Exam (elaborations)
Aceable Agent Principles of Real Estate 2 Exam Questions and Answers - Graded A
- Module
- Institution
Aceable Agent Principles of Real Estate 2 Exam
[Show more]
Seller
Follow
ALVINK2022
Reviews received
Content preview
Aceable Agent Principles of Real Estate 2 ExamAmortization - 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
Appraisal Review - Answer- a review of the appraisal report to make sure the appraisal meets the lender's standards
Desk Review - Answer- When a lender carries an appraisal review at the desk (as opposed to sending someone to the field) to make sure the original appraisal is accurate
Field Review - Answer- When a third party appraiser is sent back out to the property to check the validity of the first appraisal
Fair Market Value - Answer- The price for which a property will sell if offered openly under normal market conditions
Subject Property - Answer- The property that is subject of the CMA
Comparative Market Analysis - Answer- Also known as a CMA, this is a report generated by a license holder that compares prices of recently sold homes (comparables) in order to estimate the fair market value of a similar property (the "subject property")
Government Sponsored Enterprises - Answer- Publicly traded institutions that were created by Congress to provide liquidity, stability, and affordability to the mortgage market
General Agricultural Mortgage Corporation - Answer- A government-sponsored enterprise (GSE) providing a secondary market for agricultural and rural mortgage loans; also known as Farmer Mac
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 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 ALVINK2022. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.33. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now