IAAO 101 Exam Questions with Correct Answers| Latest Update Guaranteed Success
Basic responsibilities of tax assessors Discover, List, and Value
What are the rights of ownership? Bundle of rights Sell, Lease, Use, Give away, Enter or
Leave, Right to not do anything. (S.L.U.G.E.R.)
What are the Government restrictions placed on bundle of rights? T.E.P.E. Taxation,
Eminent domain, police power, escheat
In order for a property to have value, it must have? Utility, scarcity, desirability, and
purchasing power.
Anticipation Present worth of future benefits.
Balance Maximum value is obtained when the four agents of production attain a state of
equilibrium.
Change The tendency of social economic forces affecting supply and demand to shift over
time
Competition Availability must be in harmony with demand. If one or the other is in excess,
prices will increase or decrease.
Conformity The value of property depends, in part, on its relationship to its surroundings.
Consistent Use Market value of a property tends to be set by the cost of acquiring an equally
desirable and valuable property.
, Contribution The value for a component of property depends on its contribution to the
whole.
Increasing/Decreasing Returns After a certain point, the addition of successive increments of
one agent of production decreases future incomes or amenities.
Progression / Regression The value of a lower priced property is increased by its association
with better properties of the same type and vice versa.
Substitution Market value of a property tends to be set by the cost of acquiring an equally
desirable and valuable property.
Surplus Productivity Net income remaining after the costs of labor, management, and
capital have been paid
Supply The amount of goods that producers are willing to sell under various conditions
during a given period.
Demand Quantities of various goods that people are willing and able to buy during some
period, given the choices available to them.
What is highest and best use? The use that generates the highest net return to the property
over a reasonable time period.
What is the criteria for highest and best use? Must be legally permissible, physically
possible, financially feasible, and maximally productive.
What are the 7 steps of the appraisal process? Define the problem, scope of work,
preliminary survey and analysis, data collection and analysis, highest and best use, application
of approach(es), reconciliation.
Basic responsibilities of tax assessors Discover, List, and Value
What are the rights of ownership? Bundle of rights Sell, Lease, Use, Give away, Enter or
Leave, Right to not do anything. (S.L.U.G.E.R.)
What are the Government restrictions placed on bundle of rights? T.E.P.E. Taxation,
Eminent domain, police power, escheat
In order for a property to have value, it must have? Utility, scarcity, desirability, and
purchasing power.
Anticipation Present worth of future benefits.
Balance Maximum value is obtained when the four agents of production attain a state of
equilibrium.
Change The tendency of social economic forces affecting supply and demand to shift over
time
Competition Availability must be in harmony with demand. If one or the other is in excess,
prices will increase or decrease.
Conformity The value of property depends, in part, on its relationship to its surroundings.
Consistent Use Market value of a property tends to be set by the cost of acquiring an equally
desirable and valuable property.
, Contribution The value for a component of property depends on its contribution to the
whole.
Increasing/Decreasing Returns After a certain point, the addition of successive increments of
one agent of production decreases future incomes or amenities.
Progression / Regression The value of a lower priced property is increased by its association
with better properties of the same type and vice versa.
Substitution Market value of a property tends to be set by the cost of acquiring an equally
desirable and valuable property.
Surplus Productivity Net income remaining after the costs of labor, management, and
capital have been paid
Supply The amount of goods that producers are willing to sell under various conditions
during a given period.
Demand Quantities of various goods that people are willing and able to buy during some
period, given the choices available to them.
What is highest and best use? The use that generates the highest net return to the property
over a reasonable time period.
What is the criteria for highest and best use? Must be legally permissible, physically
possible, financially feasible, and maximally productive.
What are the 7 steps of the appraisal process? Define the problem, scope of work,
preliminary survey and analysis, data collection and analysis, highest and best use, application
of approach(es), reconciliation.
