IAAO - COURSE 101 QUESTIONS AND ANSWERS
Discover
List
Value taxable property - Answers- Basic appraiser responsibilities
Standard 6: Scope of Work - Answers- USPAP standard for appraisal practice
ad valorem tax - Answers- Property tax based on value
Tax Rate (formula) - Answers- Budget (minus other revenue) / Assessed Value of
Jurisdiction
Tax Bill (formula) - Answers- Tax Rate x Ind. Property Assessed Value
Assessed Value (AV) formula - Answers- Assessment Ratio (AR) x Market Value (MV)
Property Tax Revenue (formula) - Answers- Budget minus other revenue
ETR (Effective Tax Rate) - Answers- Reflects the ratio between the current tax bill and
the property value.
ETR formula - Answers- A (assessment ratio) x T (tax rate)
Real Property - Answers- Interests, benefits, and rights associated with real estate
ownership
Real Estate - Answers- land and anything that is permanently attached to it
Property Classifications - Answers- Residential
Commercial
Industrial
Agricultural
Personal Property - Answers- Movable items not permanently affixed; that which is to
real is personal; valued by exception
Ownership Bundle of Rights - SLUGER (fee simple ownership) - Answers- S-Sell
L-Lease
U-Use
G-Give away
E-Enter or leave
R-Refuse
Gov't Restrictions to the Bundle of Rights - PETE - Answers- Police Power
Eminent Domain
, Taxation
Escheat (revert to state due to non-pymt of taxes, etc.)
Private Encumbrances on Property - Answers- HOA fees
Mortgages
Easements and ROW
Liens & judgments
Leases
Fee Simple - Answers- Ownership of all legal rights to property; highest and greatest
type of ownership interest (title) that can be held in real property.
For Property to have Value, it must have... - Answers- Utility
Scarcity
Desirability
Effective Purchasing Power
Value (def.) - Answers- The present worth of future benefits arising from the ownership
of real property. Monetary worth of property to buyers and sellers.
Value in Use - Answers- Value of a property for a specific use
Value in Exchange - Answers- the amount an informed buyer would offer in exchange
for a property under given market conditions
Cost (def.) - Answers- Sacrifice made to acquire property
Price (def.) - Answers- Amount asked, offered, or paid for a property
Market Value - Answers- Probable price which a property would bring in a competitive
and open market; type of value usually estimated by the appraiser
Appraisal - Answers- Opinion of value, usually in writing, of described property as of a
given date
Valuation - Answers- Process of estimating the value of property as of a given date.
Evaluation - Answers- Study of nature, quality of a parcel of real property in which a
value estimate is not necessarily required.
Highest and Best Use - Answers- Market value of vacant land depends on potential use
rather than current use alone.
Criteria for Highest and Best Use (in order) - Answers- Legally Permissible
Physically Possible
Financially Feasible
Discover
List
Value taxable property - Answers- Basic appraiser responsibilities
Standard 6: Scope of Work - Answers- USPAP standard for appraisal practice
ad valorem tax - Answers- Property tax based on value
Tax Rate (formula) - Answers- Budget (minus other revenue) / Assessed Value of
Jurisdiction
Tax Bill (formula) - Answers- Tax Rate x Ind. Property Assessed Value
Assessed Value (AV) formula - Answers- Assessment Ratio (AR) x Market Value (MV)
Property Tax Revenue (formula) - Answers- Budget minus other revenue
ETR (Effective Tax Rate) - Answers- Reflects the ratio between the current tax bill and
the property value.
ETR formula - Answers- A (assessment ratio) x T (tax rate)
Real Property - Answers- Interests, benefits, and rights associated with real estate
ownership
Real Estate - Answers- land and anything that is permanently attached to it
Property Classifications - Answers- Residential
Commercial
Industrial
Agricultural
Personal Property - Answers- Movable items not permanently affixed; that which is to
real is personal; valued by exception
Ownership Bundle of Rights - SLUGER (fee simple ownership) - Answers- S-Sell
L-Lease
U-Use
G-Give away
E-Enter or leave
R-Refuse
Gov't Restrictions to the Bundle of Rights - PETE - Answers- Police Power
Eminent Domain
, Taxation
Escheat (revert to state due to non-pymt of taxes, etc.)
Private Encumbrances on Property - Answers- HOA fees
Mortgages
Easements and ROW
Liens & judgments
Leases
Fee Simple - Answers- Ownership of all legal rights to property; highest and greatest
type of ownership interest (title) that can be held in real property.
For Property to have Value, it must have... - Answers- Utility
Scarcity
Desirability
Effective Purchasing Power
Value (def.) - Answers- The present worth of future benefits arising from the ownership
of real property. Monetary worth of property to buyers and sellers.
Value in Use - Answers- Value of a property for a specific use
Value in Exchange - Answers- the amount an informed buyer would offer in exchange
for a property under given market conditions
Cost (def.) - Answers- Sacrifice made to acquire property
Price (def.) - Answers- Amount asked, offered, or paid for a property
Market Value - Answers- Probable price which a property would bring in a competitive
and open market; type of value usually estimated by the appraiser
Appraisal - Answers- Opinion of value, usually in writing, of described property as of a
given date
Valuation - Answers- Process of estimating the value of property as of a given date.
Evaluation - Answers- Study of nature, quality of a parcel of real property in which a
value estimate is not necessarily required.
Highest and Best Use - Answers- Market value of vacant land depends on potential use
rather than current use alone.
Criteria for Highest and Best Use (in order) - Answers- Legally Permissible
Physically Possible
Financially Feasible
