TN Real Estate Principles Unit 18 Flashcards

TN Real Estate Principles Unit 18 Flashcards Change, contribution, plottage, and substitution are some of the basic principles that affect what aspect of real estate?A)SupplyB)DepreciationC)DemandD)Value D A broker price opinion (BPO) should not be confused with an appraisal, which consists of a more in-depth analysis of gathered information andA)which may be performed by the broker under the supervision of a licensed appraiser.B)which requires more work by the broker.C)which may be performed only by a licensed appraiser.D)for which the broker charges more.C The data collected by the appraiser for the appraisal process includesA)selective data and variable data.B)general data and specific data.C)general data and selective data.D)specific data and variable data.B An appraisal used in connection with a federally related transaction must be performed by a competent individual whose professional conduct is subject to supervision and regulation under theA)Fair Housing Act.B)regulations established by the Department of Housing and Urban Development.C)Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).D)Equal Credit Opportunity Act (ECOA).C Which principle of value indicates that a developer's very profitable real estate project will attract others to engage in similar activity in the same area and thus drive down profits?A)ProgressionB)ValueC)CompetitionD)Anticipation C A federally related transaction is any real estate-related financial transactionA)involving only FHA or VA financing.B)involving only FHA financing.C)in which a federal financial institution or regulatory agency is engaged.D)involving only a federally chartered bank or savings institution.C There are two vacant adjacent lots, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000.What principle does this illustrate?A)PlottageB)ProgressionC)SubstitutionD)Regress ion A Capitalization is the process by which annual net operating income is used toA)determine cost.B)estimate value.C)establish depreciation.D)determine potential tax

value.B BPO stands forA)buyer's price opinion.B)broker property opinion.C)broker price opinion.D)buyer's property opinion.C