APR 107 Flashcards
An appraisal method which allows for a universe of properties to be valued as of a specific date is called \_\_\_\_\_\_\_\_\_\_\_\_. A. Universal Appraisal. B. Fee Appraisal. C. Mass Appraisal. D. Ad valorem Appraisal.
C. MASS APPRAISAL
The primary purpose of mass appraisal in Colorado is to _____________.
A. estimate the value of all personal property.
B. obtain a loan or secure financing for property.
C. raise taxes.
D. estimate property value for ad valorem taxation.
D. estimate property value for ad valorem taxation.
For Colorado’s 2-year reappraisal cycle, the odd-numbered year is called the
________________, and the even-numberedyear is considered the _______________.
A. beginning of the cycle, end of the cycle.
B.reappraisalyear, intervening year.
C.interveningyear, reappraisal year.
D. appraisal year, assessment year.
B.
Mass appraisal and single property appraisal are similar in that they both______________.
A. use small quantities of specific data.
B. require massive amounts of sales data.
C. need a large staff of people to complete.
D. establish a value for individual properties.
D.
Identification of the Problem is step 1 of the Appraisal or Valuation Process. This includes
_______________.
A. identification of the intended use of the appraisal.
B. identification of the 3 approaches to value.
C. an opinion of site value.
D. identification of the amount of time it will take to complete the process.
A.
When utilizing the sales comparison approach, selection of comparables for single-
property appraisal is specific to the subject, whereas for mass appraisal, comparable
selection _______________.
A. is based on style or design.
B. is done through paired sales analysis.
C. includes all qualified sales.
D. includes sales as close to the inspection date as possible.
C.
Sources for developing cost data such as; a cost estimation service, local contractors and
property owners are the same for mass appraisal and single-property appraisal.
TRUE or FALSE
T.
Classification for improved property is based on ______________.
A. its actual use on the appraisal date.
B. its actual use on the assessment date.
C. its actual value in use.
D. how it was originally intended to be used when constructed.
B
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is used by taxing entities to calculate spending and revenue limitations and create new mill levies. A. The certification of values B. The tax warrant C. The abstract of assessment D. The local tax rate
A
Property tax revenue is used to provide funding for local governments and replenish the
general fund of the State of Colorado.
TRUE or FALSE
F
COMPONENTS OF MASS APPRAISAL SYSTEM
PROP DATA COLLECTION MARKET DATA COLLECTION DATA ANALYSIS VALUATION ADMINISTRATION
The final product of the ad valorem mass appraisal
tax warrant, due to Treasurer Jan 10th
Which of the following is not a function of the assessor’s office? A. Value B. List C. Classify D. Tax
D. TAX
Information about improvements, such as number of bedrooms, quality of construction,
total gross living area, or roof type can usually be obtained through__________________.
A. the local building department.
B. builders and developers working in the area.
C. real estate agents.
D. all of the above.
D
The best method to obtain interior information for an improvement is to ______________.
A. discreetly look through the windows as you measure the exterior.
B. contact the property owner.
C. use your best judgment based on other properties in the neighborhood.
D. check the internet to find interior photos.
B
A property component’s impact on the total value of the property may increase or decrease
based on ______________ and ______________.
A.supply,demand.
B. state law, local policy.
C.advertising,marketing.
D.quantity,quality.
A
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ are property characteristics which account for differences in prices and sales property values. A. Highest and best use considerations B.Economic forces C.Elements of comparison D. Units of comparison
C
______________ is an example of qualitative data that describes subjective characteristics
of a property, whereas _____________ is quantitative data that is objective in defining
propertycharacteristics.
A. Flooring type, gross living area
B. Total square footage, a long driveway
C.Style,design
D. Finished basement square footage, number of bedrooms
A
Exterior building measurements should be rounded to the nearest foot or half foot to make
total square footage easier to calculate.
TRUE or FALSE
F
If the actual value of a property for assessment is $250,000and the property owner spends
$70,000 to remodel the interior, then sells the property for $350,000, what amount should
be value tracked in the county’s CAMA system?
A.$100,000
B.$70,000
C.$350,000
D. not enough information
D
Confirmation of sales is an important part of the data collection process. The main
purpose of sales confirmation is to ___________________.
A. determine property values for the reappraisal level of value.
B. determine which sales will be included on the Qualified and Non-qualified lists.
C. determine which property characteristics impact value in a market area.
D. determine which transactional adjustments will be made to the sales prices.
B
Sales which occur after the June 30 appraisal date but prior to the subsequent January 1
assessment date are irrelevant in determining level of value.
TRUE or FALSE
F
4 time trending techniques
paired sales
resale
sales ratio
mra
the first step in model calibration
sales ratio study
The formula MV = LV + IV is most closely related to which approach? A. Sales Comparison B. Cost C Income. D. None of the above
B
CAMA stands for… A. Computer Assisted Market Approach B. Central Appraisal Model Assistance C. Computer Assisted Mass Appraisal D. Computer Aided Model Approach
C
Sales ratios studies…
A. are at the beginning and end of modeling
B. express a relationship of appraisal competence to a sales price
C. Both A & B
D. Neither A or B
A
Modeling equations draw from \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ to determine values using a CAMA system? A.Data B.Tables C.Themarket D. Marshall Valuation Service
B
If a property sells for $120,000 and the assessor’s actual value is $160,000, the indicated sales ratio is? A.0.75 B.1.33 C.0.80 D.1.20
B
Which of the following is an accurate statement about Residential Improved Model
Specification?
A. It should contain a land component.
B . It should contain a design type variable.
C. It should provide a total property value.
D. It should reflect market information.
D
The first step in developing a mass appraisal model is __________________________?
MODEL SPECIFICATION
- Correcting rates in tables to affect a credible value is __________________________?
CALIBRATION
Name three types of visual statistical applications that can be used to analyze multiple variables. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
HISTOGRAM, BOX PLOTS, SCATTER PLOTS, PIVOT TABLES
It is always correct to adjust the largest variable first when calibrating models to
determine value.
TRUE or FALSE
F
When analyzing single variables, it’s important to always _______________ your data
before you create a __________________ ____________________ to determine
whether you have a normal bell curve.
ARRAY, FREQ. DIST.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_measures whether higher valued properties are assessed at the same level as lower valued properties. A Statistics. B . Coefficient of Dispersion C. Median sales ratio D Bias.
D
The correct formula for a COD is:
A. Weighted mean sales ratio/mean sales ratio
B.AAD/median sales ratio X 100
C. Mean sales ratio/weighted mean sales ratio X 100
D. Median sales ratio/weighted mean sales ratio X AAD
B
COD = AAD -:- Median Sales Ratio x 100
Name three levels of appraisal uniformity.
A._______________________________________
B._______________________________________
C.__________________________________
Range
Average Absolute Deviation
Coefficient of Dispersion (COD)
What is the mean and median of the following ratios: 0.95 0.97 1.17 1.09 1.01 0.99 1.04 0.89 A. 1.00 for both B. 0.99 & 1.00 C. 1.01 & 1.00 D. 1.17 & .089
C
MEAN 1.01
MEDIAN 1
Properties that are unique and have trouble being valued by mass appraisal models are known as: A.Commercial. B. Outliers. C. Special purpose. D.Flagged.
B
Progressive and regressive bias is measured by the: A. Coefficient of dispersion. B . Average absolute deviation. C.Range. D. Price related differential.
D
The number of required ratios for reliable SBOE statistical testing is:
A 10..
B 30.
C. 50.
D. as many as possible during the data collection period.
B
When complying with SBOE requirements, you must first have a __________________
that is in compliance before you calculate your __________________
A. median sales ratio / coefficient of dispersion.
B . unweighted mean sales ratio / price related differential.
C. assessor’s value / median sales ratio.
D. appraisal ratio / outlier value.
A
The final step in the mass appraisal process is compliance with SBOE requirements.
TRUE or FALSE
F- FINAL RECONCILIATION
A coefficient of dispersion of 5.0 or less typically indicates what?
A. Values have been placed on properties to match sales prices.
B . You are doing your job extremely well.
C. You are out of compliance with SBOE requirements.
D. More analyses are needed.
A
Appraisal Ratio (A/A)
Assessor Determined Actual Value -:- Assessor Previous Actual Value
(or appraised market value)
_______ refers to the midpoint (median) ratio at which
properties are appraised
Level
________ relates to the fair and equitable treatment
of properties within and between groups of properties as measured by the
dispersion (difference) from the midpoint
Uniformity
______, which is a form of uniformity,
measures whether higher valued properties are assessed at the same level as
lower valued properties.
Bias
The __________ is an aggregate ratio determined by the following steps:
Sum the appraised values for the entire sample.
Sum the sales prices for the entire sample.
Divide the total of the appraised values by the total of the sales prices.
weighted mean
To calculate the ______;
a) Calculate the ratio for each sale.
b) Determine the median ratio.
c) Subtract the median from each ratio.
d) Sum the absolute values of the computed differences.
e) Divide this sum by the number of ratios.
AAD
PRD =
Mean Sales Ratio -:- Weighted Mean Sales Ratio
COD REQUIRES THE MEAN OR MEDIAN?
MEDIAN
To calculate the AAD; a) b) c) d) e)
a) Calculate the ratio for each sale.
b) Determine the median ratio.
c) Subtract the median from each ratio.
d) Sum the absolute values of the computed differences.
e) Divide this sum by the number of ratios.
The assessment level of a reappraisal program must meet the following
measures of level of value about the median sales ratio
-VacantLand:
-Residential:
Including Condos and Mobile Homes
-Commercial/Industrial:
.95-1.05
The assessment level of a reappraisal program must meet the following
measures of level of value about the median sales ratio
d.Agricultural:
Land and Residences
f.OtherAgricultural:
h.PersonalProperty:
i.OilandGasEquipment
.90-1.10
The assessment level of a reappraisal program must meet the following
measures of level of value about the median sales ratio
Agricultural:
Support Structures
.80-1.20
The assessment quality of a reappraisal program must meet the uniformity of values as measured by the coefficient of dispersion ; a.VacantLand: Including Condos and Mobile Homes c.Commercial/Industrial: e.AgriculturalResidences: f.OtherAgricultural: all above=\_\_\_\_\_\_or less
b.Residential: ____or less
20.99, 15.99
For real property, assessors must mail or email the NOV by ______
May 1.
In what month does the protest of real property typically take place? A April.. B . May. C June.. D July..
B
During the appeals process, it is the ___________________’s responsibility to show the
classification or valuation is incorrect?
A.Assessor.
B.Appraiser.
C.Taxpayer.
D.Hearing officer.
C
The only time a value can change in an intervening year is for \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_? A. An unusual condition. B.New construction. C.Assessor’s preference. D. A classification change.
A
Name the 5 levels of appeal. 1. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 3. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ or \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ or \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 4. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 5. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
- PROTEST
- CBOE
- BAA
OR BINDING ARBITRATION
OR DISTRICT COURT - COURT OF APPEALS
- CO SUPREME COURT
What data-collection period should be used in determining values in an intervening year?
A. The prior 18 months.
B. The same as used for the reappraisal.
C. The twelve months between assessment dates.
D. Enough time to provide for accurate values.
B
It is the taxpayer’s responsibility to provide an opinion of their value when appealing an
assessment.
TRUE or FALSE
F-just have to prove you are wrong
formula for COD–> C=AMP
COD=AAD/medx100(percent)
The Cherne case:
says that you cannot appeal a residential value based on
its component parts! E.g. an, owner cannot appeal a total value on the basis of whatever land and building value split you have published.
The Podoll case: requires equality in
methodology, E.g. an, owner cannot appeal
the value of their home ______________________
compared to their neighbor’s home.
ABSTRACT OF ASSESSMENT
ALL ASSESSED VALUES BY CLASS TO DPT
AUG 25
CERT OF VALUES
TO TAXING ENTITIES
AUG 25, RECERT BY DEC 10
TAX WARRANT
FINAL PRODUCT OF MASS APPRAISAL PROCESS
DELIVER TO TREASURER
JAN 10
APPRAISAL RATIO
CURRENT VALUE/OLD VALUE
