How is value derived from comparable sales in property assessments?

The value derived from comparable sales in property assessments is obtained by adjusting the prices of similar properties to account for differences. This method is essential because even properties that appear similar can have significant variations that affect their market value, such as location, condition, size, and features.

Adjustments are made to enhance the accuracy of the comparisons, ensuring a more precise estimate of a subject property's value. For instance, if a comparable property has an additional bathroom or is located in a more desirable neighborhood, adjustments will be applied to reflect how these differences impact value. This tailored approach allows assessors to arrive at a market value that considers the nuances of each property rather than relying on simplistic calculations like averages or medians, which may overlook these critical distinctions.

By employing this method, assessors can provide a fair and comprehensive valuation, which is pivotal in maintaining equity in property assessments and taxation.