1
Aceable Agent Principles of Real Estate
2 (2025) Comprehensive Questions and
Verified Answers (elaborated) get it
100% Accurate!!
The repayment of a loan principle over time - 🧠ANSWER ✔✔Amortization
Payment for an item or service after it's received - 🧠ANSWER ✔✔Arrears
The initial payment made when buying something on credit, a ____________ is
paid directly by the buyer to the seller - 🧠ANSWER ✔✔Down Payment
The allocation or distribution of an annual expense across smaller chunks of time -
🧠ANSWER ✔✔Proration
A unit of measurement used to determine the size of land; 1 acre = 43560 square
feet - 🧠ANSWER ✔✔Acreage
The value of property, based on factors determined by a certified appraiser -
🧠ANSWER ✔✔Appraisal
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, 2
Information about the area surrounding a property, this could include the city,
region, and neighborhood in which the property is situated - 🧠ANSWER
✔✔General data
Information regarding the property itself - 🧠ANSWER ✔✔Specific Data
A simple, abbreviated version of a regular appraisal - 🧠ANSWER ✔✔Limited
Appraisal
The price for which a property would sell if offered openly under normal
conditions. This refers to the economic principle, it's the price that a buyer and
seller would probably accept - 🧠ANSWER ✔✔Market Value
Refers to the value given by a licensed appraiser during the mortgage origination
process. Appraisers are chosen by the lender but paid for by the homebuyer. -
🧠ANSWER ✔✔Appraised Value
Refers to the value placed on a property by a governmental unit for use in levying
annual real estate taxes - 🧠ANSWER ✔✔Assessed Value
The limit on the value of a loan, usually a certain percentage of the home's
appraised value or sales price, whichever is lower - 🧠ANSWER ✔✔Loan-to-Value
Ratio (LTV)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
, 3
The property that is being evaluated in any given appraisal - 🧠ANSWER
✔✔Subject Property
What is achieved when a property is used for the most appropriate purpose with
the highest returns - 🧠ANSWER ✔✔Highest and Best Use
The present value of a property is affected by the anticipated income or utility that
property will give to the property owner - 🧠ANSWER ✔✔Principle of Anticipation
A property's overall value is made of the combined value of each of its parts -
🧠ANSWER ✔✔Principle of Contribution
The value of something is effected by the cost of getting a similar (substitute) item
elsewhere - 🧠ANSWER ✔✔Principle of Substitution
The condition of a property, the desirability of its location, and the market in which
it exists can always change - 🧠ANSWER ✔✔Principle of Change
Values are the highest when houses in a neighborhood look roughly the same -
🧠ANSWER ✔✔Principle of Conformity
Lower value properties surrounding a subject property are can drag down the value
of a property - 🧠ANSWER ✔✔Principle of Regression
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, 4
Higher value properties of a subject property can bump of the value of a property -
🧠ANSWER ✔✔Principle of Progression
Determining value by comparing the subject property to similar properties
("comps") that have sold recently. It's most commonly used for single family
residences. - 🧠ANSWER ✔✔Sales Comparison Approach
Determining value by considering how much the same property would cost to
build brand new at current prices (replacement cost), then adjusting for
depreciation - 🧠ANSWER ✔✔Cost Approach
Determining value by considering how much income the property would generate
when used as rental property - 🧠ANSWER ✔✔Income Approach
The loss of value because of obsolescence or deterioration - 🧠ANSWER
✔✔Depreciation
Loss of value because a property's function or appearance has gone out of style or
has been replaced by a more appealing version - 🧠ANSWER ✔✔Functional
Obsolescence
Loss of value caused by negative forces outside the property which are beyond the
control of the owner (unfavorable changes in the environment or market) -
🧠ANSWER ✔✔External Obsolescence
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
Aceable Agent Principles of Real Estate
2 (2025) Comprehensive Questions and
Verified Answers (elaborated) get it
100% Accurate!!
The repayment of a loan principle over time - 🧠ANSWER ✔✔Amortization
Payment for an item or service after it's received - 🧠ANSWER ✔✔Arrears
The initial payment made when buying something on credit, a ____________ is
paid directly by the buyer to the seller - 🧠ANSWER ✔✔Down Payment
The allocation or distribution of an annual expense across smaller chunks of time -
🧠ANSWER ✔✔Proration
A unit of measurement used to determine the size of land; 1 acre = 43560 square
feet - 🧠ANSWER ✔✔Acreage
The value of property, based on factors determined by a certified appraiser -
🧠ANSWER ✔✔Appraisal
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, 2
Information about the area surrounding a property, this could include the city,
region, and neighborhood in which the property is situated - 🧠ANSWER
✔✔General data
Information regarding the property itself - 🧠ANSWER ✔✔Specific Data
A simple, abbreviated version of a regular appraisal - 🧠ANSWER ✔✔Limited
Appraisal
The price for which a property would sell if offered openly under normal
conditions. This refers to the economic principle, it's the price that a buyer and
seller would probably accept - 🧠ANSWER ✔✔Market Value
Refers to the value given by a licensed appraiser during the mortgage origination
process. Appraisers are chosen by the lender but paid for by the homebuyer. -
🧠ANSWER ✔✔Appraised Value
Refers to the value placed on a property by a governmental unit for use in levying
annual real estate taxes - 🧠ANSWER ✔✔Assessed Value
The limit on the value of a loan, usually a certain percentage of the home's
appraised value or sales price, whichever is lower - 🧠ANSWER ✔✔Loan-to-Value
Ratio (LTV)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
, 3
The property that is being evaluated in any given appraisal - 🧠ANSWER
✔✔Subject Property
What is achieved when a property is used for the most appropriate purpose with
the highest returns - 🧠ANSWER ✔✔Highest and Best Use
The present value of a property is affected by the anticipated income or utility that
property will give to the property owner - 🧠ANSWER ✔✔Principle of Anticipation
A property's overall value is made of the combined value of each of its parts -
🧠ANSWER ✔✔Principle of Contribution
The value of something is effected by the cost of getting a similar (substitute) item
elsewhere - 🧠ANSWER ✔✔Principle of Substitution
The condition of a property, the desirability of its location, and the market in which
it exists can always change - 🧠ANSWER ✔✔Principle of Change
Values are the highest when houses in a neighborhood look roughly the same -
🧠ANSWER ✔✔Principle of Conformity
Lower value properties surrounding a subject property are can drag down the value
of a property - 🧠ANSWER ✔✔Principle of Regression
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, 4
Higher value properties of a subject property can bump of the value of a property -
🧠ANSWER ✔✔Principle of Progression
Determining value by comparing the subject property to similar properties
("comps") that have sold recently. It's most commonly used for single family
residences. - 🧠ANSWER ✔✔Sales Comparison Approach
Determining value by considering how much the same property would cost to
build brand new at current prices (replacement cost), then adjusting for
depreciation - 🧠ANSWER ✔✔Cost Approach
Determining value by considering how much income the property would generate
when used as rental property - 🧠ANSWER ✔✔Income Approach
The loss of value because of obsolescence or deterioration - 🧠ANSWER
✔✔Depreciation
Loss of value because a property's function or appearance has gone out of style or
has been replaced by a more appealing version - 🧠ANSWER ✔✔Functional
Obsolescence
Loss of value caused by negative forces outside the property which are beyond the
control of the owner (unfavorable changes in the environment or market) -
🧠ANSWER ✔✔External Obsolescence
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
