IAAO 101 PRACTICE TESTS QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
List the four tests that the appraiser must make in the analysis of the highest and best use. - (ANSWER)1.
Legally Permissible
2. Physically Possible
3. Financially Feasible
4. Most Productive
_______ ________ is a parcel of land and any structures or improvements that are permanently affixed
thereto. - (ANSWER)Real Estate
Property is considered ________ if it can be moved without causing any damage or change to either the
item of property or the structure to which it is attached. - (ANSWER)Personal
Assessment level times the tax rate equals the ________ ______ ______. - (ANSWER)Effective Tax Rate
The property tax is a/an ____ _______ tax, meaning it is based on the value. - (ANSWER)Ad Volorem
The assessor is responsible for the _______, ________, and __________ of all taxable property. -
(ANSWER)Discovery, Listing, Valuation
The taxable location of personal property is referred to as its ________. - (ANSWER)Situs
An estimate of value, usually in writing, of an adequately described property, as of a given date, is
termed a/an _______________. - (ANSWER)Appraisal
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from the property
tax by the ________ ____________ _______ of the taxing jursidiction. - (ANSWER)Revenue or
Budget/Total Assessed Value
The type of value usually estimated by the assessor is __________ value. - (ANSWER)Market
,IAAO 101 PRACTICE TESTS QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
The ____________ ____ _______ reflects the ratio between the current tax bill and the property value. -
(ANSWER)Effective Tax Rate
In order for a property to have value, it must have __________, ___________, ________________, and
______________ _____________ __________. - (ANSWER)Utility, Scarcity, Desirability, Effective
Purchasing Power
The use that generates the highest net return to a property over a reasonable time period is called its
__________ ___ _____ ___. - (ANSWER)Highest and Best Use
The principle of _______ states that maximum value of a neighborhood is attained when the uses of
land are perfectly complementary. - (ANSWER)Balance
Which appraisal principle affirms that land cannot be valued on the basis of one use while improvements
are valued on the basis of another? - (ANSWER)Consistent Use
_____________ is the point at which the forces of supply and forces of demand meet. -
(ANSWER)Equilibrium
List the two types of highest and best use analysis. - (ANSWER)1. As If Vacant
2. As If Improved
The typical life cycle of a neighborhood includes ______, ________, _________, and _____________. -
(ANSWER)Growth, Stability, Decline, Revitalization
What elements of the marketplace are most likely to contribute to a change in demand? - (ANSWER)1.
Consumer Taste/Preferences
2. Consumer Income
3. Price of Related Commodities
4. Consumer Expectations
, IAAO 101 PRACTICE TESTS QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
5. Price of the Commodity
Market value is defined as the most probable price of a property in terms of money, assuming
A. Buyer and seller are typically motivated.
B. A reasonable time is allowed for exposure in the open market.
C. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable
thereto.
D. All of the above - (ANSWER)D. All of the above
_______ refers to the amount of goods that producers are willing to sell at a given price during a
specified time period. - (ANSWER)Supply
Ownership of all legal rights to property is limited by government in four ways: - (ANSWER)1. Taxation
2. Eminent Domain
3. Police Power
4. Escheat
The seven steps of the appraisal process are: - (ANSWER)1. Definition of the Problem
2. Scope of Work
3. Preliminary Survey & Analysis
4. Data Collection & Analysis
5. Highest & Best Use Analysis
6. Application of Data & Approaches
7. Correlation/Reconciliation to Final Value
The basis for the adjustments in the sales comparison approach to value is the principle of
______________. - (ANSWER)Contribution
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
List the four tests that the appraiser must make in the analysis of the highest and best use. - (ANSWER)1.
Legally Permissible
2. Physically Possible
3. Financially Feasible
4. Most Productive
_______ ________ is a parcel of land and any structures or improvements that are permanently affixed
thereto. - (ANSWER)Real Estate
Property is considered ________ if it can be moved without causing any damage or change to either the
item of property or the structure to which it is attached. - (ANSWER)Personal
Assessment level times the tax rate equals the ________ ______ ______. - (ANSWER)Effective Tax Rate
The property tax is a/an ____ _______ tax, meaning it is based on the value. - (ANSWER)Ad Volorem
The assessor is responsible for the _______, ________, and __________ of all taxable property. -
(ANSWER)Discovery, Listing, Valuation
The taxable location of personal property is referred to as its ________. - (ANSWER)Situs
An estimate of value, usually in writing, of an adequately described property, as of a given date, is
termed a/an _______________. - (ANSWER)Appraisal
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from the property
tax by the ________ ____________ _______ of the taxing jursidiction. - (ANSWER)Revenue or
Budget/Total Assessed Value
The type of value usually estimated by the assessor is __________ value. - (ANSWER)Market
,IAAO 101 PRACTICE TESTS QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
The ____________ ____ _______ reflects the ratio between the current tax bill and the property value. -
(ANSWER)Effective Tax Rate
In order for a property to have value, it must have __________, ___________, ________________, and
______________ _____________ __________. - (ANSWER)Utility, Scarcity, Desirability, Effective
Purchasing Power
The use that generates the highest net return to a property over a reasonable time period is called its
__________ ___ _____ ___. - (ANSWER)Highest and Best Use
The principle of _______ states that maximum value of a neighborhood is attained when the uses of
land are perfectly complementary. - (ANSWER)Balance
Which appraisal principle affirms that land cannot be valued on the basis of one use while improvements
are valued on the basis of another? - (ANSWER)Consistent Use
_____________ is the point at which the forces of supply and forces of demand meet. -
(ANSWER)Equilibrium
List the two types of highest and best use analysis. - (ANSWER)1. As If Vacant
2. As If Improved
The typical life cycle of a neighborhood includes ______, ________, _________, and _____________. -
(ANSWER)Growth, Stability, Decline, Revitalization
What elements of the marketplace are most likely to contribute to a change in demand? - (ANSWER)1.
Consumer Taste/Preferences
2. Consumer Income
3. Price of Related Commodities
4. Consumer Expectations
, IAAO 101 PRACTICE TESTS QUESTIONS AND CORRECT ANSWERS
100% VERIFIED!!! LATEST UPDATE ALREADY GRADED A+
5. Price of the Commodity
Market value is defined as the most probable price of a property in terms of money, assuming
A. Buyer and seller are typically motivated.
B. A reasonable time is allowed for exposure in the open market.
C. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable
thereto.
D. All of the above - (ANSWER)D. All of the above
_______ refers to the amount of goods that producers are willing to sell at a given price during a
specified time period. - (ANSWER)Supply
Ownership of all legal rights to property is limited by government in four ways: - (ANSWER)1. Taxation
2. Eminent Domain
3. Police Power
4. Escheat
The seven steps of the appraisal process are: - (ANSWER)1. Definition of the Problem
2. Scope of Work
3. Preliminary Survey & Analysis
4. Data Collection & Analysis
5. Highest & Best Use Analysis
6. Application of Data & Approaches
7. Correlation/Reconciliation to Final Value
The basis for the adjustments in the sales comparison approach to value is the principle of
______________. - (ANSWER)Contribution
