Macro Comparative Sales Approach

From Our Property Taxes

Jump to: navigation, search

The “Macro” Comparative Sales Approach can simplify the comparative sales approach by creating a ratio.

  • The sales ratio: Compare the actual selling prices of comparable properties versus the assessor’s opinion of value. A ratio is created which is:

Sales Ratio = Assessor Value ÷ True Market Value


  • Example: If a group of homes very similar to yours sell for $100,000, but the assessor consistently values them at $50,000, then the assessor is valuing the properties at 50% of those homes’ true value.

The assessor must value alike homes at the same sales ratio. Therefore if your home is valued at 70% of its true value, and other homes are valued at 50% of true value, then you have been over-assessed.





Whos here now:   Members 0   Guests 0   Bots & Crawlers 1
 
Retrieved from "http://ourpropertytaxes.com/Macro_Comparative_Sales_Approach"