Why Does the Use of Mass Appraisal Methodology Result in Errors?
The reliability of Mass Appraisal methodology is directly dependent on the: • Similarity of the available comparable sales data. • The accuracy of the subject and comparable sales data. Similarity of Comparable Sales Data: It is important to remember that the greater the number of differences between a property and a comparable sale, the greater the chance of making an error in quantifying the market adjustment for that difference. Therefore, if the sales data utilized to value your property differs substantially, there is a stronger likelihood of an unjust valuation being assigned to your property. Properties within the same neighborhood and market segment can vary significantly in size, quality, effective age, and views. The effective sales price can be significantly influenced by concessions and personal property such as furnishings and club memberships. Furthermore, these markets are sometimes volatile with the actions of motivated buyers and sellers sometimes skewing sales data. A
