What is the purpose of calibration in mass appraisal models?

Calibration in mass appraisal models serves to enhance the accuracy of the appraisal process by aligning predicted values generated by the model with actual observed sales data. This involves adjusting the model's parameters and coefficients to ensure that the appraised values reflect real market conditions more closely. By performing calibration, appraisers can systematically refine their models based on empirical evidence, allowing them to better account for various market dynamics and property characteristics.

Through this process, the appraisers can identify any discrepancies between market performance and the model's predictions, making necessary adjustments that lead to more accurate property valuations. This reinforces the reliability of the appraisal model, ensuring that it produces values that are justifiable and in line with current market realities. Therefore, calibration is essential in maintaining the integrity and effectiveness of mass appraisal of properties.