IAAO 102 EXAM / IAAO 102 EXAM
PREP/IAAO 102 EXAM PRACTICE ACTUAL
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS || NEWEST
UPDATE!!!
Anticipation
the underlying principle which provides the basis of the income capitalization approach
income divided by rate equals value
the basic equation used in the income approach to value
NOT a typical unit of comparison in the valuation of an apartment building
price per acre
Income approach to value
-based on the principle of anticipation
-translates the ability of property to generate income into an indication of value
-requires an estimate of net operating income of property
Value is created by the anticipation of
future benefits
capitalization is the process used to
convert income into and estimate of value
a loan secured by real property featuring an interest rate that is constant for the
term of the loan is referred to as a
fixed-rate mortgage
, A loan is made in which an existing loan is retained and an additional loan, larger
than the existing loan, is made. The new lender accepts the obligation to make
payments on the old loan. This is an example of what kind of mortgage?
Wraparound mortgage
From the tenant's standpoint, when economic rent exceeds contract rent the
difference is know as:
leasehold income
The rental income that a property would most probably command in the open
market is called:
Market rent
NOT an allowable expense from the appraiser's point of view:
depreciation
Why does an appraiser prepare a reconstructed operating statement when using
the income approach?
to develop an estimated projection of expected income and expense that will reflect the
earning capacity of the property
The anticipated income from all operations of the property adjusted for vacancy
and collection losses, and miscellaneous income is called:
effective gross income
Best describes the amount of adjustment an appraiser should make for vacancy
allowance in property:
the amount will vary with each property
Net operating income minus debt service equals:
PREP/IAAO 102 EXAM PRACTICE ACTUAL
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS || NEWEST
UPDATE!!!
Anticipation
the underlying principle which provides the basis of the income capitalization approach
income divided by rate equals value
the basic equation used in the income approach to value
NOT a typical unit of comparison in the valuation of an apartment building
price per acre
Income approach to value
-based on the principle of anticipation
-translates the ability of property to generate income into an indication of value
-requires an estimate of net operating income of property
Value is created by the anticipation of
future benefits
capitalization is the process used to
convert income into and estimate of value
a loan secured by real property featuring an interest rate that is constant for the
term of the loan is referred to as a
fixed-rate mortgage
, A loan is made in which an existing loan is retained and an additional loan, larger
than the existing loan, is made. The new lender accepts the obligation to make
payments on the old loan. This is an example of what kind of mortgage?
Wraparound mortgage
From the tenant's standpoint, when economic rent exceeds contract rent the
difference is know as:
leasehold income
The rental income that a property would most probably command in the open
market is called:
Market rent
NOT an allowable expense from the appraiser's point of view:
depreciation
Why does an appraiser prepare a reconstructed operating statement when using
the income approach?
to develop an estimated projection of expected income and expense that will reflect the
earning capacity of the property
The anticipated income from all operations of the property adjusted for vacancy
and collection losses, and miscellaneous income is called:
effective gross income
Best describes the amount of adjustment an appraiser should make for vacancy
allowance in property:
the amount will vary with each property
Net operating income minus debt service equals:
