IAAO 101 | Questions with 100% Verified Answers | Latest Update 2026/2027

IAAO 101 | Questions with 100% Verified Answers | Latest
Update 2026/2027
Question: Basic responsibilities of tax assessors
Answer: Discover, List, and Value

Question: What are the rights of ownership? Bundle of rights
Answer: Sell, Lease, Use, Give away, Enter or Leave, Right to not do anything. (S.L.U.G.E.R.)

Question: What are the Government restrictions placed on bundle of rights?
Answer: T.E.P.E. Taxation, Eminent domain, police power, escheat

Question: In order for a property to have value, it must have?
Answer: Utility, scarcity, desirability, and purchasing power.

Question: Anticipation
Answer: Present worth of future benefits.

Question: Balance
Answer: Maximum value is obtained when the four agents of production attain a state of equilibrium.

Question: Change
Answer: The tendency of social economic forces affecting supply and demand to shift over time

Question: Competition
Answer: Availability must be in harmony with demand. If one or the other is in excess, prices will increase or
decrease.

Question: Conformity
Answer: The value of property depends, in part, on its relationship to its surroundings.

Question: Consistent Use
Answer: Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable
property.

Question: Contribution
Answer: The value for a component of property depends on its contribution to the whole.

Question: Increasing/Decreasing Returns
Answer: After a certain point, the addition of successive increments of one agent of production decreases
future incomes or amenities.

Question: Progression / Regression
Answer: The value of a lower priced property is increased by its association with better properties of the same
type and vice versa.

, Question: Substitution
Answer: Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable
property.

Question: Surplus Productivity
Answer: Net income remaining after the costs of labor, management, and capital have been paid

Question: Supply
Answer: The amount of goods that producers are willing to sell under various conditions during a given period.

Question: Demand
Answer: Quantities of various goods that people are willing and able to buy during some period, given the
choices available to them.

Question: What is highest and best use?
Answer: The use that generates the highest net return to the property over a reasonable time period.

Question: What is the criteria for highest and best use?
Answer: Must be legally permissible, physically possible, financially feasible, and maximally productive.

Question: What are the 7 steps of the appraisal process?
Answer: Define the problem, scope of work, preliminary survey and analysis, data collection and analysis,
highest and best use, application of approach(es), reconciliation.

Question: The four forces or factors of value are?
Answer: PEGS, Physical, Economic, Government, and Social

Question: What is the typical life cycle of a NBHD?
Answer: Growth, Stability, Decline, and Revitalization

Question: Property tax is a what kind of tax?
Answer: Ad Valorem

Question: The taxable location of personal property is referred to as its?
Answer: Situs

Question: What are the two types of highest and best use analysis?
Answer: As if vacant and as if improved.

Question: What is the point at which the forces of supply and forces of demand meet?
Answer: Equilibrium

Question: What is the basis for adjustments in the sales comparison approach to value is the principle of?
Answer: Contribution

Question: The ownership of all legal rights is known as?
Answer: Fee Simple