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 293Median 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