IAAO 101 Exam Study Guide Questions And Answers Verified 100% Correct

IAAO 101 Exam Study Guide Questions And Answers Verified 100% Correct The typical life cycle of a neighborhood can be extended or shortened by changes in? - ANSWER Economic factors What are the elements of supply? - ANSWER Cost of production, Price of other goods, Entrepreneur expectations, and number of sellers. The underlying principle for the three approaches to value is? - ANSWER Substitution What tool can help discover taxable properties? - ANSWER Adequate mapping system / Cadastral maps / GIS maps What is the formula for the tax rate? - ANSWER Budget - Other Revenue / Assessed Value What is Real Estate? - ANSWER Land and improvements permanently affixed to land. What is Real Property? - ANSWER Interests, benefits, and rights inherent in the ownership of land and anything permanently attached to the land or legally defined immovable. Also, the sum of tangible and intangible rights in land and improvements. What is value in use? - ANSWER The value of a property for a specific use. What is value in exchange? - ANSWER The amount an informed buyer would offer in exchange for a property under given market conditions. Cost, price, and value are not always synonymous. Why? - ANSWER Buyers and sellers influence relationship between price and value. What principle is the basis for every approach to value? - ANSWER Substitution What are the six characteristics for parcel ID system? - ANSWER Uniqueness, Permanence, Simplicity, Ease of Maintenance, Flexibility, Reference to geographic location. How many sections in a township? - ANSWER 36 How many acres in a township? - ANSWER 640 What are the 5 attributes of land? - ANSWER Land is permanent, unique in location and composition, land has finite supply, land is functional, land is stationary. What is the primary sort with land sales? - ANSWER Land sales are first sorted by market area What is the preferred method to value land? - ANSWER Direct sales comparison approach Know how to order adjustments. What is the order? - ANSWER 1. Financing 2. Market Conditions 3. Location and physical characteristics What is the percentage for 1 : 3? - ANSWER 1 + 3 = 4 and 1/4 = .25 or 25% What is assemblage? - ANSWER Merging of adjacent properties into one common ownership. What is plottage? - ANSWER The increment value created when two or more sites are combined to produce greater utility. What are the units of comparison for land? - ANSWER Front foot, square foot, acre, site, and units buildable What are the order of adjustments in a sales comparison approach? - ANSWER Financing, Market Conditions (time adjustment), Location, and Physical characteristics. What are the six methods for valuing land? - ANSWER Sales comparison, allocation, abstraction, anticipated use, land residual, and ground rent capitalization. What are the elements of cost? - ANSWER direct, indirect, entrepreneur profit and incentive What are the concepts of estimating cost? - ANSWER Replacement, Reproduction, Historical, Trended. What are the 4 methods of estimating cost? - ANSWER Quantity Survey Method, Unit in Place, and Comparative Unit Method? What method of the cost approach is most widely used by mass appraisers? - ANSWER Comparative Unit Method What is depreciation? - ANSWER It is the difference between RCN and its market value. What is the most common method for measuring depreciation? - ANSWER Sales comparison method What are the methods of measuring depreciation? - ANSWER Sales comparison, Capitalization of income method, economic age-life method, observed condition method. What are the three causes or types of depreciation? - ANSWER Physical, functional, and external. What method of measuring depreciation considers the whole property in one lump sum? - ANSWER Sales comparison What elements of the marketplace are most likely to contribute to a change in demand? - ANSWER Consumer taste, consumer income, price of related commodities, consumer expectations, price of commodity inversely related to quantity of demand Under the step in the appraisal process that is termed data collection and analysis, specific data include.. - ANSWER Site data The land valuation method that replicates the actions of subdividers or developers is know as the - ANSWER anticipated use or development method What method of estimating depreciation is most widely used? - ANSWER Comparative Unit Method What are indirect methods of measuring depreciation? - ANSWER Sales Comparison and Capitalization of Income What are direct methods of measuring depreciation? - ANSWER Economic age-life, modified economic age-life, and observed condition. The difference between cost new and its market value is? - ANSWER Depreciation What is the underlying premise in the sales comparison approach? - ANSWER the market value of a property is related to the prices of comparable, competitive properties recently sold in the marketplace. What is the sales comparison formula? - ANSWER V = Sc +/- ADJc Which method of estimating depreciation is the most detailed? - ANSWER Observed condition or breakdown method Basic responsibilities of tax assessors - ANSWER Discover, List, and Value What are the rights of ownership? Bundle of rights - ANSWER Sell, Lease, Use, Give away, Enter or Leave, Right to not do anything. (S.L.U.G.E.R.)