IAAO 102 EXAM PRACTICE ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS|A+ GRADE ASSURED 2026

IAAO 102 EXAM PREP/IAAO 102 EXAM PRACTICE ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS|A+ GRADE 2026
Anticipation - Value is created by the expectation of benefits to be derived in the future



Substitution - the prices, rents, and rates of return of property tend to be set by the current
prices, rents and rates of return for equally desire able substitute properties.



Contribution - the value of a component of real estate can be measured by the amount it
contributes to net operating income because net operating income can be capitalized into
value.



Market Value - means the most probable price which a property should bring in a competitive
and open market under all conditions.



5 Analysis Questions for Investors - - 1. How much it cost?

2. How much will I get back?

3. When will I get it back?

4. What are the risk?

5. What are some comps ROI compared to my interested property?



Leverage - borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds. This amount can be be negative, positive, or neutral.



Mortgage - most common type of financing for real estate.



Junior Mortgage - typical a second mortgage



Chattel Mortgage - a mortgage only on personal property.