Property Valuation
Indiana appraisers must be aware of potential racial bias in automated valuation models (AVMs) because:
AAVMs are always accurate
BAVMs trained on historical sales data may perpetuate historical patterns of discriminatory valuations in certain neighborhoods✓ Correct
CAVMs are only used for commercial property
DAVMs are required by all Indiana lenders
Explanation
AVMs trained on historical data may reflect historical patterns of racial discrimination in property values (the result of redlining, steering, and other discriminatory practices). Regulators and the industry are working to identify and correct these biases.
Related Indiana Property Valuation Questions
- The economic life of an Indiana building in appraisal represents:
- Indiana's Value in Use differs from Market Value in that value in use represents:
- Indiana's New Markets Tax Credit (NMTC) program is relevant to appraisal when:
- The FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) requires independent appraisals for federally related transactions above what threshold for most residential properties?
- The terminal cap rate in a DCF analysis for Indiana investment property is used to:
- The principle of conformity in Indiana real estate valuation holds that:
- The cost approach to appraisal estimates value by:
- Exposure time in an Indiana appraisal is defined as:
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