Champions Principles of Real Estate
Exam with Complete Solution (A+
Graded) || LATEST UPDATE 2026
appraisal -CORRECTANSWER value of a property maybe affected by social,
economic, govt and environmental influences
Loan-to-Value Ratio (LTV) -CORRECTANSWER The percentage of value or sales price
that a lender is willing to finance.
limited appraisal report -CORRECTANSWER exterior only/drive by inspection. deemed
as low risk loan
highest and best use of property -CORRECTANSWER legal use that gives the greatest
return
Principal of Contribution -CORRECTANSWER cost does not equal value
Residential Mortgage Loan Originators (RMLO) -CORRECTANSWER Must be certified
licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage
lending)
, Principle of Anticipation -CORRECTANSWER purchase price is affected by the
expectation of future appeal and benefits
Principal of Substitution -CORRECTANSWER value of a commodity is influenced by
the cost of acquiring subsitute or comparable item
Principal of progression -CORRECTANSWER value of properties around yours goes
up; so does yours
Principal of Regression -CORRECTANSWER The Value of more expensive home
placed in a neighborhood of less expensive homes will drop in value
Market Value -CORRECTANSWER the most probable price a property should bring in
a competitive and open market under fair conditions requisit to a fair sale.
appraisal process -CORRECTANSWER 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.
Three approaches to value -CORRECTANSWER (1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
Exam with Complete Solution (A+
Graded) || LATEST UPDATE 2026
appraisal -CORRECTANSWER value of a property maybe affected by social,
economic, govt and environmental influences
Loan-to-Value Ratio (LTV) -CORRECTANSWER The percentage of value or sales price
that a lender is willing to finance.
limited appraisal report -CORRECTANSWER exterior only/drive by inspection. deemed
as low risk loan
highest and best use of property -CORRECTANSWER legal use that gives the greatest
return
Principal of Contribution -CORRECTANSWER cost does not equal value
Residential Mortgage Loan Originators (RMLO) -CORRECTANSWER Must be certified
licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage
lending)
, Principle of Anticipation -CORRECTANSWER purchase price is affected by the
expectation of future appeal and benefits
Principal of Substitution -CORRECTANSWER value of a commodity is influenced by
the cost of acquiring subsitute or comparable item
Principal of progression -CORRECTANSWER value of properties around yours goes
up; so does yours
Principal of Regression -CORRECTANSWER The Value of more expensive home
placed in a neighborhood of less expensive homes will drop in value
Market Value -CORRECTANSWER the most probable price a property should bring in
a competitive and open market under fair conditions requisit to a fair sale.
appraisal process -CORRECTANSWER 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.
Three approaches to value -CORRECTANSWER (1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
