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IAAO 101 - REVIEW QUESTIONS AND ANSWERS 2024
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IAAO 101 - REVIEW QUESTIONS AND ANSWERS 2024
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IAAO 101 - REVIEW 2024ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
A two-story residence has only one bath, which is located on the second floor. If a
second bath had been included on the first floor when the residence was originally
constructed, RCN would be $11,500. The cost to install (cure) the second bath
today would be $13,500.
The amount of functional obsolescence would be . - ANSWERS-$2,000
QUESTION 2
A residence is located on a street that has become a very busy thoroughfare. It
rents for $800 per month. Residences not located on the busy street rent for $825
per month. The GRM for this area is 150, and the land-to-building ratio is 1:4.
The indicated amount of external obsolescence is . - ANSWERS-$3,000
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, IAAO 101 - REVIEW 2024
QUESTION 3
A residence has an RCN of $200,000. Items classified as curable physical
deterioration have an RCN of $10,000 and a cost to cure of $12,000. Incurable
physical deterioration (short-lived items) have an RCN of $40,000 and a
depreciation amount of $18,000. The actual age for the residence is 6 years, and
the total useful life is 60 years.
The total amount of physical deterioration for the residence would be .
- ANSWERS-$45,000
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, IAAO 101 - REVIEW 2024
QUESTION 4
If the cost to cure a functional deficiency within a residence exceeds the increase
in value added to the property, it is called functional obsolescence. -
ANSWERS-incurable
QUESTION 5
The Principle of holds that the value of a property tends to be set by
the price that would be paid to acquire a property of similar utility and desirability
within a reasonable amount of time. - ANSWERS-Substitution
QUESTION 6
The Prince of is the underlying principle in the adjustment
process in the sales comparison approach. - ANSWERS-Contribution
QUESTION 7
A major principle in the sales comparison approach holds that the relationship
between a property and its environment must be in for a property to
reflect its optimum market value. - ANSWERS-balance
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