IAAO 112|100 Questions with 100% Correct Answers | Verified | Updated 2024

Potential Gross Income - ️️Annual gross income Market rent - ️️The rental income a property would most probably command in the open market Balance - ️️The principle that real property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibrium. (Value is maximized when the 4 agents of production are in their proper allocation.) Conformity - ️️States that overall,the prices of an area will be maximized if structures are conforming Progression - ️️(Under conformity) Is the concept that the value of an inferior property is enhanced by its association with better properties. Regression - ️️(Under conformity) Is the concept that the value of a superior property is adversely affected by its association with an inferior property of the same type. Opportunity cost - ️️The cost of options foregone or opportunities not chosen. The selection of an investment means an alternative was not selected. Substitution - ️️The appraisal principle that states when several similar or alternative commodities, goods, or services are available, the one with the lowest price will attract the greatest demand H&BU fact - ️️As long as the value of the property "as improved" is greater than the value of the site "as vacant"; the highest and best use is usually the current use. If the highest and best use of the