IAAO Course 300 Exam Latest Update 2023-2024 Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt
Accrued Depreciation - ANSWER: The difference between the market value of an
improvement and its RCN.
- Sale price - Market value of land = market value of the improvements (building)
- RCN - market value of the improvements (buildings) = $ depreciation
- $ depreciation / RCN = % of depreciation
Additive Model Structure - ANSWER: Each of the variables are independent from the other variables. A change in one variable does not directly impact any other variables
MV = ($/sqft x sqft) + ($/plumbing fixture x #fixtures) + ($/car stall x #/cars) + ...
Basic Cost Model Structure - ANSWER: MV = LV + BV
Basic Income Models - ANSWER: 1. NOI Model
MV = NOI / OAR
- GI Model
MV = GI x GIM
Basic Sales Comparison Basic Model Structure - ANSWER: MVs = Sc + ADJc
Batch Data Entry - ANSWER: Data is entered into a holding file where it's tested for errors and cleaned before updating the database
Binary Data - ANSWER: Two predefined choices. Yes or no. 0 or 1
Capitalization by using Gross Income Multiplier - ANSWER: Gross income times gross income multiplier equals market value
GI x GIM = V
Capitalization Rate - ANSWER: The term capitalization means to convert income into an estimate of value. A capitalization rate is used in converting net income (NOI) into an estimate of value.
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Coefficient of Dispersion - ANSWER: Indicates how far, on average, observations are from the median point.
Steps:
- Array the data
- Find the median
- Find the absolute difference
- Sum the absolute deviations
- Divide the sum of the
- Divide the AAD by the
between the median and each observation
absolute deviations by n equals the average absolute deviation (AAD)
median x 100
The acceptable COV for smaller heterogeneous areas is 15
It is approximately 75% of a COV
Coefficient of Variation (COV) - ANSWER: Expresses the standard deviation as a
percentage of the mean
Divide the standard deviation by the mean x 100
A coefficient of dispersion is approximately 75% of a coefficient of variation. So if an acceptable COD is 15, an acceptable COV would be approximately 20
+- 1 COV of the mean represents 68% of the population
+- 2 COV of the mean represents 95% of the population
+- 3 COV of the mean represents 99% of the population
Comparative Unit - ANSWER: Cost estimation made by a cost per square foot
multiplied by the square footage of the improvement. Refinements are made for variations to the base cost amount.
Consistency (logic) Edits - ANSWER: Examples: Number of rooms need to be greater than the number of bedrooms; or Total room count needs to be greater than the number of bathrooms
Continuous Data - ANSWER: Synonymous with quantitative data.
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