IAAO 101 - Review Questions Exam 150
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) ALREADY GRADED A+ 2025 NEW
UPDATE
______ ____ ______ represents the value of a property for a specific use. - CORRECT
ANSWER: Value in use
_______ ________ analysis, which is used primarily in single-property appraisal,
requires the sale properties to be identical in all attributes except the one being
measured (or adjustments have already been made for any differences). - CORRECT
ANSWER: Paired sales
_______ ________ is a parcel of land and any structures or improvements that are
permanently affixed thereto. - CORRECT ANSWER: Real estate
________ refers to the amount of goods that producers are willing to sell at a given
price during a specified time period. - CORRECT ANSWER: Supply
__________ ______ is the cost of producing a building or improvement using modern
methods and materials with the same utility. - CORRECT ANSWER: Replacement cost
__________ ______ is the cost of producing an exact replica of a building or
improvement. - CORRECT ANSWER: Reproduction cost
___________ obsolescence is a loss in value due to a deficiency, modernization, or
superadequacy within the structure. - CORRECT ANSWER: Functional
,___________ obsolescence is a loss in value resulting from a decrease in utility and
desirability caused by factors outside the property's boundaries. - CORRECT ANSWER:
External
____________ is the point at which the forces of supply and forces of demand meet. -
CORRECT ANSWER: Equilibrium
A cardinal rule in the sales comparison approach holds that all adjustments are made to
the ______ property, and never to the ______. - CORRECT ANSWER: subject
A complete set of ________ maps showing boundaries, parcel size, sales information,
and other relevant features of all parcels in a jurisdiction is a necessary tool for
assessors. - CORRECT ANSWER: cadastral
A jurisdiction's tax rate is determined by dividing the _________ to be derived from
property tax by the total _________ ____________ of the taxing jurisdiction. -
CORRECT ANSWER: budget
assessed valuation
A land-to-building ratio of 1:4 means land represents ____ percent of the value. -
CORRECT ANSWER: 20
A major advantage to the sales comparison approach is that it reflects the actions of
________ and _________ in the market. - CORRECT ANSWER: buyers
sellers
A major principle in the sales comparison approach holds that the relationship between
a property and its environment must be in ________ for a property to reflect its optimum
market value. - CORRECT ANSWER: balance
, A method of valuing land that subtracts the depreciated value of the improvement from
the sale price is known as _________. - CORRECT ANSWER: abstraction
A residence has an RCN of $200,000. Items classified as curable physical deterioration
have an RCN of $10,000 and a cost to cure of $12,000. Incurable physical deterioration
(short-lived items) have an RCN of $40,000 and a depreciation amount of $18,000. The
actual age for the residence is 6 years, and the total useful life is 60 years.
The total amount of physical deterioration for the residence would be ________. -
CORRECT ANSWER: $45,000
A residence is located on a street that has become a very busy thoroughfare. It rents for
$800 per month. Residences not located on the busy street rent for $825 per month.
The GRM for this area is 150, and the land-to-building ratio is 1:4.
The indicated amount of external obsolescence is ______. - CORRECT ANSWER:
$3,000
A township in the Public Land Survey System contains ____ sections, with each section
containing _____ acres. - CORRECT ANSWER: 36
640
A two-story residence has only one bath, which is located on the second floor. If a
second bath had been included on the first floor when the residence was originally
constructed, RCN would be $11,500. The cost to install (cure) the second bath today
would be $13,500.
The amount of functional obsolescence would be _______. - CORRECT ANSWER:
$2,000
A unit of comparison that would be applicable to agricultural farmland or larger rural
residential tracts would be the ______________. - CORRECT ANSWER: price per acre
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) ALREADY GRADED A+ 2025 NEW
UPDATE
______ ____ ______ represents the value of a property for a specific use. - CORRECT
ANSWER: Value in use
_______ ________ analysis, which is used primarily in single-property appraisal,
requires the sale properties to be identical in all attributes except the one being
measured (or adjustments have already been made for any differences). - CORRECT
ANSWER: Paired sales
_______ ________ is a parcel of land and any structures or improvements that are
permanently affixed thereto. - CORRECT ANSWER: Real estate
________ refers to the amount of goods that producers are willing to sell at a given
price during a specified time period. - CORRECT ANSWER: Supply
__________ ______ is the cost of producing a building or improvement using modern
methods and materials with the same utility. - CORRECT ANSWER: Replacement cost
__________ ______ is the cost of producing an exact replica of a building or
improvement. - CORRECT ANSWER: Reproduction cost
___________ obsolescence is a loss in value due to a deficiency, modernization, or
superadequacy within the structure. - CORRECT ANSWER: Functional
,___________ obsolescence is a loss in value resulting from a decrease in utility and
desirability caused by factors outside the property's boundaries. - CORRECT ANSWER:
External
____________ is the point at which the forces of supply and forces of demand meet. -
CORRECT ANSWER: Equilibrium
A cardinal rule in the sales comparison approach holds that all adjustments are made to
the ______ property, and never to the ______. - CORRECT ANSWER: subject
A complete set of ________ maps showing boundaries, parcel size, sales information,
and other relevant features of all parcels in a jurisdiction is a necessary tool for
assessors. - CORRECT ANSWER: cadastral
A jurisdiction's tax rate is determined by dividing the _________ to be derived from
property tax by the total _________ ____________ of the taxing jurisdiction. -
CORRECT ANSWER: budget
assessed valuation
A land-to-building ratio of 1:4 means land represents ____ percent of the value. -
CORRECT ANSWER: 20
A major advantage to the sales comparison approach is that it reflects the actions of
________ and _________ in the market. - CORRECT ANSWER: buyers
sellers
A major principle in the sales comparison approach holds that the relationship between
a property and its environment must be in ________ for a property to reflect its optimum
market value. - CORRECT ANSWER: balance
, A method of valuing land that subtracts the depreciated value of the improvement from
the sale price is known as _________. - CORRECT ANSWER: abstraction
A residence has an RCN of $200,000. Items classified as curable physical deterioration
have an RCN of $10,000 and a cost to cure of $12,000. Incurable physical deterioration
(short-lived items) have an RCN of $40,000 and a depreciation amount of $18,000. The
actual age for the residence is 6 years, and the total useful life is 60 years.
The total amount of physical deterioration for the residence would be ________. -
CORRECT ANSWER: $45,000
A residence is located on a street that has become a very busy thoroughfare. It rents for
$800 per month. Residences not located on the busy street rent for $825 per month.
The GRM for this area is 150, and the land-to-building ratio is 1:4.
The indicated amount of external obsolescence is ______. - CORRECT ANSWER:
$3,000
A township in the Public Land Survey System contains ____ sections, with each section
containing _____ acres. - CORRECT ANSWER: 36
640
A two-story residence has only one bath, which is located on the second floor. If a
second bath had been included on the first floor when the residence was originally
constructed, RCN would be $11,500. The cost to install (cure) the second bath today
would be $13,500.
The amount of functional obsolescence would be _______. - CORRECT ANSWER:
$2,000
A unit of comparison that would be applicable to agricultural farmland or larger rural
residential tracts would be the ______________. - CORRECT ANSWER: price per acre
