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Business Definition for: mass appraising
mass appraising
typically used by tax assessors, an effort to determine salient characteristics of properties in a given submarket, to allow an approximation of value for each. Sophisticated statistical techniques are used frequently in mass appraising.
Example: Through use of multiple regression statistics, the tax assessor developed the formula in Table 31 to estimate the value of homes in a certain neighborhood.
| TABLE 31 | |||
| MASS APPRAISAL | |||
| Add: | Intercept | = | $20,000 |
| Baths above 1 | = | 10,000 | |
| Size/per square-foot | = | 45 | |
| Garage | = | 12,000 | |
| Age/per year | = | - 1,000 | |
| Fireplace | = | 5,000 |
A2,000-square-foot home, 10 years old, with one fireplace, a garage, and two baths would be assessed at $127,000 as follows:
| Intercept $20,000 |
+ | Baths $10,000 |
+ | Size $45(2,000) |
+ | Garage $12,000 |
+ | Age 10(-$1,000) |
+ |
| Fireplace $5,000 |
= | Assessment $127,000 |
= |
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