Mass Appraisal Techniques Flashcards

What is the primary purpose of mass appraisal?

Answer: To value a group of properties simultaneously using standardized methods

Mass appraisal is the systematic valuation of multiple properties simultaneously using common data, standardized methods, and statistical testing.

What does the acronym CAMA stand for in property assessment?

Answer: Computer-Assisted Mass Appraisal

CAMA stands for Computer-Assisted Mass Appraisal, referring to systems that use software and databases to value large numbers of properties.

Which statistic is the primary measure of uniformity in a mass appraisal ratio study?

Answer: Coefficient of Dispersion (COD)

The Coefficient of Dispersion (COD) measures the average percentage deviation of ratios from the median ratio, making it the primary uniformity indicator.

According to IAAO standards, what is the acceptable COD range for single-family residential properties in a typical market?

Answer: 15% or less

IAAO standards specify a COD of 15% or less for single-family residential properties in a typical, active market.

What is a sales ratio study designed to measure?

Answer: The relationship between assessed values and market sale prices

A sales ratio study compares assessed values to market sale prices to evaluate the accuracy and uniformity of a jurisdiction's assessments.

In a ratio study, a median assessment ratio of 0.92 indicates that on average, assessed values are:

Answer: 8% below market value

A median ratio of 0.92 means assessments are, on average, 92% of market value — or approximately 8% below market value.

Which type of regression analysis is most commonly used in mass appraisal valuation models?

Answer: Multiple regression analysis (MRA)

Multiple Regression Analysis (MRA) is the most widely used statistical tool in mass appraisal because it can model the relationship between property value and multiple characteristics simultaneously.