Wednesday, November 14, 2018

Most Homeowners do not Understand the Clear and Present Impact 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 property 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 countywide assessment inequity. While West (blue) and East (green) are fairly assessed (between 25th and 75th Percentile), Southeast and North (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 AVMs are developed mutually exclusively at the sub-market level, without any roll-wise equalization at the back-end). 

FYI -- AVM Technicians 

In an event like this, a Benchmark AVM is in order, ironing out such inequity from the tax roll. Click on the link below to understand what our proprietary Benchmark AVM does...

I picked the above spatial graphic from 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 registrations whatsoever. Please use the site/system that works best for you.

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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