Aceable Agent Principles of Real Estate2
Exam Questions and Answers ()
| 100% Correct Verified Answers Graded A+
Amortization - CORRECT>> The repayment of a loan principle over time
Arrears - CORRECT>> Payment for an item or service after it's received
Down Payment - CORRECT>> The initial payment made when buying something on
credit, a
is paid directly by the buyer to the seller
Proration - CORRECT>> The allocation or distribution of an annual expense across
smaller chunks of time
Acreage - CORRECT>> A unit of measurement used to determine the size of land; 1
acre =43560 square feet
Appraisal - CORRECT>> The value of property, based on factors determined by a
certifiedappraiser
General data - CORRECT>> Information about the area surrounding a property, this
couldinclude the city, region, and neighborhood in which the property is situated
Specific Data - CORRECT>> Information regarding the property itself
Limited Appraisal - CORRECT>> A simple, abbreviated version of a regular appraisal
Market Value - CORRECT>> The price for which a property would sell if offered openly
undernormal conditions. This refers to the economic principle, it's the price that a buyer
and seller would probably accept
Appraised Value - CORRECT>> Refers to the value given by a licensed appraiser
during themortgage origination process. Appraisers are chosen by the lender but paid
for by the homebuyer.
Assessed Value - CORRECT>> Refers to the value placed on a property by a
governmentalunit for use in levying annual real estate taxes
Loan-to-Value Ratio (LTV) - CORRECT>> The limit on the value of a loan, usually a
,certainpercentage of the home's appraised value or sales price, whichever is lower
, Subject Property - CORRECT>> The property that is being evaluated in any given
appraisal
Highest and Best Use - CORRECT>> What is achieved when a property is used for the
mostappropriate purpose with the highest returns
Principle of Anticipation - CORRECT>> The present value of a property is affected by the
anticipated income or utility that property will give to the property owner
Principle of Contribution - CORRECT>> A property's overall value is made of the
combined value of each of its parts
Principle of Substitution - CORRECT>> The value of something is effected by the cost of
getting a similar (substitute) item elsewhere
Principle of Change - CORRECT>> The condition of a property, the desirability of its
location,and the market in which it exists can always change
Principle of Conformity - CORRECT>> Values are the highest when houses in a
neighborhood look roughly the same
Principle of Regression - CORRECT>> Lower value properties surrounding a
subjectproperty are can drag down the value of a property
Principle of Progression - CORRECT>> Higher value properties of a subject
property canbump of the value of a property
Sales Comparison Approach - CORRECT>> Determining value by comparing the
subjectproperty to similar properties ("comps") that have sold recently. It's most
commonly used for single family residences.
Cost Approach - CORRECT>> Determining value by considering how much the
sameproperty would cost to build brand new at current prices (replacement cost),
thenadjusting for depreciation
Income Approach - CORRECT>> Determining value by considering how much income
theproperty would generate when used as rental property
Depreciation - CORRECT>> The loss of value because of obsolescence or deterioration
Functional Obsolescence - CORRECT>> Loss of value because a property's function or
appearance has gone out of style or has been replaced by a more appealing version
External Obsolescence - CORRECT>> Loss of value caused by negative forces outside
theproperty which are beyond the control of the owner (unfavorable changes in the
environment or market)
Exam Questions and Answers ()
| 100% Correct Verified Answers Graded A+
Amortization - CORRECT>> The repayment of a loan principle over time
Arrears - CORRECT>> Payment for an item or service after it's received
Down Payment - CORRECT>> The initial payment made when buying something on
credit, a
is paid directly by the buyer to the seller
Proration - CORRECT>> The allocation or distribution of an annual expense across
smaller chunks of time
Acreage - CORRECT>> A unit of measurement used to determine the size of land; 1
acre =43560 square feet
Appraisal - CORRECT>> The value of property, based on factors determined by a
certifiedappraiser
General data - CORRECT>> Information about the area surrounding a property, this
couldinclude the city, region, and neighborhood in which the property is situated
Specific Data - CORRECT>> Information regarding the property itself
Limited Appraisal - CORRECT>> A simple, abbreviated version of a regular appraisal
Market Value - CORRECT>> The price for which a property would sell if offered openly
undernormal conditions. This refers to the economic principle, it's the price that a buyer
and seller would probably accept
Appraised Value - CORRECT>> Refers to the value given by a licensed appraiser
during themortgage origination process. Appraisers are chosen by the lender but paid
for by the homebuyer.
Assessed Value - CORRECT>> Refers to the value placed on a property by a
governmentalunit for use in levying annual real estate taxes
Loan-to-Value Ratio (LTV) - CORRECT>> The limit on the value of a loan, usually a
,certainpercentage of the home's appraised value or sales price, whichever is lower
, Subject Property - CORRECT>> The property that is being evaluated in any given
appraisal
Highest and Best Use - CORRECT>> What is achieved when a property is used for the
mostappropriate purpose with the highest returns
Principle of Anticipation - CORRECT>> The present value of a property is affected by the
anticipated income or utility that property will give to the property owner
Principle of Contribution - CORRECT>> A property's overall value is made of the
combined value of each of its parts
Principle of Substitution - CORRECT>> The value of something is effected by the cost of
getting a similar (substitute) item elsewhere
Principle of Change - CORRECT>> The condition of a property, the desirability of its
location,and the market in which it exists can always change
Principle of Conformity - CORRECT>> Values are the highest when houses in a
neighborhood look roughly the same
Principle of Regression - CORRECT>> Lower value properties surrounding a
subjectproperty are can drag down the value of a property
Principle of Progression - CORRECT>> Higher value properties of a subject
property canbump of the value of a property
Sales Comparison Approach - CORRECT>> Determining value by comparing the
subjectproperty to similar properties ("comps") that have sold recently. It's most
commonly used for single family residences.
Cost Approach - CORRECT>> Determining value by considering how much the
sameproperty would cost to build brand new at current prices (replacement cost),
thenadjusting for depreciation
Income Approach - CORRECT>> Determining value by considering how much income
theproperty would generate when used as rental property
Depreciation - CORRECT>> The loss of value because of obsolescence or deterioration
Functional Obsolescence - CORRECT>> Loss of value because a property's function or
appearance has gone out of style or has been replaced by a more appealing version
External Obsolescence - CORRECT>> Loss of value caused by negative forces outside
theproperty which are beyond the control of the owner (unfavorable changes in the
environment or market)
