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IAAO 101 – Fundamentals of Real Property Appraisal
Exam ACTUAL EXAM COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR
IAAO 101 – Fundamentals of Real Property Appraisal
Exam with Rationales
Exam Coverage Areas
The IAAO 101 Fundamentals of Real Property Appraisal exam typically evaluates knowledge in
the following areas:
• Property tax administration and ad valorem taxation
• Roles and responsibilities of the assessor
• Basic appraisal principles and economic concepts
• Highest and best use analysis
• Property rights and government restrictions
• Market analysis and neighborhood analysis
• Land description and parcel identification systems
• Land valuation methods
• Sales comparison approach
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• Cost approach and depreciation
• Assessment ratios, tax rates, and effective tax rates
• Data collection and analysis in appraisal
QUESTIONS 1–50
1. What does the term ad valorem mean?
A. Based on ownership
B. According to value
C. Based on land size
D. Based on improvements
Answer: B
Rationale: Ad valorem is a Latin phrase meaning “according to value,” referring to taxes based
on property value.
2. Which of the following responsibilities belongs to the assessor?
A. Discovery of property
B. Listing of property
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C. Valuation of property
D. All of the above
Answer: D
Rationale: The assessor is responsible for discovery, listing, and valuation of taxable property.
3. The taxable location of personal property is called:
A. Situs
B. Zoning
C. Jurisdiction
D. Boundary
Answer: A
Rationale: Situs refers to the taxable location of personal property.
4. An estimate of value in writing for a property at a given date is known as:
A. Assessment
B. Valuation
C. Appraisal
D. Market study
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Answer: C
Rationale: An appraisal is a written estimate of property value as of a specific date.
5. The formula used to determine a jurisdiction's tax rate is:
A. Budget ÷ assessed value
B. Assessed value ÷ market value
C. Budget – assessed value
D. Market value ÷ budget
Answer: A
Rationale: Tax rate = (Budget – non-property tax revenue) ÷ assessed value.
6. What type of value is typically estimated by an assessor?
A. Replacement value
B. Book value
C. Market value
D. Salvage value
Answer: C
Rationale: Assessors generally estimate market value, the most probable selling price.
IAAO 101 – Fundamentals of Real Property Appraisal
Exam ACTUAL EXAM COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR
IAAO 101 – Fundamentals of Real Property Appraisal
Exam with Rationales
Exam Coverage Areas
The IAAO 101 Fundamentals of Real Property Appraisal exam typically evaluates knowledge in
the following areas:
• Property tax administration and ad valorem taxation
• Roles and responsibilities of the assessor
• Basic appraisal principles and economic concepts
• Highest and best use analysis
• Property rights and government restrictions
• Market analysis and neighborhood analysis
• Land description and parcel identification systems
• Land valuation methods
• Sales comparison approach
,Page 2 of 75
• Cost approach and depreciation
• Assessment ratios, tax rates, and effective tax rates
• Data collection and analysis in appraisal
QUESTIONS 1–50
1. What does the term ad valorem mean?
A. Based on ownership
B. According to value
C. Based on land size
D. Based on improvements
Answer: B
Rationale: Ad valorem is a Latin phrase meaning “according to value,” referring to taxes based
on property value.
2. Which of the following responsibilities belongs to the assessor?
A. Discovery of property
B. Listing of property
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C. Valuation of property
D. All of the above
Answer: D
Rationale: The assessor is responsible for discovery, listing, and valuation of taxable property.
3. The taxable location of personal property is called:
A. Situs
B. Zoning
C. Jurisdiction
D. Boundary
Answer: A
Rationale: Situs refers to the taxable location of personal property.
4. An estimate of value in writing for a property at a given date is known as:
A. Assessment
B. Valuation
C. Appraisal
D. Market study
, Page 4 of 75
Answer: C
Rationale: An appraisal is a written estimate of property value as of a specific date.
5. The formula used to determine a jurisdiction's tax rate is:
A. Budget ÷ assessed value
B. Assessed value ÷ market value
C. Budget – assessed value
D. Market value ÷ budget
Answer: A
Rationale: Tax rate = (Budget – non-property tax revenue) ÷ assessed value.
6. What type of value is typically estimated by an assessor?
A. Replacement value
B. Book value
C. Market value
D. Salvage value
Answer: C
Rationale: Assessors generally estimate market value, the most probable selling price.
