Mass Appraisal Techniques Flashcards
7 cards from real SAEE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Mass Appraisal Techniques flashcards as text
What distinguishes mass appraisal from a single-property appraisal?
Answer: Mass appraisal values multiple properties simultaneously using statistical models and standardized procedures
Unlike single-property appraisal, mass appraisal values groups of properties at once using standardized data, automated models, and statistical testing to ensure efficiency and consistency.
In mass appraisal, what is the function of 'sales validation'?
Answer: Screening sales to ensure only arm's-length, market-representative transactions are used in ratio studies
Sales validation screens transactions to exclude non-arm's-length sales (e.g., foreclosures, family transfers) that would distort ratio study results.
Which term describes the process of adjusting a mass appraisal model when it consistently produces values above or below market levels?
Answer: Calibration
Calibration is the process of adjusting model parameters so that estimated values align with market evidence, correcting systematic over- or under-valuation.
What is the Price-Related Bias (PRB) used to measure in mass appraisal?
Answer: The tendency for assessments to be regressive or progressive relative to property value on a percentage basis
PRB measures whether assessment ratios systematically increase or decrease as property values rise, indicating vertical equity (regressivity or progressivity) in percentage terms.
In a CAMA system, what is the primary role of a 'neighborhood' or 'market area' delineation?
Answer: To group properties that exhibit similar market influences and value trends for modeling purposes
Neighborhood delineation groups properties with similar market characteristics so that valuation models can capture local influences and produce more accurate value estimates.
What does the term 'revaluation cycle' refer to in mass appraisal?
Answer: The schedule by which all properties in a jurisdiction are systematically reappraised
The revaluation cycle is the established schedule (e.g., annual, biennial, or every four years) on which a jurisdiction updates the assessed values of all properties to reflect current market conditions.
Which of the following best describes the 'assessment level' in a mass appraisal ratio study?
Answer: The median (or mean) ratio of assessed values to sale prices
Assessment level refers to the central tendency (typically the median ratio) of assessed values compared to sale prices, indicating whether properties are assessed at, above, or below market value.