IAAO 101 QUESTIONS AND CORRECT
ANSWERS
Principle of Substitution * ANSW✅✅Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property
Principle of Surplus Productivity * ANSW✅✅Net income remaining after the cost of labor,
management, and capital has been paid
Supply ANSW✅✅The amount of goods that producers are willing to sell at a given price during a
specified period
Demand ANSW✅✅The amount of a commodity that consumers buy at a given price during a
specified period
The four major determinants of supply are as follows: ANSW✅✅1. The cost of production
2. The price of other goods
3. Entrepreneurs' expectations
4. The number of sellers in the market
The five factors that influence demand are: ANSW✅✅1. Consumer taste and preferences
2. Consumer income
3. Price of related commodities
4. Consumer expectations
5. The price of the commodity
Square feet in 1 acre ANSW✅✅43,560 square foot
Stratification ANSW✅✅Sorting data in homogeneous groups with the primary sort being by
market area (economic area)
, The order of adjustments in the direct sales comparison method are as follows: ANSW✅✅1.
Financing
2. Market Conditions (Time of sale)
3. Location and Physical Characteristics
Assemblage ANSW✅✅is the merging of adjacent properties into one common ownership. The
unit value does not change
Plottage ANSW✅✅Is the combining of two or more sites creating a site that has greater utility
and an increased unit value
The six methods of land valuation are as follows: ANSW✅✅1. Sales Comparison
2. Allocation
3. Abstraction
4. Anticipated use or Development
5. Capitalization of Ground Rent
6. Land Residual Capitalization
Cadastral Map ANSW✅✅A complete set of maps showing boundaries, parcel size, sales
information, and other relevant features.
Metes and Bounds ANSW✅✅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
Examples of basic Units of Comparison ANSW✅✅Front foot, square foot and acre
Parcel Identifier ANSW✅✅The property account number, linking ownership records, tax maps,
and assessment records
The six desirable characteristics recommended for a parcel identification system are as follows:
ANSW✅✅1. Uniqueness
2. Permanence
ANSWERS
Principle of Substitution * ANSW✅✅Market value of a property tends to be set by the cost of
acquiring an equally desirable and valuable property
Principle of Surplus Productivity * ANSW✅✅Net income remaining after the cost of labor,
management, and capital has been paid
Supply ANSW✅✅The amount of goods that producers are willing to sell at a given price during a
specified period
Demand ANSW✅✅The amount of a commodity that consumers buy at a given price during a
specified period
The four major determinants of supply are as follows: ANSW✅✅1. The cost of production
2. The price of other goods
3. Entrepreneurs' expectations
4. The number of sellers in the market
The five factors that influence demand are: ANSW✅✅1. Consumer taste and preferences
2. Consumer income
3. Price of related commodities
4. Consumer expectations
5. The price of the commodity
Square feet in 1 acre ANSW✅✅43,560 square foot
Stratification ANSW✅✅Sorting data in homogeneous groups with the primary sort being by
market area (economic area)
, The order of adjustments in the direct sales comparison method are as follows: ANSW✅✅1.
Financing
2. Market Conditions (Time of sale)
3. Location and Physical Characteristics
Assemblage ANSW✅✅is the merging of adjacent properties into one common ownership. The
unit value does not change
Plottage ANSW✅✅Is the combining of two or more sites creating a site that has greater utility
and an increased unit value
The six methods of land valuation are as follows: ANSW✅✅1. Sales Comparison
2. Allocation
3. Abstraction
4. Anticipated use or Development
5. Capitalization of Ground Rent
6. Land Residual Capitalization
Cadastral Map ANSW✅✅A complete set of maps showing boundaries, parcel size, sales
information, and other relevant features.
Metes and Bounds ANSW✅✅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
Examples of basic Units of Comparison ANSW✅✅Front foot, square foot and acre
Parcel Identifier ANSW✅✅The property account number, linking ownership records, tax maps,
and assessment records
The six desirable characteristics recommended for a parcel identification system are as follows:
ANSW✅✅1. Uniqueness
2. Permanence
