Iaao 102 Study guides, Class notes & Summaries

IAAO 102 EXAM ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERSAGRADE

Capitalization Rate correct answers A rate used for converting property income into property value Discount Rate correct answers The rate of return on a real estate investment. It reflects the compensation necessary to attract investors to give up liquidity. Recapture rate correct answers Provides for the return of the investment in the wasting portion of the asset. this is similar to the depreciation rate for the improvment. Overall /rate correct answers The direct relationship between...

List five sources of rental income data: - Answer- 1. Commercial property managers 2. Tenants of comparable properties 3. Real estate brokers and sales people 4. Sellers and purchasers of comparable properties 5. Public records Another name for market rent is___________rent. - Answer- economic In addition to sales and leases, _________ and ___________ can be a valid source of market information, if care is exercised. - Answer- offers listings 4. A lease that provides for one or mo...

Value is created by the expectation of benefits to be derived in the future. - Answer- Anticipation This is the underlying principle which provides the basis of the income capitalization approach. - Answer- Anticipation The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. - Answer- Market Value All investors want a return OF their money - Answer- Recapture rate or getting back amount invested All investors wan...

IAAO 102 EXAM NEWEST VERSION WITH COMPLETE SOLUTIONS

Anticipation - Answer- Value is created by the expectation of benefits to be derived in the future Substitution - 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 - 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 - ...

IAAO 102 Income with 100% correct answers.

Value is created by the expectation of benefits to be derived in the future. correct answers Anticipation The prices, rents, and rates of return of property tend to be set by the current prices, rents, and rates of return for equally desirable substitute properties. correct answers Substitution The most profitable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, ...

capitalization is the process to: - Answer- convert income into an estimation of value A loan secured by featuring an intrest rate that is constant for the term of the loan is reffered to as a (an): - Answer- fixed-rate mortgage the underlying principle providing the basis of the income capitalization approach is : - Answer- anticipation the basis equation used in the income approach to value is: - Answer- income divided by rate equals value a gross lease requires that in addition to...

IAAO 102 EXAM NEWEST VERSION WITH COMPLETE SOLUTIONS