What is a sales study?

A sales study is a compilation of properties that have recently sold, which is essential for understanding market trends and establishing property values in a given area. This information is critical for assessors as it allows them to analyze recent sales data, identify patterns, and make informed decisions about property assessments.

Sales studies typically include details such as sale prices, locations, property characteristics, and dates of sale. By examining this data, assessors can derive insights regarding how similar properties are valued in the current market, which is particularly useful for recalibrating assessments to reflect fair market value.

In contrast, reports on property taxes focus on the amount of taxes assessed and collected rather than sales data, analyses of property value depreciation might examine the decline in value over time, and records of assessed values over time document changes in assessed valuations but do not specifically relate to sales activity. Hence, the focus of a sales study on recently sold properties makes it crucial for the appraisal and assessment process.