IAAO 101 Practice Questions with Correct
Answers
Ad Valorem
tax based on value
Demand
Quantities of various goods that people are willing and able to buy during some period, given
the choices available to them
1. Discovery
2. Listing
3. Valuation
The assessor is responsible for
1. Physical
2. Economic
3. Governmental
4. Social
The 4 factors affecting land values:
Situs
The taxable location of personal property
Surplus Productivity
this principle states that returns to land are what remain after returns to labor, management, &
capital are satisfied
,Appraisal
An estimate of value, usually in writing, of an adequately described property, as of a given
date.
6 methods of land valuation
1. Direct sales comparison
2. Allocation
3. Abstraction
4. Anticipated use or development
5. Capitalization of ground rent
6. Land residual technique
Tax Rate
Budget ÷ Assessed valuation
Cadastral
A complete set of these maps shows boundaries, parcel size, sales information, and other
relevant features of all parcels in a jurisdiction is a necessary tool for assessors
Market
The type of value usually estimated by the assessor
Metes & Bounds
the practice of measuring the direction of property lines with compass bearings and the
distance with measuring chains or tapes in order to obtain a property description
Effective Tax Rate
reflects the ratio between the current tax bill and the property value
,36 sections & 640 acres
A township in the Public Land Survey System contains how many sections, and each section
contains how many acres
1. utility
2. scarcity
3. desirability
4. effective purchasing power
In order for a property to have value it must have
Stratified
When land is valued by using the direct sales comparison approach, sales must first be what,
into homogeneous groups
Highest and Best Use
The use that generates the highest net return to a property over a reasonable time period is
called its
Off Site
Improvements such as streets, sidewalks, and the availability of utilities are what type of
improvements
Balance
The principle that states that maximum value of a neighborhood is attained when the uses of
land are perfectly complementary
Direct Sales Comparison
, This method of land valuation compares the property being appraised to comparable vacant
parcels that have recently sold
Consistent Use
This appraisal principle affirms that land cannot be valued on the basis of one use while
improvements are valued on the basis of another
Unit of Comparison
Front foot, Square foot, & Acre are all examples of this
1. Legally permissible
2. Physically possible
3. Financially feasible
4. Most productive
What are the 4 tests that the appraiser must make in the analysis of the highest and best use
Comparable - Subject
In the direct sales comparison approach to land valuation, adjustments are always made to
these properties and never to these properties.
Real Estate
a parcel of land and any structure or improvements that are permanently affixed to it
Negative
if a comparable lot that sold is Superior in some aspect to the subject lot, a (positive or
negative) adjustment would be made to the comparable property.
Personal
Answers
Ad Valorem
tax based on value
Demand
Quantities of various goods that people are willing and able to buy during some period, given
the choices available to them
1. Discovery
2. Listing
3. Valuation
The assessor is responsible for
1. Physical
2. Economic
3. Governmental
4. Social
The 4 factors affecting land values:
Situs
The taxable location of personal property
Surplus Productivity
this principle states that returns to land are what remain after returns to labor, management, &
capital are satisfied
,Appraisal
An estimate of value, usually in writing, of an adequately described property, as of a given
date.
6 methods of land valuation
1. Direct sales comparison
2. Allocation
3. Abstraction
4. Anticipated use or development
5. Capitalization of ground rent
6. Land residual technique
Tax Rate
Budget ÷ Assessed valuation
Cadastral
A complete set of these maps shows boundaries, parcel size, sales information, and other
relevant features of all parcels in a jurisdiction is a necessary tool for assessors
Market
The type of value usually estimated by the assessor
Metes & Bounds
the practice of measuring the direction of property lines with compass bearings and the
distance with measuring chains or tapes in order to obtain a property description
Effective Tax Rate
reflects the ratio between the current tax bill and the property value
,36 sections & 640 acres
A township in the Public Land Survey System contains how many sections, and each section
contains how many acres
1. utility
2. scarcity
3. desirability
4. effective purchasing power
In order for a property to have value it must have
Stratified
When land is valued by using the direct sales comparison approach, sales must first be what,
into homogeneous groups
Highest and Best Use
The use that generates the highest net return to a property over a reasonable time period is
called its
Off Site
Improvements such as streets, sidewalks, and the availability of utilities are what type of
improvements
Balance
The principle that states that maximum value of a neighborhood is attained when the uses of
land are perfectly complementary
Direct Sales Comparison
, This method of land valuation compares the property being appraised to comparable vacant
parcels that have recently sold
Consistent Use
This appraisal principle affirms that land cannot be valued on the basis of one use while
improvements are valued on the basis of another
Unit of Comparison
Front foot, Square foot, & Acre are all examples of this
1. Legally permissible
2. Physically possible
3. Financially feasible
4. Most productive
What are the 4 tests that the appraiser must make in the analysis of the highest and best use
Comparable - Subject
In the direct sales comparison approach to land valuation, adjustments are always made to
these properties and never to these properties.
Real Estate
a parcel of land and any structure or improvements that are permanently affixed to it
Negative
if a comparable lot that sold is Superior in some aspect to the subject lot, a (positive or
negative) adjustment would be made to the comparable property.
Personal
