IAAO 102 ACTUAL EXAM | COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
Income Approach - (answer)One of three approaches to value in which the appraiser derived a
value indication by converting anticipated benefits through ownership of income producing
property is the ________________
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 - (answer)A mortgage on personal property is termed a ______________ mortgage
Junior - (answer)A ___________ mortgage is also called a second mortgage
Amortized, straight, reverse, partially amortized - (answer)four types of mortgages classified
according to repayment provisions
Balloon - (answer)A payment on the balance due of a note at the end of the loan term that is in
excess of the regular payment amounts is called a ______________ payment
Package - (answer)A ______________ mortgage covers real estate as well as personal property
included with the real estate
Amount borrowed, term, interest paid, frequency of payment - (answer)Four variables in real
estate financing that affect the mortgage payment are:
overall yield - (answer)rate (or discount rate) reflects the return on the investment
SOLUTIONS| 2026 LATEST UPDATED| A+
Income Approach - (answer)One of three approaches to value in which the appraiser derived a
value indication by converting anticipated benefits through ownership of income producing
property is the ________________
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 - (answer)A mortgage on personal property is termed a ______________ mortgage
Junior - (answer)A ___________ mortgage is also called a second mortgage
Amortized, straight, reverse, partially amortized - (answer)four types of mortgages classified
according to repayment provisions
Balloon - (answer)A payment on the balance due of a note at the end of the loan term that is in
excess of the regular payment amounts is called a ______________ payment
Package - (answer)A ______________ mortgage covers real estate as well as personal property
included with the real estate
Amount borrowed, term, interest paid, frequency of payment - (answer)Four variables in real
estate financing that affect the mortgage payment are:
overall yield - (answer)rate (or discount rate) reflects the return on the investment
