IAAO 102: Income with 100% correct answers

Rate times Value Income equals The basis for the Income Approach Anticipation Income divided by Value Rate equals Income divided by Rate Value equals One of the three approaches to value in which the appraiser derives a value indication by converting anticipated benefits through ownership of income-producing property. Income approach The economic principle that states that value is created by the expectation of benefits to be derived in the future. Anticipation The economic principle that states that a property's maximum value tends to be set you the lowest cost or price at which another property of equivalent utility can be acquired. Substitution The value of a component of real estate can be measured by the amount it contributes to net operating income because net operation income because net operating income can be capitalized into value. Contribution The amount of product that producers are willing Ana able to sell under various conditions during a given period. Suply The amount of product buyers are willing and able to buy during some periods, given the choices available to them. Demand The most probable 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, and assuming the price is not affected by undue stimulus. Market value Return OF their investment Recapture rate Return ON their investment Discount or Overall Yield Borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds. Leverage The base rate on the safest investment such as government insured investments. Safe rate