Champions Principles of Real Estate 2 Final Exam 2026
Questions & Answers Update (A+ GRADED
100% VERIFIED)\Louisiana post
appraisal
value of a property maybe affected by social, economic, govt and
environmental influences
Loan-to-Value Ratio (LTV)
The percentage of value or sales price that a lender is willing to
finance.
limited appraisal report
exterior only/drive by inspection. deemed as low risk loan
highest and best use of property
legal use that gives the greatest return
Principal of Contribution
cost does not equal value
,Residential Mortgage Loan Originators (RMLO)
Must be certified licence holders and is mandated by the SAFE
ACT (TX dept of savings and mortgage lending)
Principle of Anticipation
purchase price is affected by the expectation of future appeal and
benefits
Principal of Substitution
value of a commodity is influenced by the cost of acquiring subsitute
or comparable item
Principal of progression
value of properties around yours goes up; so does yours
Principal of Regression
The Value of more expensive home placed in a neighborhood of less
expensive homes will drop in value
Market Value
the most probable price a property should bring in a competitive and
open market under fair conditions requisit to a fair sale.
, appraisal process
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
(1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
Sales Comparison Approach
A value for existing properties method for comparing similar
properties to the subject property. this is the best indicator.
Market Data Approach
aka: sales comparison approach
Physical Deterioration
Loss of value of a building from its reproduction cost, resulting
from wear and tear over time.
Questions & Answers Update (A+ GRADED
100% VERIFIED)\Louisiana post
appraisal
value of a property maybe affected by social, economic, govt and
environmental influences
Loan-to-Value Ratio (LTV)
The percentage of value or sales price that a lender is willing to
finance.
limited appraisal report
exterior only/drive by inspection. deemed as low risk loan
highest and best use of property
legal use that gives the greatest return
Principal of Contribution
cost does not equal value
,Residential Mortgage Loan Originators (RMLO)
Must be certified licence holders and is mandated by the SAFE
ACT (TX dept of savings and mortgage lending)
Principle of Anticipation
purchase price is affected by the expectation of future appeal and
benefits
Principal of Substitution
value of a commodity is influenced by the cost of acquiring subsitute
or comparable item
Principal of progression
value of properties around yours goes up; so does yours
Principal of Regression
The Value of more expensive home placed in a neighborhood of less
expensive homes will drop in value
Market Value
the most probable price a property should bring in a competitive and
open market under fair conditions requisit to a fair sale.
, appraisal process
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
(1) The Sales Comparison Approach
(2) The Cost Approach,
(3) The Income Approach.
Sales Comparison Approach
A value for existing properties method for comparing similar
properties to the subject property. this is the best indicator.
Market Data Approach
aka: sales comparison approach
Physical Deterioration
Loss of value of a building from its reproduction cost, resulting
from wear and tear over time.
