Champions Principles of Real Estate 2 Exam Questions with Correct Answers
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Course
NU1426
Institution
NU1426
Champions Principles of Real Estate 2 Exam Questions with Correct Answers
appraisal
Loan-to-Value Ratio (LTV)
limited appraisal report
highest and best use of property
Principal of Contribution
Residential Mortgage Loan Originators (RMLO)
Principle of Anticipation
Principal of Substitution...
Champions Principles of Real Estate 2 Exam
Questions with Correct Answers
1). Appraisal
Ans: value of a property maybe affected by social, economic, govt and environmental
influences
2). Loan-to-value ratio (ltv)
Ans: The percentage of value or sales price that a lender is willing to finance.
3). Limited appraisal report
Ans: exterior only/drive by inspection. deemed as low risk loan
4). Highest and best use of property
Ans: legal use that gives the greatest return
5). Principal of contribution
Ans: cost does not equal value
6). Residential mortgage loan originators (rmlo)
Ans: Must be certified licence holders and is mandated by the SAFE ACT (TX dept of
savings and mortgage lending)
7). Principle of anticipation
Ans: purchase price is affected by the expectation of future appeal and benefits
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, 8). Principal of substitution
Ans: value of a commodity is influenced by the cost of acquiring subsitute or
comparable item
9). Principal of progression
Ans: value of properties around yours goes up; so does yours
10). Principal of regression
Ans: The Value of more expensive home placed in a neighborhood of less expensive
homes will drop in value
11). Market value
Ans: the most probable price a property should bring in a competitive and open market
under fair conditions requisit to a fair sale.
12). Appraisal process
Ans: The value of a property may be affected by social, economic, governmental and
environmental influences. An appraiser must always be aware of these influences and
possible changes in them that could affect market value.
13). Three approaches to value
Ans: (1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
14). Sales comparison approach
Ans: A value for existing properties method for comparing similar properties to the
subject property. this is the best indicator.
15). Market data approach
Ans: aka: sales comparison approach
16). Physical deterioration
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