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IAAO TEST VERSION 4 EXAM LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
A residence has an RCN of $200,000. Items classified as curable
physical deterioration have an RCN of $10,000 and a cost to cure
of $12,000. Incurable physical deterioration (short-lived items)
have an RCN of $40,000 and a depreciation amount of $18,000.
The actual age for the residence is 6 years, and the total useful
life is 60 years. What is the total amount of physical deterioration
for the residence? - ANSWERS-45,000
When a direct method of measuring depreciation is used, the loss
of value attributable to external obsolescence is measured by: -
ANSWERS-The cost to cure
Incurable physical deterioration is measured using the ______
method. - ANSWERS-Age-life
______ obsolescence is a loss in value resulting from a decrease
in utility and desirability caused by factors outside the property's
boundaries. - ANSWERS-External
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The principle of ______ states that market value is never constant
because physical (environmental), governmental, social, and
economic forces are at work, affecting the property. - ANSWERS-
Change
Which principle holds that the value of a property tends to be set
by the price that would be paid to acquire a property of similar
utility and desirability within a reasonable amount of time? -
ANSWERS-Substitution
The underlying principle in the adjustment process in the sales
comparison approach is the Principle of _________. -
ANSWERS-Contribution
The disadvantage of the sales comparison approach is: -
ANSWERS-It usually cannot be used to value special purpose of
one-of-a-kind properties with limited sales data
A major advantage to the sales comparison approach is: -
ANSWERS-It reflects the actions of the marketplace
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Which is the correct formula for the Sales Comparison Approach?
- ANSWERS-V = Sc (+ or -) Adjc
In defining the appraisal problem, which is the first thing an
appraiser should do? - ANSWERS-Identify the property
When making adjustments and selecting the best estimate of
value, choose: - ANSWERS-Properties with the fewest total
adjustments and similar magnitude of adjustments
The first adjustment in the sales comparison approach is: -
ANSWERS-Financing
Which is the correct order of adjustments in the sales comparison
approach? - ANSWERS-Financing, market conditions (time of
sale), location and other physical characteristics
IAAO TEST VERSION 4 EXAM LATEST 2026-2027 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
A residence has an RCN of $200,000. Items classified as curable
physical deterioration have an RCN of $10,000 and a cost to cure
of $12,000. Incurable physical deterioration (short-lived items)
have an RCN of $40,000 and a depreciation amount of $18,000.
The actual age for the residence is 6 years, and the total useful
life is 60 years. What is the total amount of physical deterioration
for the residence? - ANSWERS-45,000
When a direct method of measuring depreciation is used, the loss
of value attributable to external obsolescence is measured by: -
ANSWERS-The cost to cure
Incurable physical deterioration is measured using the ______
method. - ANSWERS-Age-life
______ obsolescence is a loss in value resulting from a decrease
in utility and desirability caused by factors outside the property's
boundaries. - ANSWERS-External
,2|Page
The principle of ______ states that market value is never constant
because physical (environmental), governmental, social, and
economic forces are at work, affecting the property. - ANSWERS-
Change
Which principle holds that the value of a property tends to be set
by the price that would be paid to acquire a property of similar
utility and desirability within a reasonable amount of time? -
ANSWERS-Substitution
The underlying principle in the adjustment process in the sales
comparison approach is the Principle of _________. -
ANSWERS-Contribution
The disadvantage of the sales comparison approach is: -
ANSWERS-It usually cannot be used to value special purpose of
one-of-a-kind properties with limited sales data
A major advantage to the sales comparison approach is: -
ANSWERS-It reflects the actions of the marketplace
, 3|Page
Which is the correct formula for the Sales Comparison Approach?
- ANSWERS-V = Sc (+ or -) Adjc
In defining the appraisal problem, which is the first thing an
appraiser should do? - ANSWERS-Identify the property
When making adjustments and selecting the best estimate of
value, choose: - ANSWERS-Properties with the fewest total
adjustments and similar magnitude of adjustments
The first adjustment in the sales comparison approach is: -
ANSWERS-Financing
Which is the correct order of adjustments in the sales comparison
approach? - ANSWERS-Financing, market conditions (time of
sale), location and other physical characteristics
