IAAO 101 Exam Questions and Correct Answers Latest Update Already Passed

IAAO 101 Exam Questions and Correct Answers Latest Update Already Passed ad valorem - Answers According to Value The basic responsibilities of an Appraiser to all taxable property. - Answers 1. Discovery 2. Listing 3. Valuation The taxable location of personal property is referred to as its' - Answers Situs The type of value usually estimated by an Appraiser is the - Answers Market Value The effective tax rate reflects the ratio between what - Answers The current tax bill and the property value Assessment level times the tax rate equals - Answers The effective tax rate _________ divided by the assessed value equals the tax rate. - Answers Budget _________ is the physical land and everything permanently attached to it. - Answers Real Estate Property tax is an _________. - Answers ad valorem tax How do you calculate the Assessment Ratio of a property? - Answers Assessed Value ÷ Market Value How do you calculate the Tax rate (%) ? - Answers Budgeted Revenue (Minus any other revenue sources) ÷ Total Assessed Value of all property How do you calculate the Property Tax bill? - Answers Tax rate X Assessed value of Property Fractional Assessment - Answers An assessed value not statutorily at 100% of market value The six basic rights associated with property are: - Answers SLUGER 1. Sell 2. Lease 3. Use 4. Give away 5. Enter or Leave 6. Refuse to do any of the above The four factors that influence/effect land values are: - Answers PEGS 1. Physical (Environmental) 2. Economic 3. Governmental 4. Social _________ consists of movable items not permanently affixed to, or part of the real estate - Answers Personal Property The four Governmental restrictions on property ownership: - Answers TEPE 1. Taxation 2. Eminent domain 3. Police power 4. Escheat Private encumbrances: - Answers 1. Co-Owners 2. Condominium/Subdivision restrictions 3. Covenants 4. Mortgages 5. Easements 6. Liens and Judgements 7. Leases Value in use - Answers Is the value of a property for a specific use Value in exchange - Answers Is the amount an informed buyer would offer in exchange for a property under given market conditions Principle of Anticipation * - Answers Present worth of future benefits Principle of Change * - Answers The tendency of social and economic forces affecting supply and demand to alter over time Principle of Contribution * - Answers The basis for applying the adjustments in the sales comparison approach Principle of Substitution * - Answers Market value of a property tends to be set by the cost of acquiring an equally desirable and valuable property Principle of Surplus Productivity * - Answers Net income remaining after the cost of labor, management, and capital has been paid Supply - Answers The amount of goods that producers are willing to sell at a given price during a specificed period Demand - Answers The amount of a commodity that consumers buy at a given price during a specified period The four major determinants of supply are as follows: - Answers 1. The cost of production 2. The price of other goods 3. Entrepreneurs' expectations 4. The number of sellers in the market The five factors that influence demand are: - Answers 1. Consumer taste and preferences 2. Consumer income 3. Price of related commodities 4. Consumer expectations 5. The price of the commodity Square feet in 1 acre - Answers 43,560 square foot Stratification - Answers Sorting data in homogeneous groups with the primary sort being by market area (economic area) The order of adjustments in the direct sales comparison method are as follows: - Answers 1. Financing 2. Market Conditions (Time of sale) 3. Location and Physical Characteristics Assemblage - Answers is the merging of adjacent properties into one common ownership. The unit value does not change Plottage - Answers Is the combining of two or more sites creating a site that has greater utility and an increased unit value