SAEE Mass Appraisal Techniques 5

Question 1

In mass appraisal, 'time trending' of sales is performed primarily to:

Accepted Answer

Adjust historical sales prices to reflect current market conditions at the assessment date

Answer

Time trending adjusts sale prices to the lien date so that sales from different periods can be validly compared within the same model.

Question 2

Which of the following best describes an 'arm's length' transaction in the context of mass appraisal sales ratio studies?

Accepted Answer

A sale between unrelated, motivated parties with adequate market exposure

Answer

An arm's length transaction occurs between independent, willing parties with full knowledge of the facts, making it a valid market indicator.

Question 3

In additive multiple regression for mass appraisal, what does a negative coefficient for 'distance to city center' most likely indicate?

Accepted Answer

Properties closer to the city center tend to have higher values

Answer

A negative coefficient means that as distance increases, value decreases — indicating proximity to the city center adds value.

Question 4

What is the purpose of an 'equalization study' in the context of mass appraisal?

Accepted Answer

To compare assessment levels across different jurisdictions or property classes for fairness and uniformity

Answer

Equalization studies compare assessment ratios across jurisdictions or classes to identify and correct systematic inequities in assessments.

Question 5

A mass appraisal model that consistently undervalues newer properties compared to older properties of similar market value is exhibiting:

Accepted Answer

Horizontal inequity based on age bias

Answer

Systematic under- or over-appraisal of a specific property characteristic (like age) within the same value range is a form of horizontal inequity.

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