Property Valuation
Iowa property taxes are based on:
AThe listing price of the property
BThe assessed value as determined by the county assessor, multiplied by the levy rate✓ Correct
CThe purchase price from the most recent sale only
DA flat rate set annually by the IREC
Explanation
Iowa property taxes are calculated by applying the local tax levy rate (set by taxing districts) to the property's assessed value as determined by the county assessor. Assessment is based on estimated market value at a specified rollback percentage.
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Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
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