Industry Best Practices Flashcards
7 cards from real CAE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Industry Best Practices flashcards as text
What is the IAAO-recommended PRD range?
Answer: 0.98 to 1.03
IAAO considers a PRD between 0.98 and 1.03 acceptable for vertical equity.
A PRD of 0.95 most likely indicates which condition?
Answer: Progressivity, where high-value properties are over-assessed relative to low-value properties
A PRD below 0.98 suggests progressivity, with higher-value properties assessed at relatively higher ratios.
Which professional standard governs the ethics and conduct of appraisers, including mass appraisal reporting under Standard 6?
Answer: USPAP
The Uniform Standards of Professional Appraisal Practice include Standards 5 and 6 for mass appraisal.
Which IAAO best practice applies to the use of automated valuation models (AVMs) in assessment?
Answer: AVMs should be calibrated, tested with ratio statistics, and documented
The IAAO Standard on Automated Valuation Models requires calibration, testing, and documentation of model performance.
Which best practice helps an assessment office maintain public trust?
Answer: Clear communication of assessment procedures, values, and appeal rights
IAAO's Standard on Public Relations stresses transparency and clear explanation of the assessment process.
Under IAAO guidance, when should a sale with a personal property component be used in a ratio study?
Answer: Only after the value of the significant non-realty items is removed from the price
Sale prices should be adjusted to remove non-real-property items so that the ratio compares like with like.
What is a primary purpose of IAAO's Standard on Digital Cadastral Maps and Parcel Identifiers?
Answer: To make sure each parcel is accurately mapped and uniquely identified for complete, accurate assessment rolls
Accurate parcel maps and unique identifiers make sure every property is found, listed, and valued.