Aceable Agent - Principles of Real Estate II Exam Notes Correct Answers
1. TOTAL = PART/PERCENTAGE
PART = TOTAL x PERCENTAGE
PERCENTAGE = PART/ TOTAL: Formulas to calculate commission?
2. PRINCIPAL: What is the term that describes the money that is lent?
3. CASH TO CLOSE: Down payment minus earnest money?
4. TOTAL SALES PRICE: Loan payment + loan principal?
5. ORIGINATION POINTS: Loan points/fees charged 1% to compensate loan offi-
cers for underwriting and administering the loan.
6. DISCOUNT POINTS: Loan points/fees charged 1% in exchange for a lower
interest rate on the loan.
7. DAY OF CLOSING: When is the seller responsible for property taxes?
8. Uniform Standards of Professional Appraisal Practice (USPAP): Ethical code
for appraisers?
9. Appraiser Qualifications Board (AQB): Who regulates USPAP?
10. TALCB: Texas Appraiser Licensing & Certification Board acronym?
11. LICENSED RESIDENTIAL APPRAISER: Qualified to appraise:
-1 to 4 family non-complex residential units, <1 mill
-1 to 4 family residential complex unit, <$250k
-75 add'l education hours
-2000 hours experience over min 1 year
-Assoc Degree or 30 course credit hours
12. CERTIFIED RESIDENTIAL APPRAISER: Qualified to appraise:
-1 to 4 residential unit, any value okay
-125 add'l education hours
-2,500 hours experience over min 2 years
-Bach Degree or higher
13. CERTIFIED GENERAL APPRAISER: Qualified to appraise:
-any type of property
-225 add'l education hours
-Bach Degree
-3000 hours experience over min 2.5 years
-1/2 experience must be non residential
14. PRINCIPLE OF SUBSTITUTION: The value of something is affected by the
cost of getting a similar item elsewhere. Similar properties should have fairly similar
values.
15. PRINCIPLE OF CONFORMITY: Values are highest when the houses in a neigh-
borhood look roughly the same.
, Aceable Agent - Principles of Real Estate II Exam Notes Correct Answers
16. PRINCIPLE OF CONTRIBUTION: A property's overall value is made up of the
combined value of each of its parts. The value added by the improvement could be
higher or lower than the expense.
17. PRINCIPLE OF CHANGE: The condition of a property, the desirability of its
location, and the market in which it exists can always change. Appraisals are only
good for one month.
18. STEPS TO COMPLETE AN APPRAISEL: 1. state obj
2. list data
3. gather/record data
4. determine highest and best use
5. land value
6. estimate value using applicable approaches
7. final value estimate
8. complete and present report
19. MINIMUM BID AUCTION: What is a "No-reserve" auction? An auction which a
minimum acceptable sales price (reserve) is set.
20. 1. SALES COMPARISON APPROACH
2. THE COST APPROACH
3. THE INCOME APPROACH: What are 3 ways to calculate value?
21. COST APPROACH: Approach to calculate value based on improvements, loss,
comparable, by a) quantity survey method, b) unit in place method, c) square foot
method.
Property value = Cost of Reproduction - Depreciated Value + Land Value
22. INCOME APPROACH: Approach to calculate value for commercial properties?
NOI/ Cap Rate = Value
or "IRV"
23. 1. PRINCIPLE OF CONFORMITY
2. PRINCIPLE OF REGRESSION
3. PRINCIPLE OF PROGRESSION: What are 3 principles to consider when evalu-
ating property and neighborhood?
24. INVERSE CONDEMNATION: What is the term used to describe when the
property owner has the right to sue the government for taking their land?
1. TOTAL = PART/PERCENTAGE
PART = TOTAL x PERCENTAGE
PERCENTAGE = PART/ TOTAL: Formulas to calculate commission?
2. PRINCIPAL: What is the term that describes the money that is lent?
3. CASH TO CLOSE: Down payment minus earnest money?
4. TOTAL SALES PRICE: Loan payment + loan principal?
5. ORIGINATION POINTS: Loan points/fees charged 1% to compensate loan offi-
cers for underwriting and administering the loan.
6. DISCOUNT POINTS: Loan points/fees charged 1% in exchange for a lower
interest rate on the loan.
7. DAY OF CLOSING: When is the seller responsible for property taxes?
8. Uniform Standards of Professional Appraisal Practice (USPAP): Ethical code
for appraisers?
9. Appraiser Qualifications Board (AQB): Who regulates USPAP?
10. TALCB: Texas Appraiser Licensing & Certification Board acronym?
11. LICENSED RESIDENTIAL APPRAISER: Qualified to appraise:
-1 to 4 family non-complex residential units, <1 mill
-1 to 4 family residential complex unit, <$250k
-75 add'l education hours
-2000 hours experience over min 1 year
-Assoc Degree or 30 course credit hours
12. CERTIFIED RESIDENTIAL APPRAISER: Qualified to appraise:
-1 to 4 residential unit, any value okay
-125 add'l education hours
-2,500 hours experience over min 2 years
-Bach Degree or higher
13. CERTIFIED GENERAL APPRAISER: Qualified to appraise:
-any type of property
-225 add'l education hours
-Bach Degree
-3000 hours experience over min 2.5 years
-1/2 experience must be non residential
14. PRINCIPLE OF SUBSTITUTION: The value of something is affected by the
cost of getting a similar item elsewhere. Similar properties should have fairly similar
values.
15. PRINCIPLE OF CONFORMITY: Values are highest when the houses in a neigh-
borhood look roughly the same.
, Aceable Agent - Principles of Real Estate II Exam Notes Correct Answers
16. PRINCIPLE OF CONTRIBUTION: A property's overall value is made up of the
combined value of each of its parts. The value added by the improvement could be
higher or lower than the expense.
17. PRINCIPLE OF CHANGE: The condition of a property, the desirability of its
location, and the market in which it exists can always change. Appraisals are only
good for one month.
18. STEPS TO COMPLETE AN APPRAISEL: 1. state obj
2. list data
3. gather/record data
4. determine highest and best use
5. land value
6. estimate value using applicable approaches
7. final value estimate
8. complete and present report
19. MINIMUM BID AUCTION: What is a "No-reserve" auction? An auction which a
minimum acceptable sales price (reserve) is set.
20. 1. SALES COMPARISON APPROACH
2. THE COST APPROACH
3. THE INCOME APPROACH: What are 3 ways to calculate value?
21. COST APPROACH: Approach to calculate value based on improvements, loss,
comparable, by a) quantity survey method, b) unit in place method, c) square foot
method.
Property value = Cost of Reproduction - Depreciated Value + Land Value
22. INCOME APPROACH: Approach to calculate value for commercial properties?
NOI/ Cap Rate = Value
or "IRV"
23. 1. PRINCIPLE OF CONFORMITY
2. PRINCIPLE OF REGRESSION
3. PRINCIPLE OF PROGRESSION: What are 3 principles to consider when evalu-
ating property and neighborhood?
24. INVERSE CONDEMNATION: What is the term used to describe when the
property owner has the right to sue the government for taking their land?
