IAAO 102 - Income Approach to Valuation
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Practice questions for this set
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5 methods of developing an overall cap rate (Ro)
Choose an answer
1 5 methods of calculating depreciation
2 5 sources of comparable sales data
Derivation from comparable sales, band of investment (mortgage & equity
3 components), net income ratio, debt coverage ratio, band of investment (land &
improvement components)
4 5 types of property insurance policies
Don't know?
, Terms in this set (102)
One of three approaches to value in Income
which the appraiser derives a value
indication by converting anticipated
benefits through ownership of
income-producing property is the
______ approach.
The economic principle of ______ states Anticipation
that value is created by the
expectation of benefits to be derived
in the future.
The economic principle of _____ states Substitution
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.
Competition is created by the Oversupply; shortage
potential for profits. However,
competition among sellers may lead
to a/an
_______, which reduces prices and
profits. Competition among buyers
may lead to ________, which increases
prices and profits to sellers
The _____ rate reflects the return of the Recapture
investment in the wasting asset.
|questions and answers
Save
Practice questions for this set
Learn 1/7 Study with Learn
5 methods of developing an overall cap rate (Ro)
Choose an answer
1 5 methods of calculating depreciation
2 5 sources of comparable sales data
Derivation from comparable sales, band of investment (mortgage & equity
3 components), net income ratio, debt coverage ratio, band of investment (land &
improvement components)
4 5 types of property insurance policies
Don't know?
, Terms in this set (102)
One of three approaches to value in Income
which the appraiser derives a value
indication by converting anticipated
benefits through ownership of
income-producing property is the
______ approach.
The economic principle of ______ states Anticipation
that value is created by the
expectation of benefits to be derived
in the future.
The economic principle of _____ states Substitution
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.
Competition is created by the Oversupply; shortage
potential for profits. However,
competition among sellers may lead
to a/an
_______, which reduces prices and
profits. Competition among buyers
may lead to ________, which increases
prices and profits to sellers
The _____ rate reflects the return of the Recapture
investment in the wasting asset.
