deck_1036623 Flashcards by Judy Casey

Mass appraisal uspap standard #?

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Supply factors

Building costsInterest ratesEconomic conditions

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A physical, conceptual, or mathematical representation of how something works

Model

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Income model structure

I\R=V

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Basic steps of model Building

SpecificationCalibrationStructure

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Model specification

What to include in what format

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Model calibration

Development of variation schedules, formulas, tables

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Model structure

AdditiveMultiplicativeHybrid

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Hybrid additive cost model

MV=GQx((PlxLSIZE)+(PBxBSIZE))

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Basic sales comparison approach

MVs=Sc+ADJc

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General appraisal process 7 steps

Define valuation problemDetermine scope of workPreliminary analysis and planSelect and collect dataDetermine highest and best useApply appropriate valuation approachesReconcile and report opinion of value

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Demand LCQ

LocationConditionQuality of construction

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Supply BIE

Building costsInterest ratesEconomic conditions

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Exploratory data analysis-DDMT

Data quality reviewData distributionsMarket patterns and relationshipsTime trends

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Model development

SpecificationCalibrationQuality assurance

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Model ARR

ApplicationReview and reconciliationFinal value determination

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Batch data entry

Held in temporary file until uploaded

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Start and end with

Ratio study

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Binary variable

Quant-Yes or no. (0,1) Qual-nom-swimming poolQual-ord-view of mountains

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Discrete variable

Qualitative items that have 3 or more predefined values

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Range edit

Sq ft 400-9000Yr blt

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Consistency edit

Lot area > gfla

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Convey information about presumed rank

Ordinal values

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May be alphabetic or numerical but convey nothing about rank

Nominal vslues

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Data inventory manuals describe

How to collect and code data

The completeness of the available data

Quantity

Standard deviation

Find meanSubtract and square differencesSum and divide by n-1Find sq rt

COV

Divide SD by meanMultiply by 100

Dependent is on which axis?

vertical

Independent variable on which axis?

Horizontal

Polygon chart aka

LineCan show multiple variables

Chart a frequency distribution using a

Histogram

5 measures of dispersion PQRSC

PercentilesQuartilesRangeStandard deviationCOV

Shows the distribution of values for two binary or discrete variables

Cross tabulations

A ____can be used to show several variables simultaneously

Polygon

_____ compare statistics by strata, like av sale price by nhbd

Breakdowns

______ show summary stats for dep variable by combo of 2 ind variables. Av sale price per sq ft by grade and nhbd

Contingency table

Three components of property tax system

Assessment, appeal, collection

4 components of mass appraisal system-DEMM

Data collectionExploratory data analysisModel developmentModel application review and reconciliation

Three methods to evaluate data adequacy

FieldRatioPilot

Multiple parcels should/should not be auto excluded

Not

1,2,3 SD

68,95,99

COV is SD divided by

Mean ratio

PRD LOW=POOR

PRO

PRD HIGH=RICH

REGRESSIVE

PRD FORMULA

Mean/weighted mean

____ or line charts can accommodate multiple data sets on the same graph

Polygon

Direct costs

MaterialsLaborSupervisionBuilding permits

Indirect costs

Arch. And eng. feesInsuranceInterestTaxes during constructionMarketing

Most common method in mass appraisal cost approach

Comparative unit

Obtaining sales data 3 diff ways

MailTelephoneInterview

Most common measure of appraisal uniformity

COD

A measure of vertical equity

PRD

Iaao standard level of appraisal between

90-110

______ should contain replacement cost tables, depr sched, guidelines

Cost manuals

Deprec sched must be derived from the

Market

Floors and roofing are examples of ____ cost components

Horizontal

Quantity survey requires

Detailed knowledge

Competitive unit costs are expressed on a per _____ basis

Sq ft

A good way to show the distribution of qualitative variables is

Cross tabulation

Relationship between 2 quantitative variables

Scatter diagram

2 binary or discrete variables

Cross tab

Cod based on

Median

Cov based on

Mean

Market value is constant+property featuresxdollar rates

Additive model

Market value is base rate x adj factors

Multiplicative

Market is parts of additive and multiplicative

Generic hybrid

Strengths of mra

Based on salesNo land valueEffective software

Limitations of mra

Requires accurate data and salesCannot directly calibrate the hybrid generic models

3 approaches to stratification and location analysis

Geographic stratificationCluster analysisGlobal model w location adjustments

_____ analysis can be very effective for homogeneous properties

Per unit value

Estimating unknown data based on known is

Mra

Mv=b0

Additive

Broad geographic areas with similar economic influences

Market areas

Group similar subdivisions and neighborhoods

Cluster

Trial and error process

AEP

The systematic appraisal of groups of properties using standard procedures and statistical testing

Mass appraisal

Bo constant

Additive

Generic hybrid

Base rate

Multiplicative

MV=I/R

MV=NOI/OAR

Data collection and maintenance-market data

Sales dataIncome and expenseCost

Histogram/bar chart how many variables

Percentile formula

K=kn+p

Cross tabulations how many variables

2 variables

Line chart has multiple

Variables

Divide appraisal value by

Sales price

Calculating COD

Find medianCalculate absolute deviationSum differencesDivide by # of salesDivide by median

Cost table sources. SMIC

Commercial cost servicesMass appraisal companiesState agenciesIn house

Unit in place cost method

Estimate costs of each component Horizontal-floors, roofingVertical-walls

Iterative trial and error process

AEP

Automated comparable sales analysis

Computerized algorithm selects most comparable sales

Limitation of comparable sales method

Values may be choppy

Cluster analysis identifies ____ groups of properties

Homogeneous

Lvrsa

Find and computing distances from value influence centers

Data collection must be ____ and _____ to ensure quality control

Edited tested

The dep variable in gross income models should be

Gross income per unit

Ind variables in gross income models should be

Property characteristics

Most common stratification in mass modeling

Geographic

basic model for cost approach is

MV=LV+(RCN-D)

finding a third quartile

.75(n)+.75

A good way to show the distribution of qualitative variables is

cross-tabulation

Current cost of building is 200k. Current cost factor is 180, 3 yrs ago 150. What would this building cost 3 years ago?

150/180=.83*200=166k