Page | 1
IAAO COURSE 300 2025 BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT SOLUTIONS|
ACE YOUR GRADES.
Scope of Work Rule - correct 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 - correct 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 - correct 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.
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Basic Cost Model Structure - correct answer -MV = LV + BV
Basic Sales Comparison Basic Model Structure - correct answer -
MVs = Sc + ADJc
Basic Income Models - correct answer -1. NOI Model
MV = NOI / OAR
2. GI Model
MV = GI x GIM
Model Development - correct answer -1. Specification
2. Calibration
3. Quality Assurance
Specification - correct answer -What data to include in the model
and in what format
1. Additive
2. Multiplicative
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3. Hybrid (generic)
Additive Model Structure - correct 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 - correct 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 - correct answer -Combines both
additive and multiplicative model structures
Finding Net Operating Income (NOI) - correct 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
IAAO COURSE 300 2025 BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT SOLUTIONS|
ACE YOUR GRADES.
Scope of Work Rule - correct 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 - correct 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 - correct 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.
, Page | 2
Basic Cost Model Structure - correct answer -MV = LV + BV
Basic Sales Comparison Basic Model Structure - correct answer -
MVs = Sc + ADJc
Basic Income Models - correct answer -1. NOI Model
MV = NOI / OAR
2. GI Model
MV = GI x GIM
Model Development - correct answer -1. Specification
2. Calibration
3. Quality Assurance
Specification - correct answer -What data to include in the model
and in what format
1. Additive
2. Multiplicative
, Page | 3
3. Hybrid (generic)
Additive Model Structure - correct 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 - correct 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 - correct answer -Combines both
additive and multiplicative model structures
Finding Net Operating Income (NOI) - correct 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
