Which types of structures are considered basic in mass appraisal models?

In mass appraisal models, basic structures are those that help define the relationships between property characteristics and their estimated values. The combination of Additive, Multiplicative, and Hybrid-generic models is foundational in this context.

Additive models estimate property value by summing the contributions of individual characteristics. Each characteristic, such as square footage or number of bedrooms, adds a specific value to the overall estimation, allowing for straightforward interpretation and use.

Multiplicative models, on the other hand, impose a scaling effect on characteristics. This means that rather than simply adding values, the contribution of some property features might be multiplied by coefficients that reflect their relative importance or interaction with other variables. For instance, the impact of having more bedrooms on property value can vary depending on the total square footage of the home.

Hybrid-generic models combine aspects of both additive and multiplicative approaches, providing flexibility to account for various property types and market conditions. This combination allows appraisers to model complex relationships in a way that either can’t be captured through purely additive or multiplicative means.

Recognizing these three structures as the basic components of mass appraisal models enhances the understanding of how different property features interact to influence market value, making option C the most suitable answer.