IAAO 101 Exam Questions with Correct and Verified Answers

IAAO 101 Exam Questions with Correct and Verified Answers The basic responsibilities of the assessor are to _________ all taxable property. - Correct Answer A. List B. Value C. Discover D. All of the Above" "Which of the following is a basic right associated with the ownership of property? - Correct Answer A. to use B. to lease or rent C. to enter or leave D. All of the above" "In order for a property to have value, it must have utility, scarcity, desirability, and effective purchasing power. the economic forces that determine scarcity are_________________. - Correct Answer supply and demand" "___________ is the point at which the forces of supply and demand meet----the point of balance. - Correct Answer equilibrium" "A parcel identifier links ownership records, tax maps, and assessment records. Thus, the identifier must be - Correct Answer A. unique B. permanent C. simple D. All of the above" "Stratification is the first step in analyzing land sale, and the primary sort is by _______________. - Correct Answer market area" "A/an ___________ interest is ownership of all the rights in a property, except those reserved by the government, and with no private encumbrances. - Correct Answer fee simple" "In the appraisal process, data collection requires the assessor to collect - Correct Answer A. general data B. specific data C. comparative data D. All of the above" "Which of the following is not one of the four great forces by which value is created, maintained, modified or destroyed? - Correct Answer conceptual" "A ______________ may be defined as an area of complementary land uses in which all properties are similarly influenced by the four forces affecting value. - Correct Answer neighborhood" "What element of the marketplace is likely to contribute to a change in demand? - Correct Answer consumer expectations" "What element of the marketplace is likely to contribute to a change in supply? - Correct Answer entrepreneur expectations" "One of the steps an assessor must take in the discovery of property is to: - Correct Answer conduct periodic on-site inspections of properties" "The property tax is a/an _________________ tax, meaning it is based on value. - Correct Answer ad valorem" "Assume the following characteristics for a single-family residence: Actual value=$175,000; assessment level=20 percent; tax rate=92.8 mills. Calculate the property tax for the residence. - Correct Answer $3248.00" "If a tax rate is $13.30 per 100, the decimal equivalent would be - Correct Answer 0.1330" "______________ divided by the assessed value equals the tax rate. - Correct Answer Budget" "Assessment level times the tax rate equals the_____________________. - Correct Answer effective tax rate" "Given the following, compute a tax rate using dollars per hundred: Budget: $6,000,000 Market Value: $800,000,000 Assessment Level: 50% Non-property tax revenu: $1,000.000 - Correct Answer $1.25" "____________ is the physical land and everything permanently attached to it. - Correct Answer real estate" "Which of the following is a governmental restriction to the "bundle of rights"? - Correct Answer eminent domain" "A township in the Public Land Survey System contains _____ sections, with each section containing _____ acres. - Correct Answer 36 640" "The NE1/4NW1/4SE1/4SW1/4 contains _______ acres. - Correct Answer 2.5" "A land description system in which boundaries are described as distances between two semipermanent points or as lines following compass bearings is known as ____________________________. - Correct Answer metes and bounds descriptions" "The principle that states that market value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property is______________. - Correct Answer substitution" "The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates, and so on is - Correct Answer change" "The appropriate map scale for urban area is: - Correct Answer 1" - 100'" "A lot measures 242' x 1800'. What is the value of the lot if the land is worth $60,000 per acre? - Correct Answer $600,000" "The ________ unit would be appropriate unit when pedestrian access is an important consideration. - Correct Answer front foot" "When adjustments are being made to comparable sales, using percentage adjustments in the direct sales comparison approach, the sequence of adjustments the appraiser must follow is - Correct Answer financing, market conditions, location, physical characteristics" "The land valuation method that replicates the actions of subdividers or developers is known as the - Correct Answer anticipated use or development method" "The cost of producing a building or structure having the same utility but using modern materials, design, and workmanship is called __________________. - Correct Answer replacement cost" "Which of the following is a situation in which the cost approach is the most applicable in estimating value? - Correct Answer Valuing new or proposed construction for which the land value is well supported. Developing an opinion of the market or use value of special-purpose properties. Valuing properties for which building additions or renovations are being considered. All of the above" "What is not a characteristic of cost? - Correct Answer land value" "What is not an indirect cost? - Correct Answer supervision" "What is the easiest, fastest, and most widely used method of estimating cost? - Correct Answer comparative unit" "An indirect method of measuring depreciation is the___________________________. - Correct Answer sales comparison method" "When a cost manual is being used, which one of the following components is not included in the inventory of physical characteristics for the building? - Correct Answer heating and cooling porches current condition location" "The underlying principle in the adjustment process in the sales comparison approach is the Principle of ___________. - Correct Answer Contribution" "You are analyzing resales to determine a time adjustment. You have found a sale that sold 18 months ago for $200,000 and sold again 8 months ago for $220,000. Based on this sale, the monthly adjustment for time would be - Correct Answer 1%" "Which approach to value is premised on the Principle of Substitution? - Correct Answer A. Cost Approach B. Sales comparison approach C. Income approach All of the above" "The Principle of _______ states that market vale is never constant because environmental, governmental, social and economic forces are at work influencing the property and its environment. - Correct Answer change" "Which of the following is not an appropriate unit of comparison when multiple-unit residential properties are being appraised? - Correct Answer Price per room price per square foot GIM Price per cubic foot" "The cost of building an exact replica of a building is called _____________. - Correct Answer reproduction cost" "When a direct method of measuring depreciation is used, the loss of value attributable to external obsolescence is measured by______________________________ - Correct Answer Capitalizing an actual or estimated rent loss using a GRM, multiplied by the building portion of the land-to-building ration." "When a property experiences functional obsolescence, it_______________________________. - Correct Answer Is usually the result of diminished utility within the building." "The cost estimation method that is considered the most accurate but is also the most time-consuming is the ____________________________. - Correct Answer Quantity survey method" "The first adjustment in the sales comparison approach is _____________. - Correct Answer financing" "When the interaction of supply and demand is being analyzed, which of the following influences demand? - Correct Answer local services" "Which of the following is a method that can be used to determine the adjustments in the sales comparison approach? - Correct Answer Paired sales analysis Multiple regression analysis Depreciated cost All of the above"