IAAO 300 COMPLETE COURSE REVIEW

IAAO 300: COMPLETE COURSE REVIEW

QUESTIONS AND ANSWER S 100% PASS

Question 1: 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

Question 2: 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

Question 3: 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.

Question 4: Basic Cost Model Structure

CORRECT ANSWER: MV = LV + BV

Question 5: Basic Sales Comparison Basic Model

Structure

CORRECT ANSWER: MVs = Sc + ADJc

Question 6: Basic Income Models

CORRECT ANSWER: 1. NOI Model

MV = NOI / OAR

• GI Model

MV = GI x GIM

Question 7: Model Development

CORRECT ANSWER: 1. Specification

• Calibration

• Quality Assurance

Question 8: Specification

CORRECT ANSWER: What data to include in the

model and in what format

• Additive
• Multiplicative
• Hybrid (generic)

Question 9: 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) + ...

Question 10: 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.

Question 11: Hybrid (generic) Model Structure

CORRECT ANSWER: Combines both additive and

multiplicative model structures

Question 12: 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)

• Minus Vacancy and Collection Loss (V&C) - any

money lost from units not being rented or from people not paying rent

• Plus Miscellaneous Income (Misc Inc) - income from

secondary sources, such as clubhouse rentals, health club memberships, storage rentals, and vending or laundry machines

• Equals Effective Gross Income (EGI) - this 100% of

the actual money made by the real property operation.

• Minus Allowable Expenses and Reserves (Exp & Res)
• expenses that have to do with the operation of the real