposes
subject property Correct Ans - The property that is being appraised.
ad valorem Correct Ans - according to value
Principle of Conformity Correct Ans - Maximum value is found when
there is a reasonable degree of similarity or homogeneity
USPAP (Uniform Standards of Professional Appraisal Practice) Correct
Ans - Standards that have been established by the Appraisal Standards
Board of the Appraisal Foundation.
appraisal Correct Ans - An appraiser's opinion of value.
URAR (Uniform Residential Appraisal Report) Correct Ans - Fannie
Mae Form 1004/Freddie Mac 70
Principle of Progression Correct Ans - The value of a subject property
is increased by the value of surrounding properties
Market Value Correct Ans - The most probable price a property should
bring in a competitive and open market under all conditions requisite to a fair
sale.
value Correct Ans - Does not always equal price.
Scarcity Correct Ans - if a type of property in a market area is too
abundant, it has reduced value.
Highest and Best Use Correct Ans - The legal use of property giving the
greatest return in money or amenities
, Principal of Substitution Correct Ans - the value of a commodity is
influenced by the cost of acquiring a substitute or comparable item.
Field Review Correct Ans - Many lenders, especially when dealing with
high-LTV loans, will order this type of appraisal
Principle of Anticipation Correct Ans - States that the purchase price is
affected by the expectation of future appeal and benefits
Functional Obsolescence Correct Ans - The loss in desirability of the
style, layout, or function of an element of a property over time.
Sales Comparison Correct Ans - The approach that estimates value by
comparing the subject property with recently sold similar properties
External Obsolescence Correct Ans - loss of value due to factors
beyond the property boundaries
Forclosure Correct Ans - when a bank takes back a property and
auctions it off to recover the unpaid loan amount
loan pools Correct Ans - investors assign large blocks of loans as
collateral to back mortgage backed securities.
Primary Mortgage Market Correct Ans - the loan origination market
where borrowers and lenders negotiate mortgage terms
Redlining Correct Ans - a practice in which banks refuse to make loans
to people living in certain geographic locations
Underwriting Correct Ans - the process of making a lending decision.
Origination Correct Ans - The process of making or initiating a new
mortgage loan.
PMI (Private Mortgage Insurance) Correct Ans - Insurance that
protects the lender in case the borrower defaults and is unable to repay the
loan. Generally a borrower must pay PMI if their equity is less than 20% of the
home's value.
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 LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$13.68. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60281 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now