SAEE Mass Appraisal Techniques 2

Question 1

What does PRD stand for in the context of mass appraisal ratio studies?

Accepted Answer

Price-Related Differential

Answer

Property Rate Differential

Answer

Post-Revaluation Deviation

Answer

Parcel Ratio Dispersion

Question 2

According to IAAO standards, an acceptable PRD range indicating assessment equity is:

Accepted Answer

0.98 to 1.03

Answer

0.80 to 0.95

Answer

1.05 to 1.15

Answer

1.20 to 1.30

Question 3

What is 'stratification' in mass appraisal ratio studies?

Accepted Answer

Dividing the sample into subgroups to detect differential appraisal levels

Answer

Ranking appraisers by their performance metrics

Answer

Sorting properties by square footage only

Answer

Removing outlier sales from the dataset

Question 4

In mass appraisal, which model type assumes that property value equals the sum of the values of its individual components?

Accepted Answer

Additive model

Answer

Multiplicative model

Answer

Hybrid model

Answer

Hedonic log-linear model

Question 5

What is the purpose of 'time adjustment' in a mass appraisal sales ratio study?

Accepted Answer

To account for market price changes between sale date and assessment date

Answer

To adjust for the time it takes to complete an appraisal

Answer

To adjust for seasonal tax billing cycles

Answer

To normalize data entry time across assessors

Question 6

Which IAAO standard specifically governs mass appraisal for ad valorem taxation?

Accepted Answer

IAAO Standard on Mass Appraisal of Real Property

Answer

IAAO Standard on Ratio Studies

Answer

IAAO Standard on Automated Valuation Models

Answer

IAAO Standard on Assessment Administration

Question 7

What does a high COD (e.g., 30%) in a residential ratio study indicate?

Accepted Answer

There is significant non-uniformity in assessments across properties

Answer

Assessments are too high relative to market value

Answer

The jurisdiction uses an additive model exclusively

Answer

Assessment levels are progressively applied