Champion Real Estate Exam Prep - Chapter 3 Questions with correct Answers

market - ANSWER-The most significant type of value for real estate licensees is ____________ value. Market value - ANSWER-________________ is defined as the price a willing seller will sell for, and the price a willing buyer will pay, when neither is acting under exceptional pressure. Market value - ANSWER-_______ is also defined as the most probable price. It is most commonly associated with the price a party pays for a property. Demand, Utility, Scarcity & Transferability - ANSWER-There are four basic characteristics of value: (DUST). What are they? appraisal - ANSWER-A(n) ______________ is an opinion. It is an estimate of value. The accuracy of the appraisal depends on the integrity and competency of the appraiser and the availability of the needed information. Highest and Best Use - ANSWER-A principle of value for appraisers called ______________ is the legal use that gives the greatest return in money and/or amenities. True - ANSWER-True/False Highest and best use can be considered the most important detail by an appraiser. d) Principle of Substitution - ANSWER-A principle of value for appraisers called ___________ sets an upper limit on price. Maximum value of a property is set by the cost of acquiring a similar substitute property. This principle is used to demonstrate the need to price correctly. An overpriced property will not sell. a) Principle of Contribution b) Principle of Increasing and Decreasing Returns c) Principle of Conformity d) Principle of Substitution e) Principle of Regression f) Principle of Competition g) Principle of Change h) Principle of Anticipation i) Principle of Balance