IAAO Course 300 Exam Questions with Correct Answers Graded A+ Scope of Work Rule - Correct Answer 1. Identify the problem to be solved
- Determine and perform the scope of work necessary to develop credible assignment results
- Disclose the scope of work in the report
Scope of work acceptability - Correct Answer When it meets or exceeds:
- Expectations of parties who are regularly intended users for similar assignments and 2. What an
Appraiser's peers actions would be in performing the same or similar assignments Economic Basis of Model Building - Correct Answer Supply factors relate to availability and thus reflect such things as Cost, interest rates, and economic conditions. Demand factors include characteristics to buyers, such as construction quality, condition, and location.Basic Cost Model Structure - Correct Answer MV = LV + BV Basic Sales Comparison Basic Model Structure - Correct Answer MVs = Sc + ADJc Basic Income Models - Correct Answer 1. NOI Model
MV = NOI / OAR
- GI Model
- Calibration
- Quality Assurance
MV = GI x GIM Model Development - Correct Answer 1. Specification
Specification - Correct Answer What data to include in the model and in what format 1 / 2
- Additive
- Multiplicative
- Hybrid (generic)
- Minus Vacancy and Collection Loss (V&C) - any money lost from units not being rented or from people
- Plus Miscellaneous Income (Misc Inc) - income from secondary sources, such as clubhouse rentals,
- Equals Effective Gross Income (EGI) - this 100% of the actual money made by the real property
- Minus Allowable Expenses and Reserves (Exp & Res) - expenses that have to do with the operation of
- / 2
Additive Model Structure - Correct 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) + ...Multiplicative Model Structure - Correct Answer Each of the variables are interdependent. Any change to one variable will have an impact on all of the other variables.Hybrid (generic) Model Structure - Correct Answer Combines both additive and multiplicative model structures Finding Net Operating Income (NOI) - Correct Answer 1. Potential Gross Income (PGI) 100% occupancy at market rent (market rent is the prevailing rent in the open market, not the rent called for in a lease)
not paying rent
health club memberships, storage rentals, and vending or laundry machines
operation.
the real estate and not the business. Reserves are items that will wear out before the bone structure, such as carpet, roof, air conditioners, etc. Reserves are expensed on a prorated basis (ie. Carpet lasts 5 years so if it costs $2,000 / 5 = $400 allowable deduction per year)