IAAO Course 102 (SOLVED!)

Anticipation correct answers Value is created by the expectation of benefits to be derived in the future Substitution correct answers the prices, rents, and rates of return of property tend to be set by the current prices, rents and rates of return for equally desire able substitute properties. ...

Surplus Productivity correct answers Allows us to capitalize land income into an indication of value Return ON correct answers Overall Yield or Discount Return OF correct answers Wasting Asset or Recapture Leverage correct answers The borrowing of funds in hopes of earning a greater return ...

The Economic Principle of Anticipation correct answers states that value is created by the expectation of benefits to be derived in the future. Chattel correct answers A mortgage on personal property. Balloon payment correct answers A payment on the balance due of a note at the end of the loan...

capitalization is the process to: correct answers convert income into an estimation of value A loan secured by featuring an intrest rate that is constant for the term of the loan is reffered to as a (an): correct answers fixed-rate mortgage the underlying principle providing the basis of the i...

Value is created by the expectation of benefits to be derived in the future. correct answers Anticipation This is the underlying principle which provides the basis of the income capitalization approach. correct answers Anticipation The most probable price a property should bring in a competiti...

INCOME APPROACH correct answers VALUE BY CONVERTING ANTICIPATED BENEFITS THROUGH OWNERSHIP OF INCOME-PRODUCING PROPERTY INVESTOR CONSIDERATIONS FOR REAL ESTATE correct answers 1. HOW MUCH WILL IT COST? 2. HOW MUCH WILL i GET BACK? 3. WHEN WILL I GET IT BACK? 4. WHAT ARE THE RISKS? 5. WHAT IS ...

Anticipation correct answers Value is created by the expectation of benefits to be derived in the future. Leverage correct answers The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds. Chattel mortgage correct answers A mortgage only on persona proper...

Capitalization Rate correct answers A rate used for converting property income into property value Discount Rate correct answers The rate of return on a real estate investment. It reflects the compensation necessary to attract investors to give up liquidity. Recapture rate correct answers Prov...

Income Approach correct answers Approach to value in which the appraiser analyzes a property's ability to earn future income Investor Asks These Questions to Analyze Investments correct answers 1. How much will it cost 2. How much will I get back 3. When will I get it back 4. What are the ris...

Value is created by the expectation of benefits to be derived in the future. correct answers Anticipation The prices, rents, and rates of return of property tend to be set by the current prices, rents, and rates of return for equally desirable substitute properties. correct answers Substitution ...

Sales and Offers correct answers In addition to sales and leases, ____________ and _______________ can be be valid sources of market information, if care is exercised. 5 Sources of Rental income Data correct answers 1. Commercial Property Managers 2. Tenants of comparables properties 3. Real es...

Valid sources of market information (4) [if care is exercised] correct answers 1. sales 2. leases 3. offers 4. listing Five sources of rental income data correct answers 1. commercial property managers 2. tenants of comp properties 3. RE brokers & sales people 4. sellers & purchasers of c...

If the land capitalization rate in straight line capitalization (including the effective tax rate) is 9%, and the remaining economic life of the improvement is 25 years, the building capitalization rate is correct answers 13% . In straight-line capitalization, ________________________is received ...

Income Capitalization Approach (Capitalization Process) correct answers The value of an income producing property is estimated by converting anticipated benefits arising from the ownership of the income producing property. Components of the capitalization process are: correct answers value, net o...