What are systematic errors in property valuations known as?

Systematic errors in property valuations are known as assessment bias. This term refers to consistent inaccuracies in the appraisals that arise due to flaws in the appraisal system, methods applied, or data used. These biases can result from a variety of sources, including socioeconomic factors, trends in particular neighborhoods, or analytical methods that unfairly favor one type of property over others. Understanding assessment bias is crucial for appraisers as it highlights the importance of employing standardized methodologies and ensuring that their valuations are fair and accurate, avoiding any unintentional favoritism or discrimination in the process.

The other terms, while they relate to aspects of property valuation, do not accurately describe systematic errors. Classification refers to how properties are categorized, valuation procedures pertain to the step-by-step processes followed during appraisals, and standard for level of assessment deals with the benchmarks applied to evaluate overall assessment performance rather than errors within specific valuations. Hence, these options do not capture the essence of systematic errors as clearly as assessment bias does.