An appraiser in Colorado is asked to perform a 'mass appraisal' for property tax purposes. Mass appraisal differs from a single-property appraisal in that:
Why B. Mass appraisal uses statistical models to value many properties simultaneously using standardized data, while a single-property appraisal involves a detailed individual analysis Is Correct
Answer B: B. Mass appraisal uses statistical models to value many properties simultaneously using standardized data, while a single-property appraisal involves a detailed individual analysis
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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