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AceableAgent Real Estate Principals 2 Questions and answers latest update
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AceableAgent Real Estate Principals 2 Questions and answers latest update
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AceableAgent Real Estate Principals 2 General Data - correct answer Is information about a property's location. This could include the city, region, and neighborhood in which the poperty uis situated. Specific Data - correct answer Is information regarding the property itself. Principle if Anticipation - correct answer The idea that the present value of a property is affected by the ANTICIPATED income or utility that property will give its property owner. Principle of Contribution - correct answer The idea that a property's overall value is made up of the combined value of each of its parts. But the CONTRIBUTORY value of an item is not always equal to the price of that item. Principle of Substitution - correct answer States that the value of something is affected by the cost of getting a similar (substitute) item elsewhere. Principle of Change - correct answer Reminds us that the the condition of a property, the desirability of its location, and the market in which it exists can always change, which could affect the value of the property. Principles of Supply and Demand - correct answer States that when supply is low and demand is high, prices will increase. And if supply is plentiful and demand is low? Prices will then drop. Principle of Conformity - correct answer Claims that maximum value is realized when land use is in harmony with surrounding standards. Principles of Regression and Progression - correct answer States that the presence of higher value or lower homes near the subject property can change its value. DUST - correct answer Is a acronym to help us remember the four characteristics that make real estate valuable: Demand, Utility, Scarcity and Transferability. Demand - correct answer If there are multiple buyers interested in a property, the property with increase in value. Utility - correct answer Properties need to be useful or serve some kind of purpose in order to have value to a buyer. An empty lot, for example, may not look like it has much utility, but to a buyer who wants to build a custom home in that area, it's quit e useful. Scarcity - correct answer If the amount of housing in an area is low in supply, it grows in value. Transferability - correct answer Whether it's government rules or a title issue, anything that limits the transferability of real estate makes it less valuable. Appraisal Report - correct answer A REPORT from a licensed appraiser that's sums up a property's market value based on collected data. The lender usually asks for this during the mortgage origination process.* The Buyer - correct answer The appraisal report is usually paid by... The Lender - correct answer The appraiser that will complete the appraisal report is usually chosen by... *After a buyers offer is accepted and the LENDER is trying to give the buyer final approval. Appraisal Review - correct answer To double -check the accuracy of the appraisal. Conducted by another professional (either an independent or in -house specialist). Market Value - correct answer Is the price for which a property will sell if offered openly under normal conditions. (All about the present) Depreciation - correct answer The lose of value because of obsolescence (becoming obsolete) or deterioration. Effective Age - correct answer An estimated age that is influenced by the updates and quality of maintenance of the property. Comparative Market Analysis (CMA) - correct answer Uses information regarding recently sold homes in the area to arrive at an indication of what the fair market value of a similar property would be. Sales Comparison Approach (or Direct Sales Comparison) - correct answer An appraiser collects data from the previous sales of similar properties in the area with similar features: amenities, square footage, number of rooms, and location. *Also known as Market Data Approach. *An appraiser gathers at least three comparison sales, or comparables. *Used mostly for owner -occupied residential property and vacant land. Cost Approach - correct answer An appraiser needs to estimate the current costs of reconstructing the property with improvements (the replacement cost). This estimate is added to the value of the land, and then depreciation of the home since it was first b uilt is subtracted. *Used mostly for new construction. Quantity Survey Method - correct answer The appraiser tallies the value of everything that goes into the cost. *Method used for determining value within the cost approach. Unit -In-Place Method - correct answer Takes direct and indirect costs into account, combines them into a simplified cost for a building component. *Method used for determining value within the cost approach. Square Foot Method - correct answer The appraiser estimates a cost per square foot for that specific type of building and multiplies it by the square footage of the structure. *Method used for determining value within the cost approach. Income Approach - correct answer Determines the amount of income the property could make over a year and references the sale of other rental properties in the area.The benefits of buying summaries with Stuvia:
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