IAAO 102 PROPERTY ASSESSMENT
STANDARDS DATA COLLECTION AND
ANALYSIS ASSESSMENT REVIEW GUIDE
●● How much will it cost?
How much will I get back?
When will is get it back?
What are the risks?
What is the return of real estate investment compared to other
investments with similar risks?
Answer: Real estate competes with other investments for the investor's
dollar. As an investor analyzes various opportunities, what will they
consider?
●● Anticipation
Answer: The economic principle of _____________ states that value is
created by expectation of benefits to be derived in the future.
●● Substitution
Answer: The economic principle of _____________ states that a
property's maximum value tends to be set by the lowest cost or price at
which another property of equivalent utility can be acquired.
, ●● oversupply, shortages
Answer: Competition is created by the potential profits. However,
competition among sellers may lead to an _____________, which
reduces prices and profits. Competition among buyers may lead to
____________, which increases prices and profits to sellers.
●● Recapture
Answer: The _______________ rate reflects the return of the investment
in the wasting asset.
●● safety of investment, size, holding period, appreciation, leverage,
liquidity, use of collateral, management, income tax advantages
Answer: List the nine factors influencing investor decisions.
●● Positive
Answer: ____________ leverage is achieved when funds are invested in
property, which has a higher rate of return than the cost of borrowed
funds.
●● Mortgage, cash, trust deed, contract for deed (land contract)
Answer: four most common methods of financing real estate are:
●● Chattel
STANDARDS DATA COLLECTION AND
ANALYSIS ASSESSMENT REVIEW GUIDE
●● How much will it cost?
How much will I get back?
When will is get it back?
What are the risks?
What is the return of real estate investment compared to other
investments with similar risks?
Answer: Real estate competes with other investments for the investor's
dollar. As an investor analyzes various opportunities, what will they
consider?
●● Anticipation
Answer: The economic principle of _____________ states that value is
created by expectation of benefits to be derived in the future.
●● Substitution
Answer: The economic principle of _____________ states that a
property's maximum value tends to be set by the lowest cost or price at
which another property of equivalent utility can be acquired.
, ●● oversupply, shortages
Answer: Competition is created by the potential profits. However,
competition among sellers may lead to an _____________, which
reduces prices and profits. Competition among buyers may lead to
____________, which increases prices and profits to sellers.
●● Recapture
Answer: The _______________ rate reflects the return of the investment
in the wasting asset.
●● safety of investment, size, holding period, appreciation, leverage,
liquidity, use of collateral, management, income tax advantages
Answer: List the nine factors influencing investor decisions.
●● Positive
Answer: ____________ leverage is achieved when funds are invested in
property, which has a higher rate of return than the cost of borrowed
funds.
●● Mortgage, cash, trust deed, contract for deed (land contract)
Answer: four most common methods of financing real estate are:
●● Chattel
