IAAO Course 300 Exam Questions with All Complete Solutions

IAAO Course 300 Exam Questions with All Complete Solutions Scope of Work Rule - ANSWER 1. Identify the problem to be solved 2. Determine and perform the scope of work necessary to develop credible assignment results 3. Disclose the scope of work in the report Scope of work acceptability - ANSWER When it meets or exceeds: 1. Expectations of parties who are regularly intended users for similar assignments and 2. What an Appraiser's peers actions would be in performing the same or similar assignments Economic Basis of Model Building - ANSWER Supply factors relate to availability and thus reflect such things as Cost, interest rates, and economic conditions. Demand factors include characteristics to buyers, such as construction quality, condition, and location. Basic Cost Model Structure - ANSWER MV = LV + BV Basic Sales Comparison Basic Model Structure - ANSWER MVs = Sc + ADJc Basic Income Models - ANSWER 1. NOI Model MV = NOI / OAR 2. GI Model MV = GI x GIM Model Development - ANSWER 1. Specification 2. Calibration 3. Quality Assurance Specification - ANSWER What data to include in the model and in what format 1. Additive 2. Multiplicative 3. Hybrid (generic) Additive Model Structure - ANSWER Each of the variables are independent from the other variables. A change in one variable does not directly impact any other variables MV = ($/sqft x sqft) + ($/plumbing fixture x #fixtures) + ($/car stall x #/cars) + ... Multiplicative Model Structure - ANSWER Each of the variables are interdependent. Any change to one variable will have an impact on all of the other variables. Hybrid (generic) Model Structure - ANSWER Combines both additive and multiplicative model structures Finding Net Operating Income (NOI) - ANSWER 1. Potential Gross Income (PGI) 100% occupancy at market rent (market rent is the prevailing rent in the open market, not the rent called for in a lease) 2. Minus Vacancy and Collection Loss (V&C) - any money lost from units not being rented or from people not paying rent