Agenda - 10-17-16 Reg. Meeting - Laserfiche WebLink

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there is an increased risk, there also should be an increased expected return on investment. An atypical 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 all properties within Lee County at once which is known as "Mass Appraisal". Performing assessments on such a large number of parcels requires mass appraisal techniques and statistical modeling. During a countywide reappraisal, staff appraisers develop current cost and depreciation tables, study market trends, develop market - supported land rates, gather income information and other variables that have an effect on value. After completing the analysis using all three approaches, (Cost, Sales, and Income) the appraiser applies these factors uniformly throughout the county 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, foreclosures, sales between relatives, as well as various other reasons. These are the sales we "kick out" and are not included in our sales ratio. 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 reappraisal, and to illuminate how market changes are influencing the impending countywide reappraisal. 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 or median assessment ratio. Mean assessment ratio is simply the average of all ratios 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