IAAO Mass Appraising Practice Exam 2025 – Complete Study Resource

Question: 1 / 400

What is the acceptable range for the price-related differential (PRD)?

0.90 to 1.00

0.95 to 1.05

0.98 to 1.03

The price-related differential (PRD) is an important measure in mass appraisal, as it assesses the equity of property assessments across different value segments. An acceptable range for PRD is typically between 0.98 and 1.03. This range indicates that properties are assessed fairly relative to their market values; a PRD below 1.00 suggests that lower-value properties may be overassessed compared to higher-value properties, while a PRD above 1.00 may indicate that lower-value properties are underassessed.

The range of 0.98 to 1.03 is supported by industry standards and associations such as the International Association of Assessing Officers (IAAO). This standard reflects a balanced approach to ensuring that assessors do not disproportionately burden one class of property over another, promoting fairness and equity in property taxation. Thus, option C aligns with these established guidelines and is considered the correct response.

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1.00 to 1.10

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