IAAO Course 102- Review with Complete Solutions

IAAO Course 102- Review with Complete Solutions Anticipation - ANSThe economic principle of _______ states that value is created by the expectation of benefits to be derived in the future. Substitution - ANSThe economic principle of _________ states that a property's maximum value tends to be set by the lowest cost or price at which another property of equivalent utility can be acquired. Income - ANSOne of three approaches to value in which the appraiser derives a value indication by converting anticipated benefits through ownership of income- producing property is the _______ approach. Real estate competes with other investments for the investor's dollar. As an investor analyzes various opportunities, what will he or she consider? - ANSHow much will it cost? How much will I get back? When will I get it back? What are the risks? What is the return of a real estate investment compared to other investments of similar risks? Oversupply; Shortage - ANSCompetitio