IAAO 102 CHAPTER 1 QUESTIONS AND ANSWERS

IAAO 102 CHAPTER 1 QUESTIONS
AND ANSWERS

INCOME APPROACH - ans- sw sw sw




VALUE BY CONVERTING ANTICIPATED BENEFITS THROUGH OWNERSHIP OF INC
sw sw sw sw sw sw sw sw




OME-PRODUCING PROPERTY sw




INVESTOR CONSIDERATIONS FOR REAL ESTATE - ans-
sw sw sw sw sw sw




1. HOW MUCH WILL IT COST?
sw sw sw sw sw




2. HOW MUCH WILL i GET BACK?
sw sw sw sw sw sw




3. WHEN WILL I GET IT BACK?
sw sw sw sw sw sw




4. WHAT ARE THE RISKS?
sw sw sw sw




5. WHAT IS THE RETURN OF A R.E. INVESTMENT COMPARED TO INVESTMENTS O
sw sw sw sw sw sw sw sw sw sw sw sw




F SIMILAR RISKS?
sw sw




ECONOMIC PRINCIPLE OF ANTICIPATION - ans- sw sw sw sw sw




VALUE CREATED BY EXPECTATION OF BENEFITS TO BE DERIVED IN THE FUTUR
sw sw sw sw sw sw sw sw sw sw sw




E

ECONOMIC PRINCIPLE OF SUBSTITUTION - ans- sw sw sw sw sw




PROPERTY'S MAXIMUM VALUE TENDS TO BE SET BY LOWEST COST AT WHICH A
sw sw sw sw sw sw sw sw sw sw sw sw




NOTHER PROPERTY OF EQUIVALENT UTILITY CAN BE ACQUIRED.
sw sw sw sw sw sw sw




OVERSUPPLY - ans- sw sw




COMPETITION AMONG SELLERS, WHICH REDUCES PRICES & PROFITS sw sw sw sw sw sw sw




SHORTAGE - ans- sw sw




COMPETITION AMONG BUYERS, WHICH INCREASES PRICES & PROFITS TO SELL sw sw sw sw sw sw sw sw sw




ERS

RECAPTURE RATE - ans- sw sw sw




REFLECTS THE RETURN OF THE INVESTMENT IN THE WASTING ASSET
sw sw sw sw sw sw sw sw sw




NINE FACTORS INFLUENCING BEHAVIOR OF INVESTORS - ans-
sw sw sw sw sw sw sw




1. SAFETY OF INVESTMENT
sw sw sw




2. SIZE OF INVESTMENT
sw sw sw




3. TIME
sw




4. APPRECIATION
sw




5. LEVERAGE
sw




6. LIQUIDITY OF INVESTMENT
sw sw sw