SAEE Mass Appraisal Techniques 3

Question 1

What distinguishes mass appraisal from a single-property appraisal?

Accepted Answer

Mass appraisal values multiple properties simultaneously using statistical models and standardized procedures

Answer

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.

Question 2

In mass appraisal, what is the function of 'sales validation'?

Accepted Answer

Screening sales to ensure only arm's-length, market-representative transactions are used in ratio studies

Answer

Sales validation screens transactions to exclude non-arm's-length sales (e.g., foreclosures, family transfers) that would distort ratio study results.

Question 3

Which term describes the process of adjusting a mass appraisal model when it consistently produces values above or below market levels?

Accepted Answer

Calibration

Answer

Calibration is the process of adjusting model parameters so that estimated values align with market evidence, correcting systematic over- or under-valuation.

Question 4

What is the Price-Related Bias (PRB) used to measure in mass appraisal?

Accepted Answer

The tendency for assessments to be regressive or progressive relative to property value on a percentage basis

Answer

PRB measures whether assessment ratios systematically increase or decrease as property values rise, indicating vertical equity (regressivity or progressivity) in percentage terms.

Question 5

In a CAMA system, what is the primary role of a 'neighborhood' or 'market area' delineation?

Accepted Answer

To group properties that exhibit similar market influences and value trends for modeling purposes

Answer

Neighborhood delineation groups properties with similar market characteristics so that valuation models can capture local influences and produce more accurate value estimates.

SAEE Test Practice Test

SAEE Test Practice Test

SAEE Mass Appraisal Techniques 3