Macro Comparative Sales Approach
From Our Property Taxes
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.
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