IAAO 102 QUESTIONS AND ANSWERS
Value is created by the expectation of benefits to be derived in the future. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Anticipation
The prices, rents, and rates of return of property tend to be set by the current prices, rents,
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
and rates of return for equally desirable substitute properties. - ans-Substitution
sw sw sw sw sw sw sw sw sw sw
The most profitable price which a property should bring in a competitive and open market
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
knowledgeably, and assuming the price is not affected by undue stimulus. - ans- sw sw sw sw sw sw sw sw sw sw sw sw
Market Value sw
The worth of an investment property to a particular investor. Investment value may or may
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
not coincide with market value depending on the requirements of the specific investor. -
sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Investment value
sw sw
1. All investors want a return ON their investment - ans-Overall yield or Discount rate
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
All investors want a return OF their investment. - ans-Recapture rate
sw sw sw sw sw sw sw sw sw sw
Can be positive, negative or neutral. - ans-Leverage
sw sw sw sw sw sw sw
Mortgage only on personal property. - ans-Chattel sw sw sw sw sw sw
What is also known as the discount rate, reflects the return on investment? - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Overall yield rate (Yo) sw sw sw
IRV - ans-Income NOI (net operating income)
sw sw sw sw sw sw
Rate
Value
I = RxV
sw sw
R= I \ V sw sw sw
V=I\R sw sw sw sw
VIF - ans-Value = Income x Factor
sw sw sw sw sw sw
Income = Value \ Factor sw sw sw sw
Factor = Value \ Income sw sw sw sw
, One of the three approaches to value in which the appraiser derives a value indication by c
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
onverting anticipated benefits through ownership of income- sw sw sw sw sw sw
producing property is the what approach? - ans-Income sw sw sw sw sw sw sw
The economic principle of ______________
sw sw sw sw
states that value is created by the expectation of benefits to be derived in the future. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Anticipation
The economic principle of ______________
sw sw sw sw
states that a property's maximum value tends to be set by the lowest cost or price at which
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
another property of equivalent utility can be acquired. - ans-Substitution
sw sw sw sw sw sw sw sw sw
The ________ rate reflects the return of the investment in the wasting asset. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Recapture
Competition is created by the potential for profits. However, competition among sellers ma
sw sw sw sw sw sw sw sw sw sw sw sw
y lead to an ______________, which reduces prices and profits. Competition among buye
sw sw sw sw sw sw sw sw sw sw sw sw
rs may lead to ______________, which increases prices and profits to sellers. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw
over supply sw
shortage
A mortgage on personal property is termed a ___________ mortgage. - ans-Chattel
sw sw sw sw sw sw sw sw sw sw sw
A ____________ is called a second mortgage. - ans-Junior
sw sw sw sw sw sw sw sw
Four (five) types of mortgages according to the repayment provisions. - ans-1. Amortized
sw sw sw sw sw sw sw sw sw sw sw sw sw
2. Variable
sw
3. Straight
sw
4. Partial Amortized (balloon)
sw sw sw
5. Reversesw
A payment on the balance due of a note at the end of the loan term that is in excess of the r
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
egular repayment amount is called a _______________? - ans-Balloon
sw sw sw sw sw sw sw sw
A __________mortgage real estate as well as personal property included with the real est
sw sw sw sw sw sw sw sw sw sw sw sw sw
ate. - ans-Package sw sw
The __________ rate reflects the return ON the investment. - ans-
sw sw sw sw sw sw sw sw sw sw
Overall yield or discount sw sw sw
The ______________ rate reflects the relationship between the real estate taxes and the
sw sw sw sw sw sw sw sw sw sw sw sw sw
value of the property. - ans-Effective tax rate
sw sw sw sw sw sw sw
To obtain the value using the IRV formula, one must _________ the income by the rate. -
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Divide
sw
Value is created by the expectation of benefits to be derived in the future. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Anticipation
The prices, rents, and rates of return of property tend to be set by the current prices, rents,
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
and rates of return for equally desirable substitute properties. - ans-Substitution
sw sw sw sw sw sw sw sw sw sw
The most profitable price which a property should bring in a competitive and open market
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
knowledgeably, and assuming the price is not affected by undue stimulus. - ans- sw sw sw sw sw sw sw sw sw sw sw sw
Market Value sw
The worth of an investment property to a particular investor. Investment value may or may
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
not coincide with market value depending on the requirements of the specific investor. -
sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Investment value
sw sw
1. All investors want a return ON their investment - ans-Overall yield or Discount rate
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
All investors want a return OF their investment. - ans-Recapture rate
sw sw sw sw sw sw sw sw sw sw
Can be positive, negative or neutral. - ans-Leverage
sw sw sw sw sw sw sw
Mortgage only on personal property. - ans-Chattel sw sw sw sw sw sw
What is also known as the discount rate, reflects the return on investment? - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Overall yield rate (Yo) sw sw sw
IRV - ans-Income NOI (net operating income)
sw sw sw sw sw sw
Rate
Value
I = RxV
sw sw
R= I \ V sw sw sw
V=I\R sw sw sw sw
VIF - ans-Value = Income x Factor
sw sw sw sw sw sw
Income = Value \ Factor sw sw sw sw
Factor = Value \ Income sw sw sw sw
, One of the three approaches to value in which the appraiser derives a value indication by c
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
onverting anticipated benefits through ownership of income- sw sw sw sw sw sw
producing property is the what approach? - ans-Income sw sw sw sw sw sw sw
The economic principle of ______________
sw sw sw sw
states that value is created by the expectation of benefits to be derived in the future. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Anticipation
The economic principle of ______________
sw sw sw sw
states that a property's maximum value tends to be set by the lowest cost or price at which
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
another property of equivalent utility can be acquired. - ans-Substitution
sw sw sw sw sw sw sw sw sw
The ________ rate reflects the return of the investment in the wasting asset. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Recapture
Competition is created by the potential for profits. However, competition among sellers ma
sw sw sw sw sw sw sw sw sw sw sw sw
y lead to an ______________, which reduces prices and profits. Competition among buye
sw sw sw sw sw sw sw sw sw sw sw sw
rs may lead to ______________, which increases prices and profits to sellers. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw
over supply sw
shortage
A mortgage on personal property is termed a ___________ mortgage. - ans-Chattel
sw sw sw sw sw sw sw sw sw sw sw
A ____________ is called a second mortgage. - ans-Junior
sw sw sw sw sw sw sw sw
Four (five) types of mortgages according to the repayment provisions. - ans-1. Amortized
sw sw sw sw sw sw sw sw sw sw sw sw sw
2. Variable
sw
3. Straight
sw
4. Partial Amortized (balloon)
sw sw sw
5. Reversesw
A payment on the balance due of a note at the end of the loan term that is in excess of the r
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
egular repayment amount is called a _______________? - ans-Balloon
sw sw sw sw sw sw sw sw
A __________mortgage real estate as well as personal property included with the real est
sw sw sw sw sw sw sw sw sw sw sw sw sw
ate. - ans-Package sw sw
The __________ rate reflects the return ON the investment. - ans-
sw sw sw sw sw sw sw sw sw sw
Overall yield or discount sw sw sw
The ______________ rate reflects the relationship between the real estate taxes and the
sw sw sw sw sw sw sw sw sw sw sw sw sw
value of the property. - ans-Effective tax rate
sw sw sw sw sw sw sw
To obtain the value using the IRV formula, one must _________ the income by the rate. -
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Divide
sw
