Components of the capitalization process are ________, net operating income, and capitalization rate. -
ANSWER-Value
Components of the capitalization process are value, ________, and capitalization rate. - ANSWER-Net
Operating Income
Components of the capitalization process are value, net opera...
IAAO Course 102 Exam Questions |Already
Answered | Graded A+
Components of the capitalization process are ________, net operating income, and capitalization rate. -
ANSWER-Value
Components of the capitalization process are value, ________, and capitalization rate. - ANSWER-Net
Operating Income
Components of the capitalization process are value, net operating income, and ________. - ANSWER-
Capitalization Rate
Value is created by the expectation of benefits to be derives in the future. - ANSWER-Anticipation
This is the underlying principle which provides the basis of the income capitalization approach. -
ANSWER-Anticipation
Investor's expectations of changes in income levels, the expenses required to ensure income, and
probable increases or decreases in property that must be addressed and forecast. - ANSWER-Change
An excess of one type of facility will decrease the value of all such facilities. - ANSWER-Competition
Underlying principle for all 3 approaches to value. - ANSWER-Substitution
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 properties - ANSWER-Substitution
This principle is market-oriented and provides the basis for estimating rents and expenses and selecting
the proper discount rate or capitalization rate for the subject property. - ANSWER-Substitution
Among types and locations of income-producing properties, may increase or decrease value. - ANSWER-
Balance
,The value of a component of real estate can be measured by its amount in the net operating income
because net operating income can be capitalized into value. - ANSWER-Contribution
The amount of products that producers are willing to sell under various conditions during a given period.
- ANSWER-Supply
The amount of product a buyer is willing and able to buy during some period, given the choices available
to them. - ANSWER-Demand
One of the three approaches to value in which the appraiser derives a value indication by converting
anticipated benefits through ownership of income-producing property is the ________ approach. -
ANSWER-Income
Competition among sellers may lead to a/an ________, which reduces prices and profits. - ANSWER-
Oversupply
Competition among buyers may lead to ________, which increases prices and profits to sellers. -
ANSWER-Shortage
The ________ rate reflects the return of the investment in the wasting asset. - ANSWER-Recapture
"Safety of the investment" is one of the factors in what? - ANSWER-The nine factors influencing investor
decisions.
"Liquidity of the investment" is one of the factors in what? - ANSWER-The nine factors influencing
investor decisions.
"Size of the investment is one of the factors in what? - ANSWER-The nine factors influencing investor
decisions.
"Use as collateral" is one of the factors in what? - ANSWER-The nine factors influencing investor
decisions.
, "Time" is one of the factors in what? - ANSWER-The nine factors influencing investor decisions.
"Management" is one of the factors in what? - ANSWER-The nine factors influencing investor decisions.
"Appreciation" is one of the factors in what? - ANSWER-The nine factors influencing investor decisions.
"Income tax advantages" is one of the factors in what? - ANSWER-The nine factors influencing investor
decisions.
"Leverage" is one of the factors in what? - ANSWER-The nine factors influencing investor decisions.
_____ leverage is achieved when funds are invested in property, which has a higher rate of return than
the cost of borrowed funds. - ANSWER-Positive
A "mortgage" is one of the four what? - ANSWER-The four most common methods of financing real
estate.
A "trust deed" is one of the four what? - ANSWER-The four most common methods of financing real
estate.
"Cash" is one of the four what? - ANSWER-The four most common methods of financing real estate.
A "Land Contract" is one of the four what? - ANSWER-The four most common methods of financing real
estate.
A "Land Contract" is also called what? - ANSWER-Contract for Deed
A mortgage on personal property - ANSWER-Chattel Mortgage
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