Indirect methods of measuring depreciation - Answer- -Sales comparison (Market Extraction)
-Capitalization of income method
Financing - Answer- The first adjustment in the sales comparison approach is
Sales Comparison Approach - Answer- A fundamental strength in this approach is that it refl...
IAAO 101 Exam 2023 Questions and Answers
Indirect methods of measuring depreciation - Answer- -Sales comparison (Market Extraction)
-Capitalization of income method
Financing - Answer- The first adjustment in the sales comparison approach is
Sales Comparison Approach - Answer- A fundamental strength in this approach is that it
reflects the actions of the marketplace as well as what by buyers & sellers are actually doing doing and paying.
-Consumer tastes/preferences
-Consumer income
-Price of related commodities
-Consumer expectations
-Price of the commodity - Answer- Elements of the marketplace that are most likely to contribute to a change in demand.
Market Value - Answer- The type of value usually estimated by the assessor
Sales Comparison Approach - Answer- This approach reflects the actions of buyers and
sellers in the market.
Comparative Unit Method - Answer- Typically used by appraisers, this method is easiest, fastest, and most widely used method of cost estimation.
U-uniform
S-standard of P-professional A-appraisal
P-practice - Answer- Provides standards for appraisal practice.
Comprises the following:
1. Definitions
2. Preamble
3. Ethics rule
(4. Record keeping rule)
(5. Competency rule)
6. Scope of work
7. Jurisdictional exception
8. Ten standards Elements of Demand - Answer- Consumer expectations about the future also affect the demand of the product
-can contribute to a change in demand
Value in use. - Answer- The value of a property for a specific use.
-it rests on the premise that value is within the object itself.
Contribution - Answer- -This is the underlying principle in the adjustment process of the sales comparison approach
-Value of a property component is measured by what the market says is its contribution to the value of the property
-Site data
-Off-site data
-Improvements - Answer- Under the step in the appraisal process that is termed data collection and analysis, specific data includes
Sales Comparison - Answer- -Direct sales comparisan
-Allocation
-Abstraction
Anticipated use/development
-Capitalization of ground rent
-Land residual
Fee Simple Absolute - Answer- The ownership of all legal rights of a property
Anticipated use or development - Answer- Reflects the actions of sub-dividers or developers
Abstraction formula - Answer- S - IV = LV
S = Sale price
IV = Depreciated value of improvements
LV = Land value
Allocation - Answer- Expressed as one part land to XX parts of improvements
Principle of change - Answer- An interim use is the current highest & best use that is likely to change in a short to moderate time period
Sales Comparison Approach - Answer- The underlying premise of this premise of this approach is that the market value of a property is related to the prices of comparable, competitive properties recently sold in the marketplace.
Real Estate - Answer- A parcel of land and any structures or improvements that are permanently affixed thereto.
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