IAAO 300 EXAM REVIEW
QUESTIONS WITH COMPLETE A+
SOLUTIONS
what are 5 common measures of dispersion? - Answer-1.range
2.quartiles
3.percentiles
4.standard deviation
5.cov
sale screening - Answer-all single-parcel sales that are arms length & represent market
value to maximize the number of valid open market transactions
adjusting sales - Answer-is common for personal property
how to find weighted mean - Answer-sum of appraisals/sum of sales prices
COD steps - Answer-1.calculate & array ratios
2.find median ratio
3.calculate absolute difference between median & each ratio
4.sum up the differences
5.divide by number of sales (AAD)
6.divide AAD by median & multiply it by 100
(most common:widely used)
how to find trend factor - Answer-target level/current level = TF
what is the COD range for rural or small jurisdictions/less active markets - Answer-5 to
20
cost models follow the structure of - Answer-generic/hybrid models
direct costs - Answer--materials
-labor
-supervision
-building permits
indirect costs - Answer--insurance
-engineering fees
-interest
-taxes
, -marketing
-overhead & profits
what are the steps in cost approach - Answer-1.estimate the site value as if vacant
2.estimate RCN
3.determine & subtract depreciation
4.add land value
5. apply adjustments
comparative unit method - Answer-easiest & fastest, most widely used method of cost
estimation
how to get trend factor in original trended historical cost method - Answer-TF=current
index/index for year built
current cost=TF/original cost
what do low measures of dispersion indicate? - Answer-the calculated measures of
central tendency will fit most properties in stratum
what are strengths of MRA - Answer--rooted in market
-effective diagnostics
-less detailed data
-does not require separate estimate of land value
-availability
what are limitations of MRA - Answer--poor values when data is inaccurate
-requires adequate sales
-values must be reviewed
-does not produce separate land & building values
-cannot calibrate hybrid models
-need 50-100 sales
-number of sales is 4 to 5 times variables
market areas - Answer-broad geographic areas subject to the same economic influence
clusters - Answer-used to group similar subdivisions into neighborhoods (location, size,
age, quality)
LVRSA - Answer--method 2 in global model
-premium influence centers = positive adjustment
-negative influence centers = negative adjustment
in development of per unit values, most appropriate units would have low measures of -
Answer-dispersion
independent variables - Answer--type of property
QUESTIONS WITH COMPLETE A+
SOLUTIONS
what are 5 common measures of dispersion? - Answer-1.range
2.quartiles
3.percentiles
4.standard deviation
5.cov
sale screening - Answer-all single-parcel sales that are arms length & represent market
value to maximize the number of valid open market transactions
adjusting sales - Answer-is common for personal property
how to find weighted mean - Answer-sum of appraisals/sum of sales prices
COD steps - Answer-1.calculate & array ratios
2.find median ratio
3.calculate absolute difference between median & each ratio
4.sum up the differences
5.divide by number of sales (AAD)
6.divide AAD by median & multiply it by 100
(most common:widely used)
how to find trend factor - Answer-target level/current level = TF
what is the COD range for rural or small jurisdictions/less active markets - Answer-5 to
20
cost models follow the structure of - Answer-generic/hybrid models
direct costs - Answer--materials
-labor
-supervision
-building permits
indirect costs - Answer--insurance
-engineering fees
-interest
-taxes
, -marketing
-overhead & profits
what are the steps in cost approach - Answer-1.estimate the site value as if vacant
2.estimate RCN
3.determine & subtract depreciation
4.add land value
5. apply adjustments
comparative unit method - Answer-easiest & fastest, most widely used method of cost
estimation
how to get trend factor in original trended historical cost method - Answer-TF=current
index/index for year built
current cost=TF/original cost
what do low measures of dispersion indicate? - Answer-the calculated measures of
central tendency will fit most properties in stratum
what are strengths of MRA - Answer--rooted in market
-effective diagnostics
-less detailed data
-does not require separate estimate of land value
-availability
what are limitations of MRA - Answer--poor values when data is inaccurate
-requires adequate sales
-values must be reviewed
-does not produce separate land & building values
-cannot calibrate hybrid models
-need 50-100 sales
-number of sales is 4 to 5 times variables
market areas - Answer-broad geographic areas subject to the same economic influence
clusters - Answer-used to group similar subdivisions into neighborhoods (location, size,
age, quality)
LVRSA - Answer--method 2 in global model
-premium influence centers = positive adjustment
-negative influence centers = negative adjustment
in development of per unit values, most appropriate units would have low measures of -
Answer-dispersion
independent variables - Answer--type of property
