IAAO 102 EXAM PREP/IAAO 102 EXAM PRACTICE ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS|A+ GRADE 2026
Anticipation - Value is created by the expectation of benefits to be derived in the future
Substitution - the prices, rents, and rates of return of property tend to be set by the current
prices, rents and rates of return for equally desire able substitute properties.
Contribution - the value of a component of real estate can be measured by the amount it
contributes to net operating income because net operating income can be capitalized into
value.
Market Value - means the most probable price which a property should bring in a competitive
and open market under all conditions.
5 Analysis Questions for Investors - - 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Leverage - borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds. This amount can be be negative, positive, or neutral.
Mortgage - most common type of financing for real estate.
Junior Mortgage - typical a second mortgage
Chattel Mortgage - a mortgage only on personal property.
QUESTIONS AND CORRECT DETAILED ANSWERS|A+ GRADE 2026
Anticipation - Value is created by the expectation of benefits to be derived in the future
Substitution - the prices, rents, and rates of return of property tend to be set by the current
prices, rents and rates of return for equally desire able substitute properties.
Contribution - the value of a component of real estate can be measured by the amount it
contributes to net operating income because net operating income can be capitalized into
value.
Market Value - means the most probable price which a property should bring in a competitive
and open market under all conditions.
5 Analysis Questions for Investors - - 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Leverage - borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds. This amount can be be negative, positive, or neutral.
Mortgage - most common type of financing for real estate.
Junior Mortgage - typical a second mortgage
Chattel Mortgage - a mortgage only on personal property.
