SAEE Mass Appraisal Techniques 1 — Questions and Answers
Question 1: What is the primary purpose of mass appraisal?
- To appraise a single property in detail
- To value a group of properties simultaneously using standardized methods (Correct answer)
- To conduct environmental assessments on large parcels
- To estimate replacement cost for insurance purposes
Correct 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.
Question 2: What does the acronym CAMA stand for in property assessment?
- Certified Appraisal Methods Association
- Computer-Assisted Mass Appraisal (Correct answer)
- Comparative Analysis and Market Adjustment
- County Automated Market Assessment
Correct 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.
Question 3: Which statistic is the primary measure of uniformity in a mass appraisal ratio study?
- Mean absolute deviation
- Coefficient of Dispersion (COD) (Correct answer)
- Standard deviation of sales prices
- Price-Related Differential (PRD)
Correct 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.
Question 4: According to IAAO standards, what is the acceptable COD range for single-family residential properties in a typical market?
- 5% or less
- 15% or less (Correct answer)
- 25% or less
- 30% or less
Correct answer: 15% or less
IAAO standards specify a COD of 15% or less for single-family residential properties in a typical, active market.
Question 5: What is a sales ratio study designed to measure?
- The ratio of land value to total property value
- The relationship between assessed values and market sale prices (Correct answer)
- The proportion of properties sold in a given period
- The ratio of construction costs to market value
Correct 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.
Question 6: In a ratio study, a median assessment ratio of 0.92 indicates that on average, assessed values are:
- 8% above market value
- 8% below market value (Correct answer)
- 92% above market value
- Equal to market value with 8% error
Correct 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.
Question 7: Which type of regression analysis is most commonly used in mass appraisal valuation models?
- Logistic regression
- Multiple regression analysis (MRA) (Correct answer)
- Poisson regression
- Bayesian regression
Correct 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.
SAEE Mass Appraisal Techniques 1
What is the primary purpose of mass appraisal?