Tuesday, October 10, 2017

Most Homeowners Do Not Understand the Prevalence of Assessment Inequity

(Click on the image to enlarge)

Sales Ratio (County Market Value to Adjusted Sale Price) is a common method to determine assessment equity, meaning whether the published tax roll is fair and equitable. When presented spatially, the ratio chart aids visualization of the collective data, thus making the incidence of inequity, if any, stand out. 

The above sales ratio distribution graphic demonstrates some serious (countywide) assessment inequity. While North (blue) and South (green) are fairly assessed (between 25th and 75th Percentile), East and West (red and yellow) show some significant under-and-over assessments (below 25th and above 75th Percentile). 

This anomaly often stems from the poorly-developed Automated Valuation Models (when separate AVMs are developed at the sub-market level, without any roll-wise equalization at the back-end). In an event like this, a Benchmark AVM is in order, ironing out such inequity from the tax roll.

I picked the above spatial graphic from TownAnalyst.com as I own and operate it, to avoid having to deal with any copyright issues. My TownAnalyst site is totally free (no strings) and requires no login or registration whatsoever...

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