Property Valuation
Colorado's 'mass appraisal' process used by county assessors differs from an individual appraisal in that it:
AIs more accurate because it uses more data
BValues all properties of a class simultaneously using standardized methods for tax assessment✓ Correct
CIs only used for commercial properties
DRequires a physical inspection of every property
Explanation
Mass appraisal is the process of valuing a large number of properties simultaneously using standardized methods and statistical modeling. Colorado county assessors use mass appraisal to establish assessed values for all properties for property tax purposes.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
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