Start Date

31-10-2017 10:15 AM

End Date

31-10-2017 11:45 AM

Description

Automated valuation models are mathematically based computer programs that produce on demand estimates of market value as of a given date based on market analysis of location, market conditions, and property characteristics from information previously collected. In 2003, IAAO adopted the first standard for evaluating the quality of the output of these models. Starting in 2015, the IAAO Technical Standards Subcommittee has been working to extensively revise this standard to reflect current technology and current needs of model users and developers. The new standard is to be finalized and submitted for Board approval this summer; this will permit the final, adopted version to be the focus of this presentation. The presentation will explain the original development and current redevelopment processes and will emphasize specific features of the draft standard and how model developers and users can employ this standard to improve property tax systems by better evaluating the quality of valuations developed by the utilization of AVMs in both the mass appraisal and single property appraisal environment. There will be particular emphasis on principles behind AVMs as well as minimum requirements, preferred requirements, and best practices for meeting the standard in design and preparation of the model and interpretation of results. Differences between the calibration and implementation of AVM models in single property appraisal and mass appraisal systems will also be emphasized. By explaining the linkage to quality assurance measures, the user will be exposed to ways to link AVM development and results to improved property tax systems that embody principles of uniformity. Developers too will better understand expectations for quality AVMs. Finally, we will examine the potential problems created by both data aggregation and the process of relating data based on geographic references to non-geographic resources.

Publication Date

October 2017

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Oct 31st, 10:15 AM Oct 31st, 11:45 AM

New developments with IAAO standards

Automated valuation models are mathematically based computer programs that produce on demand estimates of market value as of a given date based on market analysis of location, market conditions, and property characteristics from information previously collected. In 2003, IAAO adopted the first standard for evaluating the quality of the output of these models. Starting in 2015, the IAAO Technical Standards Subcommittee has been working to extensively revise this standard to reflect current technology and current needs of model users and developers. The new standard is to be finalized and submitted for Board approval this summer; this will permit the final, adopted version to be the focus of this presentation. The presentation will explain the original development and current redevelopment processes and will emphasize specific features of the draft standard and how model developers and users can employ this standard to improve property tax systems by better evaluating the quality of valuations developed by the utilization of AVMs in both the mass appraisal and single property appraisal environment. There will be particular emphasis on principles behind AVMs as well as minimum requirements, preferred requirements, and best practices for meeting the standard in design and preparation of the model and interpretation of results. Differences between the calibration and implementation of AVM models in single property appraisal and mass appraisal systems will also be emphasized. By explaining the linkage to quality assurance measures, the user will be exposed to ways to link AVM development and results to improved property tax systems that embody principles of uniformity. Developers too will better understand expectations for quality AVMs. Finally, we will examine the potential problems created by both data aggregation and the process of relating data based on geographic references to non-geographic resources.