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IAAO 102 EXAM AND PRACTICE EXAM ALL
QUESTIONS AND WELL ELABORATED ANSWERS
ALREADY A GRADED WITH EXPERT FEEDBACK
LATEST UPDATE | NEW AND REVISED
Value is created by the expectation of benefits to be derived in the future. -
(answers)Anticipation
This is the underlying principle which provides the basis of the income
capitalization approach. - (answers)Anticipation
The most probable price a property should bring in a competitive and open
market under all conditions requisite to a fair sale. - (answers)Market Value
All investors want a return OF their money - (answers)Recapture rate or getting
back amount invested
All investors want a return ON their investment - (answers)Overall yield or
discount rate; profit realized in addition to getting back the amount invested.
The borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds. - (answers)leverage
A written document that pledges specific real estate as a guarantee for the
payment of a loan to help purchase a property. - (answers)Mortgages
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A mortgage only on a personal property - (answers)chattel
Also known as the discount rate, reflects the return on investment -
(answers)overall yield rate
Provides for the return of the investment in the wasting portion of the asset. This
is similar to the depreciation rate for the improvement. - (answers)Recapture rate
Reflects the return of thd investment in the wasting asset. - (answers)recapture
rate
What kind of leverage is achieved when funds are invested in property, which has
a higher rate of return than the cost of borrowed funds. - (answers)positive
Variables in real estate financing that affect the mortgage payment - (answers)1.
Amount borrowed.
2. interest rate
3. term of loan
4. frequency of payments
Reflects the return on the investment - (answers)overall yield.
Reflects the relationship between the real estate taxes and the value of the
property - (answers)effective tax
IAAO 102 EXAM AND PRACTICE EXAM ALL
QUESTIONS AND WELL ELABORATED ANSWERS
ALREADY A GRADED WITH EXPERT FEEDBACK
LATEST UPDATE | NEW AND REVISED
Value is created by the expectation of benefits to be derived in the future. -
(answers)Anticipation
This is the underlying principle which provides the basis of the income
capitalization approach. - (answers)Anticipation
The most probable price a property should bring in a competitive and open
market under all conditions requisite to a fair sale. - (answers)Market Value
All investors want a return OF their money - (answers)Recapture rate or getting
back amount invested
All investors want a return ON their investment - (answers)Overall yield or
discount rate; profit realized in addition to getting back the amount invested.
The borrowing of funds in hopes of earning a greater return than the cost of the
borrowed funds. - (answers)leverage
A written document that pledges specific real estate as a guarantee for the
payment of a loan to help purchase a property. - (answers)Mortgages
, 2|Page
A mortgage only on a personal property - (answers)chattel
Also known as the discount rate, reflects the return on investment -
(answers)overall yield rate
Provides for the return of the investment in the wasting portion of the asset. This
is similar to the depreciation rate for the improvement. - (answers)Recapture rate
Reflects the return of thd investment in the wasting asset. - (answers)recapture
rate
What kind of leverage is achieved when funds are invested in property, which has
a higher rate of return than the cost of borrowed funds. - (answers)positive
Variables in real estate financing that affect the mortgage payment - (answers)1.
Amount borrowed.
2. interest rate
3. term of loan
4. frequency of payments
Reflects the return on the investment - (answers)overall yield.
Reflects the relationship between the real estate taxes and the value of the
property - (answers)effective tax
