Monday, April 13, 2015

How would Homeowners relate to over and under assessment, spatially. Town Analyst Guides.

                                               (ONE Click on the Image to Enlarge)

As indicated in prior Blog posts, since the body of the Countywide Sales Ratio curve (meaning between the 25th and 75th Percentile) points to a ratio around .87, all Towns in this County must be valued close to this ratio so that the Assessment Roll becomes fair and equitable.

While one would expect to see all Blue and Green balloons (legends on top right) on the spatial chart above, many Red and Yellow ones - even side by side - exist, indicating the presence of some seemingly serious under and over-assessed parcels. This scenario is quite normal as - more often than not - similar properties in the same neighborhood do not necessarily sell for the same price, which, in turn, introduces (visual) conflicts amongst individual ratios.

That is why Town-wise statistical summaries are always better front-line indicators. Of course, if an arms-length subject sale significantly deviates from its Town's, it may require a re-examination.    

Obviously, sales must be individually validated and the outliers removed from the sales universe. Better yet, those sales should then be modeled and the resulting model-defined outliers removed as well, thus paving the way for a more scientific universe of ratio-eligible sales.

This analysis is extracted from Homequant's "Town Analyst" portal. Although this analysis is currently live for one County only (Seminole, FL - on our homepage), we will soon introduce it for all of the markets we cover.

Meanwhile, please visit the Town Analyst site. It's completely free and requires no registration whatsoever.

http://www.townanalyst.com/

Other Related Post 
How Homeowners may know if their Town is Over-assessed. Town Analyst Explains.  
http://homequant.blogspot.com/2015/04/how-homeowners-may-know-if-their-town.html 

Disclaimer: This analysis is strictly illustrative. Any commercial or legal use of it is totally prohibited. Always consult a Tax Attorney on statutory requirements.    

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