REAPPRAISAL IN TODAY’S MARKET Where do the values come from?

REAPPRAISAL IN TODAY’SMARKET

Where do the values come from?

Some may think……

But no…. The Real Key is ……..

DATA, DATA, DATA!!!!

MARKET CHALLENGE IN TODAY’S ECONOMY

• FINANCIALLY DISTRESSED SALES– NOT CONSIDERED QUALIFIED SALES

HOW DAMAGED ARE THE PROPERTIES LOWERS THE QUALIFIED SALES

– WHEN A “SUBSTANTIAL MAJORITY OF THE MARKET” IS DISTRESSED SALESUSE LISTINGS “BENCHMARKS”USE SIMILAR SUBDIVISIONS

MARKET DATA1. LAND VALUE2. STRUCTURE VALUE

SOURCES:

SALES LETTER

FRONT BACK

LoopNet

Cabarrus County Economic Development

COST DATA

Marshall & Swift Cost Estimates

INCOME DATA

• LOOPNET• INCOME/EXPENSE LETTERS TO PROPERTY

OWNERS• PROPERTY MANAGEMENT COMPANIES• BROKERS

Income / Expense Letters

DATA, DATA, DATA MARKET

COST INCOME

SCHEDULE OF VALUES

Cabarrus County

2012 Revaluation

CABARRUS COUNTY 2012 APPRAISAL FACTORS

IMPROVEMENTS LAND•BASE RATE BASE RATE•MARKET FACTOR LOT VALUE (15% VS 25%)•EFFECTIVE AGE SIZE FACTORS•RECLASSIFY TYPES PUV-

SCHEDULE OF VALUESIMPROVEMENTS BASE RATE

UseBase Rate 2008

Base Rate 2012

M & S 2012 DESCRIPTION

1 $71 $68 $78 Single Family Residential

01E $130 $120 $170 Single Family Exceptional

10 $64 $68 $74 Commercial

40 $56 $56 $64 Industrial

MARKET AND QUALITY FACTORS

2008 2012

SCHEDULE OF VALUESLAND

PUV- INCREASE

PUV 2008

PUV 2012

Final Results

Sales Ratio

• Homes built in 2011 and sold in 2011Number of Sales 293

Median Ratio 98.136%COD 4.129%

• All Parcels sold in 2011Number of Sales 1,129Median Ratio 97.667%COD 3.492%

County Wide Value Change