The Area Sales Analysis is used as a part of our valuation process. Residential property is valued using both a cost model and a sales comparison model. The basic concept of the sales comparison model is that the estimated market value of a property equals the sale price of a comparable property after adjustments for differences are made. For example, if Property X has a garage but the comparable has none, the value of the garage would be added to the comparable's sale price. The result would be evidence of what Property X's selling price might be.
Assessors use more than one comparable to determine values using the sales approach.
They also use more complex models that incorporate many more factors. Rather than considering properties one at a time, assessors use mass appraisal techniques and computer software to appraise many properties of the same general type. This listing represents one part of the total process to determine market value. The Department also uses the sales analysis as a quality control measure. For assessments, one measurement of quality is the ratio of the assessed value to the sales price.