IAAO 101 Chapter 4 Test Solution Manual Already Passed
The Principle of ______ holds that the value of a property tends to be set by the price that would be
paid to acquire a property of similar utility and desirability within a reasonable amount of time. -
Answers Substitution
The Principle of _______ is the underlying principle in the adjustment process in the sales comparison
approach. - Answers Contribution
A major principle in the sales comparison approach holds that the relationship between a property and
its environment must be in ____ for a property to reflect its optimum market value, - Answers balance
A major advantage to the sales comparison approach is that it reflects the actions of _____ and ______
in the market. - Answers buyers and sellers in the market
A unit of comparison that would be applicable to agricultural farmland or larger rural residential tracts
would be the ___________. - Answers price per acre
In the selection of comparable properties in the sales comparison approach, list four comparability items
that should be considered. - Answers -Financing
-current market conditions (date of sale)
-similar in location
-similar in size, age, condition
-similar in design type
-similar in construction type
-affected by the same four forces that influence value
-similar physical attributes
List the order of adjustments in the sales comparison approach. - Answers 1. Financing
2. Market conditions (time of sale)
3. Location and other physical characteristics
A unit of comparison that would be applicable to single-family residential property is the - Answers price
per square foot of gross living area or total property price.
Which method of determining adjustments in the sales comparison approach cannot be used to
determine market conditions (changes in value over time)? - Answers depreciated cost
The Principle of ______ holds that the value of a property tends to be set by the price that would be
paid to acquire a property of similar utility and desirability within a reasonable amount of time. -
Answers Substitution
The Principle of _______ is the underlying principle in the adjustment process in the sales comparison
approach. - Answers Contribution
A major principle in the sales comparison approach holds that the relationship between a property and
its environment must be in ____ for a property to reflect its optimum market value, - Answers balance
A major advantage to the sales comparison approach is that it reflects the actions of _____ and ______
in the market. - Answers buyers and sellers in the market
A unit of comparison that would be applicable to agricultural farmland or larger rural residential tracts
would be the ___________. - Answers price per acre
In the selection of comparable properties in the sales comparison approach, list four comparability items
that should be considered. - Answers -Financing
-current market conditions (date of sale)
-similar in location
-similar in size, age, condition
-similar in design type
-similar in construction type
-affected by the same four forces that influence value
-similar physical attributes
List the order of adjustments in the sales comparison approach. - Answers 1. Financing
2. Market conditions (time of sale)
3. Location and other physical characteristics
A unit of comparison that would be applicable to single-family residential property is the - Answers price
per square foot of gross living area or total property price.
Which method of determining adjustments in the sales comparison approach cannot be used to
determine market conditions (changes in value over time)? - Answers depreciated cost
