IAAO 112 Exam with accurate detailed ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
solutions
appraisal process - correct answer✔✔The is a systematic, logical method of collecting, ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
analyzing, and processing data into value estimates. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Definition of the problem - correct answer✔✔is the first step in the appraisal process. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The ___________ of an appraisal is usually to estimate an opinion of a type of value,
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
most often __________ value. - correct answer✔✔purpose, market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The type and extent of research and analyses in an appraisal or appraisal review
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
assignment is referred to as the _____________ - correct answer✔✔scope of work. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
In order to determine the appropriate scope of work an appraiser must properly
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
______________ to be solved. - correct answer✔✔define (or identify) the problem ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The four tests performed to determine the highest and best use of a property are: - correct
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
answer✔✔physical possibility, legal permissibility, financial feasibility, and maximum
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
productivity.
7. All three approaches to value, the Cost Approach, the Sales Comparison Approach,
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and the Income Approach must be developed in every appraisal. True or False - correct
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
answer✔✔False
8. The worth of an investment property to a particular investor is:
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Value in use
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b. Value in exchange
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c. Investment value
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, d. Market value - correct answer✔✔c. Investment value
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The results of deducting expected vacancy and collection losses from potential gross rent
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and then adding miscellaneous income is:
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a. Net operating income
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b. Fair rental value
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c. Expense ratio
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d. Effective gross income - correct answer✔✔d. Effective gross income
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Which capitalization method or methods uses the IRV equations:
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Direct capitalization
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b. Yield capitalization
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c. Both ||//\\|| ||//\\||
d. Neither - correct answer✔✔c. Both
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Investment criteria includes all but: ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Profit ||//\\||
b. Risk ||//\\|| ||//\\||
c. Supplies||//\\|| ||//\\||
d. Illiquidity - correct answer✔✔c. Supplies
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Investors are looking for a return ___ and a return ___ their capital. - correct answer✔✔of ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and on
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Which of the following is NOT a return on rate? ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Interest rate
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b. Discount rate
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C. Yield rate ||//\\|| ||//\\|| ||//\\||
solutions
appraisal process - correct answer✔✔The is a systematic, logical method of collecting, ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
analyzing, and processing data into value estimates. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Definition of the problem - correct answer✔✔is the first step in the appraisal process. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The ___________ of an appraisal is usually to estimate an opinion of a type of value,
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
most often __________ value. - correct answer✔✔purpose, market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The type and extent of research and analyses in an appraisal or appraisal review
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
assignment is referred to as the _____________ - correct answer✔✔scope of work. ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
In order to determine the appropriate scope of work an appraiser must properly
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
______________ to be solved. - correct answer✔✔define (or identify) the problem ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The four tests performed to determine the highest and best use of a property are: - correct
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
answer✔✔physical possibility, legal permissibility, financial feasibility, and maximum
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
productivity.
7. All three approaches to value, the Cost Approach, the Sales Comparison Approach,
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and the Income Approach must be developed in every appraisal. True or False - correct
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
answer✔✔False
8. The worth of an investment property to a particular investor is:
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Value in use
||//\\|| ||//\\|| ||//\\|| ||//\\||
b. Value in exchange
||//\\|| ||//\\|| ||//\\|| ||//\\||
c. Investment value
||//\\|| ||//\\|| ||//\\||
, d. Market value - correct answer✔✔c. Investment value
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
The results of deducting expected vacancy and collection losses from potential gross rent
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and then adding miscellaneous income is:
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Net operating income
||//\\|| ||//\\|| ||//\\|| ||//\\||
b. Fair rental value
||//\\|| ||//\\|| ||//\\|| ||//\\||
c. Expense ratio
||//\\|| ||//\\|| ||//\\||
d. Effective gross income - correct answer✔✔d. Effective gross income
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Which capitalization method or methods uses the IRV equations:
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Direct capitalization
||//\\|| ||//\\|| ||//\\||
b. Yield capitalization
||//\\|| ||//\\|| ||//\\||
c. Both ||//\\|| ||//\\||
d. Neither - correct answer✔✔c. Both
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Investment criteria includes all but: ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Profit ||//\\||
b. Risk ||//\\|| ||//\\||
c. Supplies||//\\|| ||//\\||
d. Illiquidity - correct answer✔✔c. Supplies
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Investors are looking for a return ___ and a return ___ their capital. - correct answer✔✔of ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
and on
||//\\|| ||//\\||
Which of the following is NOT a return on rate? ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
a. Interest rate
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b. Discount rate
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C. Yield rate ||//\\|| ||//\\|| ||//\\||
