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IAAO 101 > Chapter 1 > Flashcards

Chapter 1 Flashcards

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1
Q

Assessor responsible of all taxable property

A

Discover, List, and Valuation

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2
Q

Property tax meaning based on value

A

Ad Valorem Tax

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3
Q

Adequate mapping system, preferably a geographic information system (GIS)

A

Discovery

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4
Q

Creating an inventory of quantity, quality and important characteristics of all taxable property

A

Listing

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5
Q

Assessed value at its market value or some sort of legally authorized fractional assessment thereof also known as the taxable value

A

Valuation

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6
Q

The primary Revenue source for local government

A

Property tax

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7
Q

Calculate tax rate

A

Budget/assessed value

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8
Q

Calculate assessment ratio

A

Assessed value/market value

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9
Q

Calculate tax bill (property tax)

A

Subject property value times tax rate

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10
Q

Computing an effective tax rate

A

Assessment ratio times tax rate

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11
Q

When calculating an effective tax rate you can use

A

The triangle E A T

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12
Q

The right of any person to possess, use, enjoy and dispose of a thing

A

Property

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13
Q

Consist of interest, benefits and rights inherent in the ownership of land and anything permanently attached to the land or legally Defined as movable

A

Real property

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14
Q

Land and improvements permanently affixed thereto

A

Real estate

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15
Q

Property classes

A

Residential
Commercial
Industrial
Agriculture

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16
Q

Consist of movable items not permanently affixed to our part of the real estate

A

Personal property

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17
Q

Six basic rights associated with the ownership of property

A

Slugger

Sell, lease, use, give, enter, refuse

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18
Q

Governmental restrictions on property can be placed on bundle of rights

A

Pete

Taxation
Eminent domain
Police power
Escheat

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19
Q 
Rights of co owners
Condominium and subdivision
Covenants 
Mortgages
Easement 
Liens and judgements 
Leases
A

Private encumbrances

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20
Q

Ownership of all legal rights to property is known as

A

Fee simple (fee simple absolute)

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21
Q

A lease that conveys property rights from an owner (lessor) to a tenant (lesser)

A

Leasehold interest

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22
Q

Landlord interest

A

Leases fee interest

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23
Q

In order for property to have value it must have

A

(Used)

Utility
Scarcity
Desirability
Effective purchasing

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24
Q

Value of property for a specific use

A

Value in use

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25
Q

The amount an informed buyer would offer in exchange for a property under given market conditions

A

Value in exchange

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26
Q

Sacrifice made to acquire property

A

Cost

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27
Q

The amount asked, offered or paid for a property

A

Price

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28
Q

The monetary worth of property to buyers and sellers

A

Value

29
Q

The most probable price which a property should bring in a Competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming price is not affected yet undue stimulus

A

Market value

30
Q 
Anticipation 
Balance
Change
Competition 
Conformity 
Consistent use
Contribution
Increase and decreasing returns
Progression and regression
Substitution 
Surplus productivity 
Supply and Demand
A

Principles of balance

31
Q

Elements of demand

A

Demand = consumer

32
Q

Elements of supply

A

Supply = producer

33
Q

Estimate of value usually in writing of an adequately described property as of a given date

A

An appraisal

34
Q

The type of value usually estimated by the assessor is

A

Market value

35
Q

The ratio between the current tax bill and the property value

A

The effective tax rate

36
Q

The use that generates the highest net return to a property over a reasonable time period is called its

A

Highest and best use

37
Q

This principle States the maximum value of a Neighborhood is attained when the uses of land are perfectly complementary

A

The principle of balance

38
Q

Which principle affirms that land cannot be valued on the basis of one use while improvements are valued on the basis of another

A

Consistent use

39
Q

Four test that the appraiser must make in the analysis of the highest and best use

A

Legally permissible
Physically possible
Financially feasible
Most productive

40
Q

Property that can be moved without causing damage or change to either the item of property or to the structure to which it was attached

A

Personal

41
Q

Assessment level times the tax rate equals

A

Effective tax rate

42
Q

The forces at which the forces of supply and forces of demand meet

A

Equilibrium

43
Q

Two types of highest and best use analysis

A

As if vacant

As if improved

44
Q

The typical life cycle of a neighborhood includes

A

Growth
Stability
Decline
Revitalization

45
Q 
Consumer tastes and preferences 
Consumer income
Price is related commodities 
Consumer expectations 
Price of commodity
A

Elements in a market place

46
Q

Amount of goods that producers are willing to sell at a given price during a specific time period

A

Supply

47
Q

Appraisal process

A

Definition of the problem
Scope of work

Preliminary survey and planning

Data collection and analysis

Highest and best use

Application if the data and 3 approaches

Correlation/reconciliation

48
Q

Basis for the adjustments in the sales comparison approach to value is the principle of

A

Contribution

49
Q

Value is created by the expected future benefits to be derived from the property

A

Principle of anticipation

50
Q

Determining the identity of the property to be appraised is a part of which step in the appraisal process

A

First

51
Q

Three types of boundaries used to delineate neighborhoods are

A

Political
man made
Natural

52
Q

Under the step in the appraisal process that is termed data collection and analysis, specific data include

A

Site data

53
Q

Data and collection and analysis

General data

A

Neighborhood characteristics

54
Q

Data collection and analysis

Specific data

A

Site
Off site
Improvement

55
Q

Data collection and analysis

Comparative data

A

Cost
Sales
Income/expense

56
Q

Steps in cost approach

A

Estimate land value as if vacant

Estimate the total cost new of improvements as of the appraisal date

Estimate the total amount of depreciation

Subtract the total amount if depreciation from the cost new of primary improvements

Estimate the total cost new of any accessory improvements and site improvements. Then estimate and deduct all depreciation from the total cost new of improvements

Add site value to the depreciated cost of improvements to arrive at an indicated value by the cost approach

57
Q

Steps in the sales comparison approach

A

Data collection and verification

Analysis of market data to develop units of comparison and select attributes for adjustment

Development if reasonable adjustments

Application of adjustments to comparable sales

Analysis of adjusted sale prices to estimate value of subject

58
Q

Steps in the income approach

A

Estimate potential gross income (pgi) from market data

Estimate vacancy and collection loss and then subtract it from potential gross income (pgi)

Add miscellaneous income to arrive at effective gross income (EGI)

Analyze and estimate operating expenses

Subtract operating expenses from effective gross income to arrive at net operating income (NOI)

Select an appropriate capitalization method, technique and rate

Compute value by capitalizing the net operating income

59
Q

Four forces or factors of value

A 
(Pegs)
Physical
Economic 
Governmental 
Social
60
Q

A geographic area typically encompassing a group of sub areas that are influenced to a great extent baby the same economic factors

A

And economic area

61
Q

Comprises complementary land uses in which all properties are similarly influenced by the four forces affecting value and is sub area of an economic area

A

Neighborhood

62
Q

One of the steps an assessor must take in the discovery of property is to

A

Conduct periodic on site inspections of the property

63
Q

In the appraisal process data collection requires the assessor to collect

A

General data
Specific data
Comparative data

64
Q

What element of the marketplace is likely to contribute a change in supply?

A

Entrepreneur expectations

65
Q

Stratification is the first step in analyzing land sales and the
Primary sort is by

A

Market area

66
Q

The principle illustrating that market value is determined by such factors as zoning, rent controls, interest rates and so on is

A

Change

67
Q

The _________unit would be the appropriate unit when pedestrian access is an important consideration

A

Front foot

68
Q

When adjustments are being made to comparable sales, using the percentage adjustments in the direct sales comparison approach, the sequence of adjustments the appraiser must follow is

A

Financing, market conditions, location, physical characteristics

69
Q

The land valuation method that replicates the actions of subdivides or developers is known as the

A

Anticipated use or development method

IAAO 101 (5 decks)

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