Champions Principles of Real Estate 2 (2025) EXAM
QUESTIONS AND ALL CORRECT ANSWERS 100%
SOLVED AND GUARANTEED SUCCESS!!
Terms in this set (91)
value of a property maybe affected by social, economic, govt and
appraisal
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 Must be certified licence holders and is mandated by the SAFE
Originators (RMLO) ACT (TX dept of savings and mortgage lending)
, Principle of Anticipation purchase price is affected by the expectation of future appeal and benefits
value of a commodity is influenced by the cost of acquiring
Principal of Substitution
subsitute or comparable item
Principal of progression value of properties around yours goes up; so does yours
The Value of more expensive home placed in a neighborhood of
Principal of Regression
less expensive homes will drop in value
the most probable price a property should bring in a
Market Value
competitive and open market under fair conditions requisit to
a fair sale.
The value of a property may be affected by social, economic, governmental
appraisal process and
environmental influences. An appraiser must always be aware of
these influences and possible changes in them that could affect
market value.
(1) The Sales Comparison Approach
Three approaches to value (2) The Cost Approach,
(3)The Income Approach.
A value for existing properties method for comparing similar
Sales Comparison Approach
properties to the subject property. this is the best indicator.
Market Data Approach aka: sales comparison approach
Loss of value of a building from its reproduction cost, resulting
Physical Deterioration
from wear and tear over time.
Functional Obsolescence loss of desirability of the style, layout or function of an element of
property over time
Losses of property value caused by forces or conditions
External Obsolescence
beyond the borders of the property. ie. zoning, highways
promissary note evidence of a lean. simply a note
Foreclosure secured property may be sold ti satisfy the unpaid promissory note.
Primary Mortgage Market the loan origination market where borrowers and lenders negotiate
mortgage terms
funding transferring funds to a title co for disbursement when loan is approved.
The process of collecting loan monthly payments, keeping
Servicing
records and balances, collecting and paying taxes and
insurance
federal law passed in 1974. doesn't include: gender or
Equal Credit Opportunity Act
immigration status. consumers are given equal chance to
obtain credit.
secondary market exists for the purchase and sale of existing mortgages to investors
QUESTIONS AND ALL CORRECT ANSWERS 100%
SOLVED AND GUARANTEED SUCCESS!!
Terms in this set (91)
value of a property maybe affected by social, economic, govt and
appraisal
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 Must be certified licence holders and is mandated by the SAFE
Originators (RMLO) ACT (TX dept of savings and mortgage lending)
, Principle of Anticipation purchase price is affected by the expectation of future appeal and benefits
value of a commodity is influenced by the cost of acquiring
Principal of Substitution
subsitute or comparable item
Principal of progression value of properties around yours goes up; so does yours
The Value of more expensive home placed in a neighborhood of
Principal of Regression
less expensive homes will drop in value
the most probable price a property should bring in a
Market Value
competitive and open market under fair conditions requisit to
a fair sale.
The value of a property may be affected by social, economic, governmental
appraisal process and
environmental influences. An appraiser must always be aware of
these influences and possible changes in them that could affect
market value.
(1) The Sales Comparison Approach
Three approaches to value (2) The Cost Approach,
(3)The Income Approach.
A value for existing properties method for comparing similar
Sales Comparison Approach
properties to the subject property. this is the best indicator.
Market Data Approach aka: sales comparison approach
Loss of value of a building from its reproduction cost, resulting
Physical Deterioration
from wear and tear over time.
Functional Obsolescence loss of desirability of the style, layout or function of an element of
property over time
Losses of property value caused by forces or conditions
External Obsolescence
beyond the borders of the property. ie. zoning, highways
promissary note evidence of a lean. simply a note
Foreclosure secured property may be sold ti satisfy the unpaid promissory note.
Primary Mortgage Market the loan origination market where borrowers and lenders negotiate
mortgage terms
funding transferring funds to a title co for disbursement when loan is approved.
The process of collecting loan monthly payments, keeping
Servicing
records and balances, collecting and paying taxes and
insurance
federal law passed in 1974. doesn't include: gender or
Equal Credit Opportunity Act
immigration status. consumers are given equal chance to
obtain credit.
secondary market exists for the purchase and sale of existing mortgages to investors
