IAAO 102 2026 Exam Questions LATEST VERSIONS
75 QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
5 Analysis Questions for Investors - - CORRECT ANSWER: 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Amortized Mortgage - CORRECT ANSWER: Fixed rate mortgage permanent loan in which the
sum of the principal and interest payments remains fixed throughout the term of the loan.
Anticipation - CORRECT ANSWER: Value is created by the expectation of benefits to be
derived in the future
Chattel Mortgage - CORRECT ANSWER: a mortgage only on personal property.
Contribution - CORRECT ANSWER: the value of a component of real estate can be measured
by the amount it contributes to net operating income because net operating income can be
capitalized into value.
Effective Gross Income (EGI) - CORRECT ANSWER: obtained after determining the potential
income for the property
Effective Tax Rate (ETR) - CORRECT ANSWER: Reflect the relationship between the real
estate taxes and the value of the property.
, Five Methods of Developing an overall capitalization rate - - CORRECT ANSWER: 1.
Derivation from comparable **** This is the one on the test
2. Band of Investment Technique (Mortgage & Equity Components)
3. Net Income Ratio
4. Debt coverage ratio
5. Band of Investment Technique (LAND AND IMPROVEMENT COMPONENTS)
Four factors to capture overall yield rate (Yô) - - CORRECT ANSWER: 1. Safe rate
2. Risk Rate
3. Rate for non-liquidity
4. Rate for Management
Gross Income Multiplier - CORRECT ANSWER: relationship between Effective gross income
(EGI) and the sales prices or property value
Gross Leasable Area (GLA) - CORRECT ANSWER: includes the entire area of the building
Gross Lease - CORRECT ANSWER: the landlord is required to pay all operating expenses
associated with the real estate.
Income Approach - CORRECT ANSWER: One of the three approaches to value in which the
appraiser derives a value indication by converting anticipated benefits through ownership of
income -producing property is the ______________
Junior Mortgage - CORRECT ANSWER: typical a second mortgage
Leverage - CORRECT ANSWER: borrowing of funds in hopes of earning a greater return than
the cost of the borrowed funds. This amount can be be negative, positive, or neutral.
75 QUESTIONS AND CORRECT VERIFIED
ANSWERS WITH RATIONALES (100%
CORRECT) A+ GRADED ASSURED
5 Analysis Questions for Investors - - CORRECT ANSWER: 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Amortized Mortgage - CORRECT ANSWER: Fixed rate mortgage permanent loan in which the
sum of the principal and interest payments remains fixed throughout the term of the loan.
Anticipation - CORRECT ANSWER: Value is created by the expectation of benefits to be
derived in the future
Chattel Mortgage - CORRECT ANSWER: a mortgage only on personal property.
Contribution - CORRECT ANSWER: the value of a component of real estate can be measured
by the amount it contributes to net operating income because net operating income can be
capitalized into value.
Effective Gross Income (EGI) - CORRECT ANSWER: obtained after determining the potential
income for the property
Effective Tax Rate (ETR) - CORRECT ANSWER: Reflect the relationship between the real
estate taxes and the value of the property.
, Five Methods of Developing an overall capitalization rate - - CORRECT ANSWER: 1.
Derivation from comparable **** This is the one on the test
2. Band of Investment Technique (Mortgage & Equity Components)
3. Net Income Ratio
4. Debt coverage ratio
5. Band of Investment Technique (LAND AND IMPROVEMENT COMPONENTS)
Four factors to capture overall yield rate (Yô) - - CORRECT ANSWER: 1. Safe rate
2. Risk Rate
3. Rate for non-liquidity
4. Rate for Management
Gross Income Multiplier - CORRECT ANSWER: relationship between Effective gross income
(EGI) and the sales prices or property value
Gross Leasable Area (GLA) - CORRECT ANSWER: includes the entire area of the building
Gross Lease - CORRECT ANSWER: the landlord is required to pay all operating expenses
associated with the real estate.
Income Approach - CORRECT ANSWER: One of the three approaches to value in which the
appraiser derives a value indication by converting anticipated benefits through ownership of
income -producing property is the ______________
Junior Mortgage - CORRECT ANSWER: typical a second mortgage
Leverage - CORRECT ANSWER: borrowing of funds in hopes of earning a greater return than
the cost of the borrowed funds. This amount can be be negative, positive, or neutral.
