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Principles of Real Estate 2 Champions School of Real Estate Exam 2023 $12.49   Add to cart

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Principles of Real Estate 2 Champions School of Real Estate Exam 2023

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Principles of Real Estate 2 Champions School of Real Estate Exam 2023...

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  • March 21, 2023
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  • 2022/2023
  • Exam (elaborations)
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  • Principles of Real Estate 2 Champions School
  • Principles of Real Estate 2 Champions School

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By: sbest1313 • 8 months ago

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Principles of Real Estate 2 Champions School of Real
Estate Exam 2023


appraisal - ANSWER appraisers opinion of value

principal of contribution - ANSWER the value if the property is equal to the sum if the
contributory value of each of its component parts.

loan to value ratio - ANSWER percentage of value or sales price that a lender is willing
to finance.

desk review - ANSWER goes through items as they analyze the appraisal report for
completeness and acceptable conclusions

field review - ANSWER independent 3rd party appraiser will be contracted to review
the appraisal report then verify the accuracy

limited appraisal - ANSWER exterior only/ drive by inspection (low risk loans)

subject property - ANSWER property being appraised

highest and best use - ANSWER gives greatest return in money or amenities

principle of change - ANSWER forces acting on the parcel of land are always affecting
the value of the land.

principle of anticipation - ANSWER purchase price is affected by the expectation of of
future appeal and benefits.

principle of substitution - ANSWER value of a commodity is influenced by the cost of
acquiring a substitute or a comparable item.

principle of conformity - ANSWER maximized value when homogeneity in
neighborhood

principle of increasing and decreasing returns - ANSWER value added to improvement
exceeds the cost of improvement.

principle of supply and demand - ANSWER supply is short, prices go up. high supply,
low demand, prices go down

principle of regression - ANSWER presence of lower priced properties in the area will
cause a decline in the value of a subject property

principle of competition - ANSWER completion causes prices to increase

,market value - ANSWER most reasonable price a property should bring in a
competitive open market.

ad valorem - ANSWER according to value

depreciation - ANSWER loss in value due to any cause

assessed value - ANSWER for tax purposes- determined by tax authority- not reliable
estimate of market value

chronological age - ANSWER physical number of years

sales comparison approach "market data approach" - ANSWER compares subject
property charectoristcs with those of comparable properties which have recently sold

functional obsolescence - ANSWER loss in value by factors outside

sales comparison - ANSWER price a wiling seller will sell for & price willing buyer will
buy.

cost approach to value - ANSWER estimate of value based on current construction
costs. less depreciation, plus land value.

effective age - ANSWER age of structure based off observed physical condition
determined by the degree of maintenance and repair

uspap - ANSWER uniform standards of appraisal practice- established by appraisal
foundation



urar - ANSWER uniform residential appraisal report aka fannie mae form 1004, Freddie
mac form 70.

principle of progression - ANSWER value of subject property is increased by value of
surrounding properties

net adjustment - ANSWER absolute adjustments made to the comparable, considering
those that are +/-

gross adjustments - ANSWER sum of all adjustments.

gross rent multiplier - ANSWER grm= sales price/ monthly rent

net income - ANSWER gross income- expenses

ivr(income, return on investment, value) - ANSWER if similar properties in the market
are selling at prices that yield and investor a return of x%

, potential rate of return(income, return on investment, value) - ANSWER r=I/v

certain rate of return (income, return on investment, value) - ANSWER I=v*r

pud- planned unit development - ANSWER subdivision that includes locally owned
commodities and common facilities

mortgagor - ANSWER the borrower

mortgagee - ANSWER the lender

promissory note (real estate lien note) - ANSWER unconditional promise to pay

mortgage - ANSWER document that pledges the property as security for repayment of
the note.

foreclosure - ANSWER legal procedure where secured property is sold to pay unpaid
note.

REO- real estate owned - ANSWER foreclosed property

title theory - ANSWER mortgage is a transfer of owner ship

lien theory - ANSWER borrower retains ownership, but is subject to the lein

primary mortgage market - ANSWER borrowers and lenders come to negotiate.

bonds - ANSWER fixed income investment- money mortgage companies use to make
loans

warehouse line of credit - ANSWER mortgage notes repaid by sale of notes through
the secondary market

mortgage banker - ANSWER source of residential loans

mortgage broker - ANSWER source of commercial loans

correspondent lender - ANSWER hybrid of commercial and residential loans

underwriting - ANSWER evaluating borrowers loan application to determine risk

processing - ANSWER file built on credit information and to be used in underwriting

servicing - ANSWER sending monthly payment statements, and collecting monthly
payments, maintaining records and balances.



SAFE act - ANSWER secure and fair enforcement for mortgage licensing-enhance

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