Assignment 4 Chapter 4 : Mass Appraisal Planning and Processes Flashcards
Quilan McDermont has decided to do an in-house revaluation.
Which of the following statements regarding in-house revaluation is FALSE?
- Appraisal staff cannot be reassigned to do data collection
- Key employees may be reassigned to manage certain phases of the revaluation
- Statutory requirements and dates will constrain the scheduling of some tasks.
- A full-time project coordinator should ideally be assigned to organize and manage a large-scale project.
Answer (1) Appraisal staff cannot be reassigned to do data collection.
Option (1) is false; Quilan should be aware that he can reassign his appraisal staff to do data collection.
Options (2), (3), and (4) are true.
Matthew Cognax has put out a request for proposals. He is worried that the bid will be evaluated solely on the basis of cost rather than on the quality of vendor. Matthew wishes to avoid this problem.
Which action(s) could Matthew take in order to ensure that the bid decision is not based solely on the price?
- Matthew can have potential contractors attend a conference where the technical requirements are explained by the assessment staff.
- Matthew can begin by obtaining only technical proposals from potential contractors that do not include prices.
- Both option (1) and (2)
- None of the above
Answer (3) Both option 1 and 2
Both Options (1) and (2) will help to ensure that the winning bid is based on quality and not just low cost.
Which regarding Revaluation is TRUE?
- Revaluation can create a lower tax base which causes the community to set higher tax rates.
- Appraisal inequities do not cause significant problems, because overall the city will collect the same amount of taxes
- Overappraisal create a lower tax base which cause the community to set higher tax rates.
- A full revaluation involves the collection and verification of property characteristics and the estimation of new value for only a single property.
Answer :
(1) Revaluation can create a lower tax base which causes the community to set higher tax rates.
Option (2) is false. Appraisal inequities can cause harm to the community as dissatisfied taxpayers will seek review, and these reviews cost general taxpayers money.
Option (3) is false because underappraisal, not overappraisal, creates a lower tax base that causes the community to set higher tax rates.
Option (4) is incorrect because a full revaluation involves the collection and verification of property characteristics and the estimation of new value for multiple properties.
The bid process to buy a CAMA system begins when the request for proposals is issued.
What is a step that the assessment office could perform when preparing and collecting bids?
- Someone with experience should be assigned to review the bids.
- Hire a consultant to assess the bid.
- Talk to vendors at conferences and see demonstrations of their CAMA system.
- All of the above
Answer (4). All of the above
The assessment office should perform all of the steps when preparing and collecting bids.
Maria Olet wants to select a vendor who will install a CAMA system.
Which of the following statements describes aspects that Maria should be concerned with ?
- Whether the vendor is financially stable
- Whether the vendor’s references are valid
- Whether the company has performed similar projects.
- All of the above
Answer : (4) All of the above
Maria should be concerned with all of the options listed.
Maria Olet has chosen a vendor for a CAMA system “CAMA sutra” and is currently writing up contract.
Which of the following statements regarding contracts is TRUE?
- If the contract is cancelled by the jurisdiction, then the jurisdiction would usually pay the vendor for reasonable closedown costs.
- A 100 percent performance bond will not help to ensure that a project is completed.
- Payment schedules should not be included in the contract, rather the total amount of the contract should be included.
- A contract cannot be cancelled even if key deliverables, on which the contract depends, are not available.
Answer (1) If the contract is cancelled by the jurisdiction, then the jurisdiction would usually pay the vendor for reasonable closedown costs.
Option (1) is true.
Option (2) is false because a 100 percent performance bond should help to ensure that
the project is completed.
Option (3) is false as payment schedules should be included in the contract.
Option (4) is false because a contract can be cancelled if key deliverables are not available.
Eliza Vera is in charge of a revaluation project in Wichtuck, a small town of 3,000 people. The town conducts a revaluation every few years. Eliza has a fast-approaching deadline and a very small staff who are always very busy. In preparation for this project, Eliza will most likely do which of the following?
- Create a budget
- Install a CAMA system
- Hire additional staff
- Clearly define her goals
- A,B, and D
- B and D
- A,C, and D
- All of the above
Answer : (3) A,C, and D.
Eliza would most likely create a budget and clearly define her goals for the project. Because Eliza is in a small town and because she has a fast-approaching deadline, she would also most likely hire additional staff.
Eliza would not likely install a CAMA system, as it would be hard to justify a large and costly system for such a small jurisdiction and relatively small project.
Eliza Vera is now considering which valuation approach she should take on a certain property. There is a single two-storey building on the property, with the Kwikee Convenience Store on the first floor and a family renting the upstairs portion.
Assume that the building is in its highest and best use. Which approach would most likely be ideal for valuing this unique property?
- The cost approach
- The direct comparison approach
- The income approach
- The residual approach
Answer : (3) The income approach. (renting–→ income)
Eliza would likely use the income approach to value this property. For commercial properties, the income approach is usually most appropriate, since you will be determining the value of an income stream.
The sales comparison approach would be inappropriate as the property is unique and unlikely to have comparable sales.
Tina Turnip is worried that the vendor “Dupeyew”, which she hired to install a CAMA system, is not going to perform acceptable or timely work. On the other hand, “Dupeyew” does not particularly trust Mrs. Turnip to pay them for their contract.
Which of the following options helps to ensure that the contractor will get paid, that the standard of work will be acceptable, and the work bill be completed on time?
- Bonuses can be given for work completed well and on schedule
- Payment can be held in escrow
- Penalty clauses can be imposed for poor workmanship and for time delays.
- All of the above.
Answer (4). All of the above.
All of the options are methods that ensure the contractor will get paid and that the standard of work is acceptable.
Regarding data verification and data collection, which of the following statements is TRUE?
- If the tax rate is fairly low, the community will require a high level of accuracy on the valuations.
- If permission to inspect the property is refused, then the appraiser can still estimate the property’s value.
- Self-reporting should not be used because people will falsify the value of their house in order to avoid property taxes.
- Review by exception means that appraisers are required to review all properties in the field without any exceptions.
Answer : (2). If permission to inspect the property is refused, then the appraiser can still estimate the property’s value.
Option (1) is false because if the tax rate is HIGH, the community will require a high level of accuracy on the valuations.
Option (3) is false because self-reporting can be used to detail and describe improvements made on the property.
Option (4) is false because review by exception refers to the process by which only properties that fail certain data checks will be field reviewed.
Option (2) is true:
if permission to inspect the property is refused, then the appraiser can still estimate the property’s value, but the taxpayer may lose the right to appeal the valuation
