Revaluation of Assessment Neighborhoods
Following sales analysis the real estate appraisers utilize the Proval® CAMA (Computer Assisted Mass Appraisal) to revalue assessment neighborhoods as necessary. The revaluation process begins with reassessment of the land, which is followed by reassessment of improvements. A variety of statistical measurements of the assessment sales ratios are considered to select the best reassessment proposal.
These measures include the quantity of sales, the range of sales prices, the median assessment sales ratio, as well as the coefficients of dispersion (COD), standard deviations and the price related differential (PRD) of the assessment sales ratios.
- Coefficient of Dispersion (COD) - a statistical measure of dispersion from the median.
- Median Assessment Sales Ratio - The middle assessment sales ratio when arrayed from low to high, or high to low
- Price Related Differential (PRD) - The mean divided by the weighted mean. PRDs above 103% suggest assessments are regressive, where more expensive homes in the sample are assessed at a lower rate and less expensive homes are assessed at a higher rate: PRDs below 98% suggest assessments are progressive with more expensive homes in the sample assessed at a higher rate and less expensive homes assessed at a lower rate.
- Quantity of Sales - The number of sales during the specified period in the particular assessment neighborhood.
- Range of Sales Prices - From the lowest to the highest sales price.
- Standard Deviation - A statistical measure of dispersion from the mean.
Commercial & Industrial Property Assessments
Changes in commercial and industrial property assessments also utilize income and expense data, and construction cost data. The request of income and expense data from owners of income-producing properties is authorized by the Code of Virginia § 58.1-3294.
During June, the Office of the Assessor of Real Estate makes a request of audited income and expense data from the previous year from commercial property owners. This information is used in the reassessment for the following January 1 valuations.
During Office Review and Board of Review appeals income and expense information from the year immediately preceding the January 1 valuation date is not considered, as audited information from that period was not available to the staff to establish the equalized assessment values. Consideration of such information for select properties during appeals would violate equalization.