IAAO 201 ACTUAL EXAM SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ How is "Highest & Best Use" defined? Answer: The use that produces
the greatest economic net return to the property over a reasonable
period, tested "as though vacant" and "as improved."
◉ What are the four agents of production in real estate value? Answer:
Land; Labor; Capital; Management.
◉ Name three characteristics of assessment (cadastral) maps. Answer:
They show parcel boundaries and ownership; display size/location of
each parcel relative to others; include title, publication data, legend,
explanatory notes, and scale.
◉ What are the main steps in the Sales Comparison Approach to land
valuation? Answer: 1) Gather sales info on comparables, 2) Verify sales,
3) Select appropriate comparables, 4) Adjust comparables for
differences, 5) Reconcile to determine subject value.
◉ What are the three primary adjustment techniques for comparables?
Answer: Lump-sum dollar adjustments; Net percentage adjustments;
Cumulative percentage adjustments.
, ◉ What is "plottage value"? Answer: The incremental value gained
when adjacent parcels are combined into one ownership and valued as a
unit higher than the sum of individual parcels.
◉ List three alternative methods of land valuation besides sales
comparison. Answer: Allocation (land-ratio) method; Abstraction
method; Capitalization of ground rents (and other methods like land
residual).
◉ Which of the following is NOT part of the Highest & Best Use
definition: Present net worth; Reasonable probable use; Uses based on
assessor judgment; Financially feasible? Answer: Uses based on assessor
judgment.
◉ When two 50-ft frontage parcels each valued at $75,000 combine into
one 100-ft parcel valued at $150,000, what concept is illustrated?
Answer: Frontage.
◉ When two adjacent parcels valued at $35,000 each combine into one
parcel worth $100,000, what has occurred? Answer: Plottage.
◉ What is the term for land that remains after improvements and can be
developed or sold separately later? Answer: Excess land.
QUESTIONS WITH SOLUTIONS GRADED A+
◉ How is "Highest & Best Use" defined? Answer: The use that produces
the greatest economic net return to the property over a reasonable
period, tested "as though vacant" and "as improved."
◉ What are the four agents of production in real estate value? Answer:
Land; Labor; Capital; Management.
◉ Name three characteristics of assessment (cadastral) maps. Answer:
They show parcel boundaries and ownership; display size/location of
each parcel relative to others; include title, publication data, legend,
explanatory notes, and scale.
◉ What are the main steps in the Sales Comparison Approach to land
valuation? Answer: 1) Gather sales info on comparables, 2) Verify sales,
3) Select appropriate comparables, 4) Adjust comparables for
differences, 5) Reconcile to determine subject value.
◉ What are the three primary adjustment techniques for comparables?
Answer: Lump-sum dollar adjustments; Net percentage adjustments;
Cumulative percentage adjustments.
, ◉ What is "plottage value"? Answer: The incremental value gained
when adjacent parcels are combined into one ownership and valued as a
unit higher than the sum of individual parcels.
◉ List three alternative methods of land valuation besides sales
comparison. Answer: Allocation (land-ratio) method; Abstraction
method; Capitalization of ground rents (and other methods like land
residual).
◉ Which of the following is NOT part of the Highest & Best Use
definition: Present net worth; Reasonable probable use; Uses based on
assessor judgment; Financially feasible? Answer: Uses based on assessor
judgment.
◉ When two 50-ft frontage parcels each valued at $75,000 combine into
one 100-ft parcel valued at $150,000, what concept is illustrated?
Answer: Frontage.
◉ When two adjacent parcels valued at $35,000 each combine into one
parcel worth $100,000, what has occurred? Answer: Plottage.
◉ What is the term for land that remains after improvements and can be
developed or sold separately later? Answer: Excess land.
