Exam (elaborations)
IAAO 101 – QUESTIONS WITH COMPLETE ANSWERS
IAAO 101 – QUESTIONS WITH COMPLETE ANSWERS
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IAAO 101 – QUESTIONS WITH COMPLETE ANSWERSAd Valorem Correct Ans - tax based on value
Demand Correct Ans - Quantities of various goods that people are
willing and able to buy during some period, given the choices available to
them
1. Discovery
2. Listing
3. Valuation Correct Ans - The assessor is responsible for
1. Physical
2. Economic
3. Governmental
4. Social Correct Ans - The 4 factors affecting land values:
Situs Correct Ans - The taxable location of personal property
Surplus Productivity Correct Ans - this principle states that returns
to land are what remain after returns to labor, management, & capital are
satisfied
Appraisal Correct Ans - An estimate of value, usually in writing, of
an adequately described property, as of a given date.
6 methods of land valuation Correct Ans - 1. Direct sales
comparison
2. Allocation
3. Abstraction
4. Anticipated use or development
5. Capitalization of ground rent
6. Land residual technique
Tax Rate Correct Ans - Budget ÷ Assessed valuation
Cadastral Correct Ans - A complete set of these maps shows
boundaries, parcel size, sales information, and other relevant features of all
parcels in a jurisdiction is a necessary tool for assessors
,Market Correct Ans - The type of value usually estimated by the
assessor
Metes & Bounds Correct Ans - the practice of measuring the
direction of property lines with compass bearings and the distance with
measuring chains or tapes in order to obtain a property description
Effective Tax Rate Correct Ans - reflects the ratio between the
current tax bill and the property value
36 sections & 640 acres Correct Ans - A township in the Public
Land Survey System contains how many sections, and each section contains
how many acres
1. utility
2. scarcity
3. desirability
4. effective purchasing power Correct Ans - In order for a property
to have value it must have
Stratified Correct Ans - When land is valued by using the direct
sales comparison approach, sales must first be what, into homogeneous
groups
Highest and Best Use Correct Ans - The use that generates the
highest net return to a property over a reasonable time period is called its
Off Site Correct Ans - Improvements such as streets, sidewalks, and
the availability of utilities are what type of improvements
Balance Correct Ans - The principle that states that maximum value
of a neighborhood is attained when the uses of land are perfectly
complementary
Direct Sales Comparison Correct Ans - This method of land
valuation compares the property being appraised to comparable vacant
parcels that have recently sold
,Consistent Use Correct Ans - This appraisal principle affirms that
land cannot be valued on the basis of one use while improvements are
valued on the basis of another
Unit of Comparison Correct Ans - Front foot, Square foot, & Acre
are all examples of this
1. Legally permissible
2. Physically possible
3. Financially feasible
4. Most productive Correct Ans - What are the 4 tests that the
appraiser must make in the analysis of the highest and best use
Comparable - Subject Correct Ans - In the direct sales comparison
approach to land valuation, adjustments are always made to these
properties and never to these properties.
Real Estate Correct Ans - a parcel of land and any structure or
improvements that are permanently affixed to it
Negative Correct Ans - if a comparable lot that sold is Superior in
some aspect to the subject lot, a (positive or negative) adjustment would be
made to the comparable property.
Personal Correct Ans - Property is considered this if it can be
moved without causing any damage or change to either the item of
property or the structure to which it is attached
Abstraction Correct Ans - a method of valuing land that subtracts
the depreciated value of the improvement from the sales price
Effective Tax Rate Correct Ans - Assessment level multiplied by the
tax rate. E.A.T.
Direct Sales Comparison Method Correct Ans - the preferred
method of valuing land if adequate data is available
Equilibrium Correct Ans - The point at which the forces of supply
and forces of demand meet
, 20% Correct Ans - A land to building ratio of 1:4 means land
represents what percentage of the value
1. As if vacant
2. As if improved Correct Ans - 2 types of highest and best use
analysis
1 inch = 200 feet Correct Ans - the appropriate map scale for
Suburban areas and small towns
1. Growth
2. Stability
3. Decline
4. Revitalization Correct Ans - The typical lifecycle of a
neighborhood includes
1 inch = 400 feet Correct Ans - the appropriate map scale for rural
areas
1. consumer tastes & preferences
2. consumer income
3. Price of related commodities
4. consumer expectations
5. Price of the commodity Correct Ans - The elements of the
marketplace that are most likely to contribute to a change in demand
Parcel Identifier Correct Ans - the property account number,
linking ownership records, tax maps, and assessment records
Market value is defined as the most probable price of a property in terms of
money, assuming... Correct Ans - 1. buyer & seller are typically
motivated
2. a reasonable time is allowed for exposure in the open market
3. payment is made in terms of cash in US dollars or in terms of financial
arrangements comparable thereto
Site Correct Ans - land that has been developed to the extent that it
is ready to be built upon
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