Valuation of Residential Properties
- Using Time Trending
Residential properties, by law, must be valued solely by the market approach, using comparable verified sales from the study period July
1, 2004 through June 30, 2006 to determine value for the 2007 reappraisal.
Sales
can also be used from the prior five years if necessary. These same statutes require the adjustment of sales prices within this study period to the end of the data period – June 30,
2006. Sales of residential homes which took place between July 1, 2004, our
last statutory assessment date, and June 30,
2006 were analyzed to establish the residential time trend adjustments.
Since the law requires that sales prices be adjusted for time to the June 30,
2006 appraisal date, it’s as if all homes that sold in our study period were sold on June 30,
2006, and the time adjusted sales prices reflect market conditions on that date.
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Time Trend Adjustments are applied using this formula:
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Number of Months from Date of Sale to June 2006
= Appreciation Factor
x Original Sale Price
= Adjusted Sale Price
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Example for Home Sold January 1, 2006 for $300,000: |
6 (six months from sale date to June 2006)
1.021 (six month trend % for City of
Boulder)
x 300,000 (Original Sales Price)
1.021 X $300,000 = $306,300 Sale Price as of June 30, 2006
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Go to trend percentages for different areas |
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