Agenda - 12-1-14 Reg. Meeting - Laserfiche WebLink

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041 amount of equity is needed and such properties usually require more - than - typical repairs — often even unforeseen —and are generally not even transferred via a General Warranty Deed. Due to these reasons, the market for foreclosures is dominated by investors looking to make a return. Approximately 31,400 parcels are assessed by the Division. While a private fee appraiser is concerned with valuing one property at a time, staff appraisers in the Division value properties within an entire neighborhood or market at once. Performing assessments on such a large number of parcels requires mass appraisal techniques and statistical modeling. During a countywide revaluation, staff appraisers develop market - supported land rates, depreciation tables and other variables that have an effect on value. After completing the analysis, the appraiser applies these factors uniformly throughout the neighborhood to value all properties. A measurement of assessment quality is the quotient of assessed value /sale price (hereinafter "Ratio "). A Ratio is the relationship between two numbers, in this case between assessed value and sale price. It measures how accurately assessments represent current market values. This Ratio indicates the typical level of assessment. Because the marketplace is not perfect, there will always be properties that sell for more or less than what can be anticipated due to factors such as sales between people unfamiliar with the market or buyers willing to pay extra for a unique property, among other reasons. In mass appraisal and assessment ratio studies, we are not only concerned with the level of assessment, as indicated by the assessment ratio, but also the degree of spread or variation from the typical or median ratio. One such statistical measurement of variation is called the coefficient of dispersion (COD). A lower COD indicates more uniform assessments and less variation. The remainder of the written aspect of this report provides a more detailed explanation of the statistical terms as applied to assessment administration and quality control, and it explains the International Association of Assessing Officers' (IAAO) Standard on Performance for ratio studies. RATIO STATISTICS The purpose of this ratio study is to test the current quality of the assessment product produced in the County's last revaluation, and to illuminate how market changes are influencing the impending countywide revaluation. We use ratio studies as a performance gauge that includes several measures of central tendency. A measure of central tendency indicates the typical level of assessments to actual selling prices of real estate. These may be the mean, weighted average or median assessment ratio. Mean assessment ratio is simply the average of all ratios in the sample, weighted mean is the result of dividing the total of all assessments by the total of all sale prices in the sample and median assessment ratio is the midpoint ratio of a data set once arrayed in either descending or ascending order. In addition to the general level of assessments, we also are concerned with the relative spread or variation that individual ratios depart from the typical ratio. This is measured by the coefficient of dispersion (COD). Acceptable levels for COD depend upon the type of properties being reviewed. According to the IAAO, a COD should typically be less than 20 %.