IAAO 101 PRACTICE TESTS
QUESTIONS AND ANSWERS
List the four tests that the appraiser must make in the analysis of the highest and best use.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
- ans-1. Legally Permissible
sw sw sw
2. Physically Possible
sw sw
3. Financially Feasible
sw sw
4. Most Productive
sw sw
_______ ________ is a parcel of land and any structures or improvements that are perma
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
nently affixed thereto. - ans-Real Estate
sw sw sw sw sw
Property is considered ________ if it can be moved without causing any damage or chang
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e to either the item of property or the structure to which it is attached. - ans-Personal
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Assessment level times the tax rate equals the ________ ______ ______. - ans- sw sw sw sw sw sw sw sw sw sw sw sw
Effective Tax Rate sw sw
The property tax is a/an ____ _______ tax, meaning it is based on the value. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Ad Volorem sw
The assessor is responsible for the _______, ________, and __________ of all taxable pr
sw sw sw sw sw sw sw sw sw sw sw sw sw
operty. - ans-Discovery, Listing, Valuation
sw sw sw sw
The taxable location of personal property is referred to as its ________. - ans-Situs
sw sw sw sw sw sw sw sw sw sw sw sw sw
An estimate of value, usually in writing, of an adequately described property, as of a given
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
date, is termed a/an _______________. - ans-Appraisal
sw sw sw sw sw sw
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he property tax by the ________ ____________ _______ of the taxing jursidiction. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw
Revenue or Budget/Total Assessed Value sw sw sw sw
The type of value usually estimated by the assessor is __________ value. - ans-Market
sw sw sw sw sw sw sw sw sw sw sw sw sw
The ____________ ____ _______ reflects the ratio between the current tax bull and the p
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
roperty value. - ans-Effective Tax Rate
sw sw sw sw sw
In order for a property to have value, it must have __________, ___________, _________
sw sw sw sw sw sw sw sw sw sw sw sw sw
_______, and ______________ _____________ __________. - ans-
sw sw sw sw sw sw
Utility, Scarcity, Desirability, Effective Purchasing Power
sw sw sw sw sw
,The use that generates the highest net return to a property over a reasonable time period i
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
s called its __________ ___ _____ ___. - ans-Highest and Best Use
sw sw sw sw sw sw sw sw sw sw sw
The principle of _______ states that maximum value of a neighborhood is attained when t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he uses of land are perfectly complementary. - ans-Balance
sw sw sw sw sw sw sw sw
Which appraisal principle affirms that land cannot be valued on the basis of one use while i
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
mprovements are valued on the basis of another? - ans-Consistent Use sw sw sw sw sw sw sw sw sw sw
_____________ is the point at which the forces of supply and forces of demand meet. - sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Equilibrium
sw
List the two types of highest and best use analysis. - ans-1. As If Vacant
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
2. As If Improved
sw sw sw
The typical life cycle of a neighborhood includes ______, ________, _________, and ___
sw sw sw sw sw sw sw sw sw sw sw sw
__________. - ans-Growth, Stability, Decline, Revitalization sw sw sw sw sw
What elements of the marketplace are most likely to contribute to a change in demand? -
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-1. Consumer Taste/Preferences
sw sw sw
2. Consumer Income
sw sw
3. Price of Related Commodities
sw sw sw sw
4. Consumer Expectations
sw sw
5. Price of the Commodity
sw sw sw sw
Market value is defined as the most probable price of a property in terms of money, assum
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ing
A. Buyer and seller are typically motivated.
sw sw sw sw sw sw
B. A reasonable time is allowed for exposure in the open market.
sw sw sw sw sw sw sw sw sw sw sw
C. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements c
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
omparable thereto. sw
D. All of the above - ans-D. All of the above
sw sw sw sw sw sw sw sw sw sw
_______ refers to the amount of goods that producers are willing to sell at a given price du
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ring a specified time period. - ans-Supply
sw sw sw sw sw sw
Ownership of all legal rights to property is limited by government in four ways: - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
1. Taxation
sw
2. Eminent Domain
sw sw
3. Police Power
sw sw
4. Escheatsw
The seven steps of the appraisal process are: - ans-1. Definition of the Problem
sw sw sw sw sw sw sw sw sw sw sw sw sw
2. Scope of Work
sw sw sw
3. Preliminary Survey & Analysis
sw sw sw sw
4. Data Collection & Analysis
sw sw sw sw
, 5. Highest & Best Use Analysis
sw sw sw sw sw
6. Application of Data & Approaches
sw sw sw sw sw
7. Correlation/Reconciliation to Final Value
sw sw sw sw
The basis for the adjustments in the sales comparison approach to value is the principle of
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
______________. - ans-Contribution
w sw sw
_______ __ ___ represents the value of property for a specific use. - ans-Value in Use
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
List any two types of private encumbrances that can be placed on ownership of real proper
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ty. - ans-1. Leases
sw sw sw
2. Mortgages
sw
The principle of __________ states that value is created by the expected future benefits to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
be derived from the property. - ans-Anticipation
w sw sw sw sw sw sw
The six basic rights associated with property are as follows: - ans-1. Sell
sw sw sw sw sw sw sw sw sw sw sw sw
2. Lease/Rent
sw
3. Use sw
4. Give Away
sw sw
5. Enter/Leave
sw
6. Refusesw
The ownership of all legal rights to property is known as ___ ______. - ans-Fee Simple
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Determining the identity of the property to be appraised is a part of the ______ step in the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
appraisal process. - ans-First sw sw sw
The three types of boundaries used to delineate neighborhoods are ________, ________
sw sw sw sw sw sw sw sw sw sw sw
__, and ____________. - ans-Natural, Political, Man-Made
sw sw sw sw sw sw
Under the step in the appraisal process that is termed data collection and analysis, specifi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
c data include
sw sw
A. Physical data
sw sw
B. Sales data
sw sw
C. Site data
sw sw
D. Economic data - ans-C. Site data
sw sw sw sw sw sw
The four forces that influence value and must be considered in neighborhood analysis are
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
as follows: - ans-1. Physical (Environmental)
sw sw sw sw sw
2. Economic
sw
3. Governmental
sw
4. Socialsw
The typical life cycle of a neighborhood can be extended or shortened by changes in ____
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
______ factors. - ans-Economic sw sw sw
QUESTIONS AND ANSWERS
List the four tests that the appraiser must make in the analysis of the highest and best use.
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
- ans-1. Legally Permissible
sw sw sw
2. Physically Possible
sw sw
3. Financially Feasible
sw sw
4. Most Productive
sw sw
_______ ________ is a parcel of land and any structures or improvements that are perma
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
nently affixed thereto. - ans-Real Estate
sw sw sw sw sw
Property is considered ________ if it can be moved without causing any damage or chang
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
e to either the item of property or the structure to which it is attached. - ans-Personal
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Assessment level times the tax rate equals the ________ ______ ______. - ans- sw sw sw sw sw sw sw sw sw sw sw sw
Effective Tax Rate sw sw
The property tax is a/an ____ _______ tax, meaning it is based on the value. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Ad Volorem sw
The assessor is responsible for the _______, ________, and __________ of all taxable pr
sw sw sw sw sw sw sw sw sw sw sw sw sw
operty. - ans-Discovery, Listing, Valuation
sw sw sw sw
The taxable location of personal property is referred to as its ________. - ans-Situs
sw sw sw sw sw sw sw sw sw sw sw sw sw
An estimate of value, usually in writing, of an adequately described property, as of a given
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
date, is termed a/an _______________. - ans-Appraisal
sw sw sw sw sw sw
A jurisdiction's tax rate is determined by dividing the ______________ to be derived from t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he property tax by the ________ ____________ _______ of the taxing jursidiction. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw
Revenue or Budget/Total Assessed Value sw sw sw sw
The type of value usually estimated by the assessor is __________ value. - ans-Market
sw sw sw sw sw sw sw sw sw sw sw sw sw
The ____________ ____ _______ reflects the ratio between the current tax bull and the p
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
roperty value. - ans-Effective Tax Rate
sw sw sw sw sw
In order for a property to have value, it must have __________, ___________, _________
sw sw sw sw sw sw sw sw sw sw sw sw sw
_______, and ______________ _____________ __________. - ans-
sw sw sw sw sw sw
Utility, Scarcity, Desirability, Effective Purchasing Power
sw sw sw sw sw
,The use that generates the highest net return to a property over a reasonable time period i
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
s called its __________ ___ _____ ___. - ans-Highest and Best Use
sw sw sw sw sw sw sw sw sw sw sw
The principle of _______ states that maximum value of a neighborhood is attained when t
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
he uses of land are perfectly complementary. - ans-Balance
sw sw sw sw sw sw sw sw
Which appraisal principle affirms that land cannot be valued on the basis of one use while i
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
mprovements are valued on the basis of another? - ans-Consistent Use sw sw sw sw sw sw sw sw sw sw
_____________ is the point at which the forces of supply and forces of demand meet. - sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-Equilibrium
sw
List the two types of highest and best use analysis. - ans-1. As If Vacant
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
2. As If Improved
sw sw sw
The typical life cycle of a neighborhood includes ______, ________, _________, and ___
sw sw sw sw sw sw sw sw sw sw sw sw
__________. - ans-Growth, Stability, Decline, Revitalization sw sw sw sw sw
What elements of the marketplace are most likely to contribute to a change in demand? -
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ans-1. Consumer Taste/Preferences
sw sw sw
2. Consumer Income
sw sw
3. Price of Related Commodities
sw sw sw sw
4. Consumer Expectations
sw sw
5. Price of the Commodity
sw sw sw sw
Market value is defined as the most probable price of a property in terms of money, assum
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ing
A. Buyer and seller are typically motivated.
sw sw sw sw sw sw
B. A reasonable time is allowed for exposure in the open market.
sw sw sw sw sw sw sw sw sw sw sw
C. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements c
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
omparable thereto. sw
D. All of the above - ans-D. All of the above
sw sw sw sw sw sw sw sw sw sw
_______ refers to the amount of goods that producers are willing to sell at a given price du
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ring a specified time period. - ans-Supply
sw sw sw sw sw sw
Ownership of all legal rights to property is limited by government in four ways: - ans-
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
1. Taxation
sw
2. Eminent Domain
sw sw
3. Police Power
sw sw
4. Escheatsw
The seven steps of the appraisal process are: - ans-1. Definition of the Problem
sw sw sw sw sw sw sw sw sw sw sw sw sw
2. Scope of Work
sw sw sw
3. Preliminary Survey & Analysis
sw sw sw sw
4. Data Collection & Analysis
sw sw sw sw
, 5. Highest & Best Use Analysis
sw sw sw sw sw
6. Application of Data & Approaches
sw sw sw sw sw
7. Correlation/Reconciliation to Final Value
sw sw sw sw
The basis for the adjustments in the sales comparison approach to value is the principle of
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
______________. - ans-Contribution
w sw sw
_______ __ ___ represents the value of property for a specific use. - ans-Value in Use
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
List any two types of private encumbrances that can be placed on ownership of real proper
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ty. - ans-1. Leases
sw sw sw
2. Mortgages
sw
The principle of __________ states that value is created by the expected future benefits to
sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
be derived from the property. - ans-Anticipation
w sw sw sw sw sw sw
The six basic rights associated with property are as follows: - ans-1. Sell
sw sw sw sw sw sw sw sw sw sw sw sw
2. Lease/Rent
sw
3. Use sw
4. Give Away
sw sw
5. Enter/Leave
sw
6. Refusesw
The ownership of all legal rights to property is known as ___ ______. - ans-Fee Simple
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Determining the identity of the property to be appraised is a part of the ______ step in the
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
appraisal process. - ans-First sw sw sw
The three types of boundaries used to delineate neighborhoods are ________, ________
sw sw sw sw sw sw sw sw sw sw sw
__, and ____________. - ans-Natural, Political, Man-Made
sw sw sw sw sw sw
Under the step in the appraisal process that is termed data collection and analysis, specifi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
c data include
sw sw
A. Physical data
sw sw
B. Sales data
sw sw
C. Site data
sw sw
D. Economic data - ans-C. Site data
sw sw sw sw sw sw
The four forces that influence value and must be considered in neighborhood analysis are
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
as follows: - ans-1. Physical (Environmental)
sw sw sw sw sw
2. Economic
sw
3. Governmental
sw
4. Socialsw
The typical life cycle of a neighborhood can be extended or shortened by changes in ____
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
______ factors. - ans-Economic sw sw sw
