Iaao course 102 - Study guides, Class notes & Summaries

Anticipation - ANSWER-Value is created by the expectation of benefits to be derived in the future. Leverage - ANSWER-The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds. Chattel mortgage - ANSWER-A mortgage only on persona property Yo - ANSWER-Also known as the discount rate, reflects the return on investment. Safe rate - ANSWER-Base rate on the safest investments such as government insured investments (Yo). Risk rate - ANSWER-An amount ...

IAAO Course 102- Review with Complete Solutions Components of Capitalization Process - ANSValue, Net Operating Income, and Capitalization Rate The underlying economic principle of 3 approaches to value - ANSsubstitution Market Value is also known as - ANSvalue in exchange Most probable price the property will sell for in an arm's-length transaction under normal conditions on the open market - ANSmarket value Higher Cap Rate - ANSMeans Higher Risk and Lower Overall Value Lower Cap Rate ...

IAAO Course 102- Review with Complete Solutions Anticipation - ANSThe economic principle of _______ states that value is created by the expectation of benefits to be derived in the future. Substitution - ANSThe economic principle of _________ states that a property's maximum value tends to be set by the lowest cost or price at which another property of equivalent utility can be acquired. Income - ANSOne of three approaches to value in which the appraiser derives a value indication by co...

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. The Economic Principle of Substitution states that a property's maximum value tends to be set by the lowest cost or price at which another property of equivalent utility can be acquired. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular pa...

Capitalization is the process used to: convert income into an estimate of value fixed-rate mortgage A loan secured by real property featuring an interest rate that is constant for the term of the loan is referred to as a (an): anticipation The underlying principle providing the basis of the income capitalization approach is: income divided by rate equals value The basic equation used in the income approach to value is: deficit rent When market rent exceeds contra...

Quiz #1 IAAO Course 102 with 100% correct answers.

IAAO COURSE 102 with 100% correct answers

IAAO Course 102- Review with Complete Solutions List five sources of rental income data: - ANS1. Commercial property managers 2. Tenants of comparable properties 3. Real estate brokers and sales people 4. Sellers and purchasers of comparable properties 5. Public records Another name for market rent is___________rent. - ANSeconomic In addition to sales and leases, _________ and ___________ can be a valid source of market information, if care is exercised. - ANSoffers listings 4. A leas...