IAAO 102 exam with verified answers
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Anticipation |- |correct |answer |Value |is |created |by |the |expectation |of |benefits |to |be |derived |in |
the |future
Substitution |- |correct |answer |the |prices, |rents, |and |rates |of |return |of |property |tend |to |be |set |
by |the |current |prices, |rents |and |rates |of |return |for |equally |desire |able |substitute |properties.
Contribution |- |correct |answer |the |value |of |a |component |of |real |estate |can |be |measured |by |
the |amount |it |contributes |to |net |operating |income |because |net |operating |income |can |be |
capitalized |into |value.
Market |Value |- |correct |answer |means |the |most |probable |price |which |a |property |should |bring |
in |a |competitive |and |open |market |under |all |conditions.
5 |Analysis |Questions |for |Investors |- |- |correct |answer |1. |How |much |it |cost?
2. |How |much |will |I |get |back?
3. |When |will |I |get |it |back?
4. |What |are |the |risk?
5. |What |are |some |comps |ROI |compared |to |my |interested |property?
Leverage |- |correct |answer |borrowing |of |funds |in |hopes |of |earning |a |greater |return |than |the |
cost |of |the |borrowed |funds. |This |amount |can |be |be |negative, |positive, |or |neutral.
Mortgage |- |correct |answer |most |common |type |of |financing |for |real |estate.
Junior |Mortgage |- |correct |answer |typical |a |second |mortgage
Chattel |Mortgage |- |correct |answer |a |mortgage |only |on |personal |property.
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Anticipation |- |correct |answer |Value |is |created |by |the |expectation |of |benefits |to |be |derived |in |
the |future
Substitution |- |correct |answer |the |prices, |rents, |and |rates |of |return |of |property |tend |to |be |set |
by |the |current |prices, |rents |and |rates |of |return |for |equally |desire |able |substitute |properties.
Contribution |- |correct |answer |the |value |of |a |component |of |real |estate |can |be |measured |by |
the |amount |it |contributes |to |net |operating |income |because |net |operating |income |can |be |
capitalized |into |value.
Market |Value |- |correct |answer |means |the |most |probable |price |which |a |property |should |bring |
in |a |competitive |and |open |market |under |all |conditions.
5 |Analysis |Questions |for |Investors |- |- |correct |answer |1. |How |much |it |cost?
2. |How |much |will |I |get |back?
3. |When |will |I |get |it |back?
4. |What |are |the |risk?
5. |What |are |some |comps |ROI |compared |to |my |interested |property?
Leverage |- |correct |answer |borrowing |of |funds |in |hopes |of |earning |a |greater |return |than |the |
cost |of |the |borrowed |funds. |This |amount |can |be |be |negative, |positive, |or |neutral.
Mortgage |- |correct |answer |most |common |type |of |financing |for |real |estate.
Junior |Mortgage |- |correct |answer |typical |a |second |mortgage
Chattel |Mortgage |- |correct |answer |a |mortgage |only |on |personal |property.