IAAO 101 2023 Questions and Answers Solved 100%

Ownership of a property is the right to - ANSWER-Sell Lease or rent Use Give away Enter or leave Refuse to do any of the above Factors that influence DEMAND - ANSWER-Consumers taste and preference Consumer income Price of related commodities Consumer expectations The price of the commodity Factors that influence/effect land value - ANSWER-Physical Economic Governmental Social Basic responsibilities of an appraiser to all taxable - ANSWER-Discovery Listing Valuation Governmental restrictions on property - ANSWER-Taxable Eminent Doman Police Power Escheat Attributes of land are - ANSWER-Permanent Unique Finite supply Functional Stationary Land that had been developed to the extent that it is ready to be built - ANSWER-Site Sorting data in homogeneous groups with the primary sort being by market area - ANSWER-Stratification The order of adjustments in the direct sales comparison method are as follows - ANSWER-Financing Market conditions Location and physical characteristics Merging of adjacent properties into one common ownership and the unit value does not change is - ANSWER-Assemblage Methods of land valuation - ANSWER-Sales comparison Allocation Abstraction Anticipated use or development Capitalization of ground rent Land residual capitalization The combining of two or more sites creating a site that has greater utility and an increase unit value - ANSWER-Plottage A complete set of maps showing boundaries, parcel size, sales information, and other relevant features - ANSWER-Cadastral Map The practice of measuring the directions of property lines with compass bearings and the distance with measuring chains or tapes in order to obtain a property description. - ANSWER-Metes and Bounds Basic units of comparison - ANSWER-Front foot Square foot Acre Desirable characteristics recommended for a parcel identification system - ANSWER-Uniqueness Permanence Simplicity Ease of maintenance Flexibility Reference to geographic location Selection of comparable properties in to sales comparison approach, should consider - ANSWER-Financing Current market conditions ( date of sale) Similar in location Similar in size, age, and condition Similar in design type Similar in construction type Affected by the same for forces that influence value Similar physical attributes Assessment level × tax rate = - ANSWER-Effective tax rate Curable physical deterioration is measured by - ANSWER-Cost to Cure The cost of production an exact replica of a building or improvement - ANSWER-Reproduction Cost The basis for the adjustment in the sales comparison approach to value in the principle of - ANSWER-Contribution Which principle states that maximum value of a neighborhood is attained when the uses of land are perfectly complementary ( 4 agents of production are balance - land, labor, capitol, and management) - ANSWER-Balance A unit of comparison that would be applicable to agricultural farmland or larger rural residential tracts would be the - ANSWER-Price per acre Types of neighborhood boundaries - ANSWER-Man-made Political Natural Determine ratio of land value to building value in similar neighborhoods that have vacant land sales - ANSWER-Allocation The difference between the market value of an improvement and its cost at the time of appraisal - ANSWER-Depreciation Value of a property depends on its relationship to its surroundings, maximum market value is achieved when reasonable similarities among improvements in the neighborhood. - ANSWER-Principle of Conformity Ownership of all rights to the property except governmental restrictions - ANSWER-Fee simple Tax revenue ÷ assessed value - ANSWER-Tax Rate Tests for highest and best use - ANSWER-Physically possible Legally permissible Financially feasible Most productive Value created by the expected future benefits from the property: related to the Principle of Change - ANSWER-Principle of Anticipation Association with lower quality properties of the same area decreases the value of a better quality property - ANSWER-Principle of Regression Created by the potential for profits; availability must be in harmony with demand; if one or the other is in excess prices will decrease or increase - ANSWER-Principle of Competition Loss in value due to inability of the structure to perform the functions; changes in demand ,design, taste and technology; can be curable or incurable - ANSWER-Functional Obsolescence Collection of data on individual properties and applications of the data to estimate the value of many properties - ANSWER-Mass Appraisal (Ex. CAMA, Computer Assisted Mass Appraisal) Rights of possession and use of property - ANSWER-Possessory Interest ¼ of a section - ANSWER-160 acres The value of a property to a specific user or for a specific use - ANSWER-value in use 1 acre section - ANSWER-43,560 SF Net income remaining after the costs of labor, management, and capitol have been satisfied, income earned by land, increase income= increase value - ANSWER-Principle of Surplus Productivity Measured by age-life; items not ready to be replaced by will probably be replaced soon; economic like less than total improvements, carpet, water heater, roof, etc. - ANSWER-Incurable physical depreciation (short lived) Typically occur at the construction site and includes; labor, materials, supervision, equipment rental, and utilities - ANSWER-Direct Cost Steps in the appraisal process - ANSWER-Definition of the problem Preliminary survey and analysis Data collections and analysis ( general, specific, comparative) Highest and best use Application of data(cost, sales, income) Correlation/reconciliation of value Each section contains - ANSWER-640 acres Elements in the marketplace that contribute to the change in supply - ANSWER-Cost of production Price of other goods Entrepreneurs expectation Number of sellers