IAAO Course 101 Exam Questions and Answers 2023

ad volorem - Answer- according to value 3 Responsibilities of an assessor - Answer- Discover List Value Important tools in the discover of property - Answer- Adequate mapping system Recorded information Periodic on-site inspection Different class identifications - Answer- Real Personal Exempt Utility Important elements in the listing of property - Answer- Legal description Street address Parcel identifier Property class Property use Property situs Physical attributes Value or valuation key steps - Answer- Estimate Assess Review Certify Purpose of USPAP - Answer- To promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers USPAP ethics rule - Answer- Integrity Impartiality Objectivity Independent judgment Ethical conduct Property - Answer- In aggregate of things or right to things or the legal interest of an owner in a parcel or thing What is USPAP comprised of - Answer- Definitions preamble ethics rule record keeping rule l competency rule scope of work rule jurisdictional exemption rule 10 standards What is USPAP - Answer- Uniform Standards of professional Appraisal Practice Legal definition of property - Answer- The right to possess, use, enjoy, dispose of a thing Three major categories of property - Answer- Real Personal intangible Real Property - Answer- Interests, benefits, and rights inherent and ownership of land in anything permanently attached to the land real estate - Answer- Land, and improvements, permanently attached to it Four property classes - Answer- Residential commercial industrial agricultural Personal Property - Answer- Movable items not permanently affixed to, or a part of, the real estate intangible property - Answer- Non-physical assets that have no extrinsic value The bundle of rights of ownership - Answer- 2. Lease or rent 3. Use 4. Giveaway 5. Enter or leave 6. Refuse Governmental restrictions of ownership - Answer- Taxation, eminent domain, police power, escheat Private encumbrances of ownership - Answer- 1. Rights of co-owners 2. condominium and subdivision restrictions 3. Covenants, conditions, and restrictions 4. Mortgages 5. Easements and right of ways 6. Liens and judgments 7. Leases Five kinds of estates in property - Answer- Fee simple, leasehold, leased fee, possessory, life estates Fee Simple - Answer- the maximum bundle of rights, or estate, permitted by law Leasehold interest - Answer- the right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease Possessory Interest - Answer- An interest in property that entitles the holder to possess and occupy the property, now or in the future; an estate, which may be either a freehold or leasehold. Life Estate - Answer- Ownership limited to the life of the owner Value - Answer- Present worth the future benefits arising from ownership of real property Value Requirements - Answer- Utility, scarcity, desirability, effective purchasing power value in use - Answer- value of property for specific use value in exchange - Answer- Amount informed buyer offers for property under given market conditions cost - Answer- Sacrifice made to acquire price - Answer- Amount asked, offered, or paid value - Answer- Monetary worth to buyers and sellers Market Value - Answer- Most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus Appraisal - Answer- Estimate of value usually in writing adequately described property as of a given date Valuation - Answer- Estimate of value Real or personal property Given date Evaluation - Answer- Study of real estate or real property Value estimate not necessarily required Principle of Anticipation - Answer- Expected future benefits Principle of Change - Answer- Market value is never constant Principle of Balance - Answer- For agents of production attain equilibrium Principle of Competition - Answer- Increased competition results in decreased profits for current providers Principle of conformity - Answer- Appraisal theory that affirms that the maximum value is realized if the use of land conforms to existing neighborhood standards. Principle of Consistent Use - Answer- A property must be valued with a single use for the entire property Principle of Contribution - Answer- The value of any component of property is determined by how much value the improvement contributes to the value of the whole property. Principle of increasing/decreasing returns - Answer- Invest in property whenever each dollar invested will return a dollar or more of increased value and stop when each dollar invested returns less than a dollar in value- do not over- improve a property Principle of progression and regression - Answer- Value of the best property will be adversely affected by the presence of comparatively sub standard. Principle of Substitution - Answer- The maximum value of a property tends to be set by the cost of purchasing an equally desirable substitute property. Principle of Surplus Productivity - Answer- Net income to the land that remains after the cost of the other agents of production have been paid. (land residual) Principle of Supply and Demand - Answer- Value is affected by scarcity of a product and the desire for that item. The appropriate map scale for rural areas is - Answer- 1' to 400" The appropriate map scale for suburban areas and small towns is - Answer- 1" = 200' The appropriate map scale for urban areas is - Answer- 1" = 100' Parcel Identifier - Answer- The property account number, linking ownership records, tax maps, and assessment record Metes and bounds system - Answer- A land description system in which boundaries are described as distances between two semi permanent points or as lines following compass bearings is known as Offsite improvements - Answer- Improvements such as streets, sidewalks, and availability charities are considered what kind of improvements? site - Answer- Land has been developed to the extent that is ready to be built upon Cadastral maps - Answer- Shows boundaries personal size sales information and other relevant features of all parcel and jurisdiction Direct Sales Comparison Method - Answer- The preferred method of valuing land if adequate data is available In areas of rapid growth, which types of sales data might be preferable? - Answer- Market, or time, adjusted sales data Stratification is the first step in analyzing land sales, and the primary sort is by ___________ - Answer- Market area Abstraction Method - Answer- The method of valuing land that subtract the depreciated value of improvement from the sale price