Iaao 102 Study guides, Class notes & Summaries

Value is created by the expectation of benefits to be derived in the future. - Answer- Anticipation This is the underlying principle which provides the basis of the income capitalization approach. - Answer- Anticipation The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. - Answer- Market Value All investors want a return OF their money - Answer- Recapture rate or getting back amount invested All investors wan...

IAAO 102 EXAM NEWEST VERSION WITH COMPLETE SOLUTIONS

IAAO 102 Exam with Complete Solutions(100Q&A)

Anticipation - Answer- Value is created by the expectation of benefits to be derived in the future Substitution - Answer- 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. Contribution - Answer- the value of a component of real estate can be measured by the amount it contributes to net operating income because net operating income can be capitalized into value. Market Value - ...

IAAO 102 EXAM NEWEST ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY A+ GRADED

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 The most profitable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, ...

capitalization is the process to: - Answer- 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): - Answer- fixed-rate mortgage the underlying principle providing the basis of the income capitalization approach is : - Answer- anticipation the basis equation used in the income approach to value is: - Answer- income divided by rate equals value a gross lease requires that in addition to...

IAAO 102 Income with 100% correct answers.

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 competitive and open market under all conditions requisite to a fair sale. correct answers Market Value All investors want a return OF their money correct answers Recapture rate or getting back amount inves...

IAAO 102 Questions and Answers Graded A+ Surplus Produtivity Allows us to capitalize land income into an indication of value Return ON Overall Yield or Discount Return OF Wasting Asset or Recapture Leverage The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds Positive Leverage This is achieved when funds are invested in property, which has a higher rate of return than the cost of borrowed funds Negative Leverage This occurs when the cost of the bor...