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

PRD stands for Price-Related Differential, a measure used to detect assessment regressivity or progressivity relative to property value.

Question 2

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

Accepted Answer

0.98 to 1.03

Answer

IAAO standards indicate a PRD between 0.98 and 1.03 reflects acceptable equity, with values above 1.03 indicating regressivity and below 0.98 indicating progressivity.

Question 3

What is 'stratification' in mass appraisal ratio studies?

Accepted Answer

Dividing the sample into subgroups to detect differential appraisal levels

Answer

Stratification involves dividing properties into meaningful subgroups (by value range, neighborhood, or type) to identify if certain segments are assessed differently.

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

An additive model estimates total property value by summing the contribution of each characteristic (e.g., lot size value + living area value + garage value).

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

Time adjustment corrects sale prices to reflect market conditions as of the assessment date, ensuring accurate ratio study results when sales span different market periods.

SAEE Test Practice Test

SAEE Test Practice Test

SAEE Mass Appraisal Techniques 2