Champions Principles of Real Estate Exam Study Guide
and Questions with 100% Complete and Correct
Answers |A+ Grade
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
, Champions Principles of Real Estate Exam Study Guide
and Questions with 100% Complete and Correct
Answers |A+ Grade
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.
and Questions with 100% Complete and Correct
Answers |A+ Grade
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
, Champions Principles of Real Estate Exam Study Guide
and Questions with 100% Complete and Correct
Answers |A+ Grade
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.
