IAAO 101 PRACTICE TESTS EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
List the four tests that the appraiser must make in the analysis of the highest and best use. -
ANS 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. - ANS 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. - ANS Personal
Assessment level times the tax rate equals the ________ ______ ______. - ANS Effective Tax
Rate
The property tax is a/an ____ _______ tax, meaning it is based on the value. - ANS Ad
Volorem
2026/2027 ALLRIGHTS RESERVED
1
,The assessor is responsible for the _______, ________, and __________ of all taxable property.
- ANS Discovery, Listing, Valuation
The taxable location of personal property is referred to as its ________. - ANS Situs
An estimate of value, usually in writing, of an adequately described property, as of a given date,
is termed a/an _______________. - ANS Appraisal
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from the
property tax by the ________ ____________ _______ of the taxing jursidiction. -
ANS Revenue or Budget/Total Assessed Value
The type of value usually estimated by the assessor is __________ value. - ANS Market
The ____________ ____ _______ reflects the ratio between the current tax bill and the
property value. - ANS Effective Tax Rate
In order for a property to have value, it must have __________, ___________,
________________, and ______________ _____________ __________. - ANS 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 __________ ___ _____ ___. - ANS Highest and Best Use
The principle of _______ states that maximum value of a neighborhood is attained when the
uses of land are perfectly complementary. - ANS 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? - ANS Consistent Use
2026/2027 ALLRIGHTS RESERVED
2
, _____________ is the point at which the forces of supply and forces of demand meet. -
ANS Equilibrium
List the two types of highest and best use analysis. - ANS 1. As If Vacant
2. As If Improved
The typical life cycle of a neighborhood includes ______, ________, _________, and
_____________. - ANS Growth, Stability, Decline, Revitalization
What elements of the marketplace are most likely to contribute to a change in demand? -
ANS 1. Consumer Taste/Preferences
2. Consumer Income
3. Price of Related Commodities
4. Consumer Expectations
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 - ANS 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. - ANS Supply
Ownership of all legal rights to property is limited by government in four ways: - ANS 1.
Taxation
2. Eminent Domain
3. Police Power
2026/2027 ALLRIGHTS RESERVED
3
QUESTIONS AND ANSWERS 100% PASS
2026/2027
List the four tests that the appraiser must make in the analysis of the highest and best use. -
ANS 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. - ANS 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. - ANS Personal
Assessment level times the tax rate equals the ________ ______ ______. - ANS Effective Tax
Rate
The property tax is a/an ____ _______ tax, meaning it is based on the value. - ANS Ad
Volorem
2026/2027 ALLRIGHTS RESERVED
1
,The assessor is responsible for the _______, ________, and __________ of all taxable property.
- ANS Discovery, Listing, Valuation
The taxable location of personal property is referred to as its ________. - ANS Situs
An estimate of value, usually in writing, of an adequately described property, as of a given date,
is termed a/an _______________. - ANS Appraisal
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from the
property tax by the ________ ____________ _______ of the taxing jursidiction. -
ANS Revenue or Budget/Total Assessed Value
The type of value usually estimated by the assessor is __________ value. - ANS Market
The ____________ ____ _______ reflects the ratio between the current tax bill and the
property value. - ANS Effective Tax Rate
In order for a property to have value, it must have __________, ___________,
________________, and ______________ _____________ __________. - ANS 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 __________ ___ _____ ___. - ANS Highest and Best Use
The principle of _______ states that maximum value of a neighborhood is attained when the
uses of land are perfectly complementary. - ANS 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? - ANS Consistent Use
2026/2027 ALLRIGHTS RESERVED
2
, _____________ is the point at which the forces of supply and forces of demand meet. -
ANS Equilibrium
List the two types of highest and best use analysis. - ANS 1. As If Vacant
2. As If Improved
The typical life cycle of a neighborhood includes ______, ________, _________, and
_____________. - ANS Growth, Stability, Decline, Revitalization
What elements of the marketplace are most likely to contribute to a change in demand? -
ANS 1. Consumer Taste/Preferences
2. Consumer Income
3. Price of Related Commodities
4. Consumer Expectations
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 - ANS 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. - ANS Supply
Ownership of all legal rights to property is limited by government in four ways: - ANS 1.
Taxation
2. Eminent Domain
3. Police Power
2026/2027 ALLRIGHTS RESERVED
3
