Exam (elaborations)
IAAO 300 LATEST EXAM 2025 (Questions With Correct Answers) Guaranteed Pass 100%
- Course
- Institution
IAAO 300 LATEST EXAM 2025 (Questions With Correct Answers) Guaranteed Pass 100%
[Show more]
Content preview
SCORE MOREIAAO 300 LATEST EXAM 2025 (Questions
With Correct Answers) Guaranteed Pass
100%
Scope of Work Rule
1. Identify the problem to be solved
2. Determine and perform the scope of work necessary to develop credible assignment results
3. Disclose the scope of work in the report
Scope of work acceptability
When it meets or exceeds:
1. Expectations of parties who are regularly intended users for similar assignments and
2. What an Appraiser's peers actions would be in performing the same or similar assignments
Economic Basis of Model Building
Supply factors relate to availability and thus reflect such things as Cost, interest rates, and economic
conditions. Demand factors include characteristics to buyers, such as construction quality, condition,
and location.
Basic Cost Model Structure
MV = LV + BV
,SCORE MORE
Basic Sales Comparison Basic Model Structure
MVs = Sc + ADJc
Basic Income Models
1. NOI Model
MV = NOI / OAR
2. GI Model
MV = GI x GIM
Model Development
1. Specification
2. Calibration
3. Quality Assurance
Specification
What data to include in the model and in what format
1. Additive
2. Multiplicative
3. Hybrid (generic)
Additive Model Structure
Each of the variables are independent from the other variables. A change in one variable does not
directly impact any other variables
, SCORE MORE
MV = ($/sqft x sqft) + ($/plumbing fixture x #fixtures) + ($/car stall x #/cars) + ...
Multiplicative Model Structure
Each of the variables are interdependent. Any change to one variable will have an impact on all of the
other variables.
Hybrid (generic) Model Structure
Combines both additive and multiplicative model structures
Finding Net Operating Income (NOI)
1. Potential Gross Income (PGI) 100% occupancy at market rent (market rent is the prevailing rent in the
open market, not the rent called for in a lease)
2. Minus Vacancy and Collection Loss (V&C) - any money lost from units not being rented or from people
not paying rent
3. Plus Miscellaneous Income (Misc Inc) - income from secondary sources, such as clubhouse rentals,
health club memberships, storage rentals, and vending or laundry machines
4. Equals Effective Gross Income (EGI) - this 100% of the actual money made by the real property
operation.
5. Minus Allowable Expenses and Reserves (Exp & Res) - expenses that have to do with the operation of
the real estate and not the business. Reserves are items that will wear out before the bone structure,
such as carpet, roof, air conditioners, etc. Reserves are expensed on a prorated basis (ie. Carpet lasts 5
years so if it costs $2, = $400 allowable deduction per year)
6. Equals Net Operating Income (NOI) - the income remaining after expenses and reserves. This is the "I"
in the IRV formula
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TOPMARKSOLUTIONS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.19. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80202 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now