Evidence to Support Your Opinion of Your Property’s Value
In most residential appeals, the most reliable type of evidence to support your opinion
of “fair market value” is the sale of properties similar to yours.
There are three basic methods used by appraisers to find the value of property: Comparable Sales of
similar property approach; Replacement Cost less depreciation approach; and Income Approach. In
most residential appeals, the most reliable type of evidence to support your opinion of “fair market
value” is the sale of properties similar to yours. These are called “comparable properties.”
Before you begin to gather evidence about comparable properties, you should gather information about
your own property. Determine the age, building size(s), lot size, and so forth for your property first, and
then compare that information with the assessor’s information for your property. You can obtain
information about your property by contacting the assessor’s office.
The following information explains how to judge whether a sold property is comparable to your
property.
C
OMPARABLE
S
ALES
Comparable sales dated more than 90 days after the valuation date (also referred to
as the lien date) cannot be admitted into evidence.
“Comparable sales” are sales of other properties that are similar to yours. Three different standards
are used to judge the comparability of the properties you submit as evidence.
•
Are the sales arm’s-length open market transactions? “
Arm’s-length open market transaction” refers to conditions surrounding the sale. Was the property
exposed for sale on the open market? Was the property available for sale to anyone? Did the seller
have to sell quickly? Was the property listed for sale with a Realtor? Did the buyer and seller know
each other?
For example, a house sold between relatives may sell for less than if it were sold to someone the
seller does not know. In that situation, a sale may not be an “arm’s-length open market transaction.”
•
Are the properties physically similar to your property?
Elements used to measure the physical similarity include, but are not limited to, the following:
- Distance from your property
- Zoning
- The number of bedrooms and bathrooms
- Year built
- Size of improvement, such as a house — in square feet
- Lot size and other attributes — such as a view
- Miscellaneous improvements — pools, patios, and so forth
- Quality of construction
- Property condition — excellent, good, fair, or poor
•
Are the comparable sales relevant for the valuation date of the property you are appealing?
By law, an appeals board may only consider comparable sales that have occurred no later than 90
days after the valuation date of your property that you are appealing (the valuation date is explained
below). Comparable sales that occur well before or up to 90 days after the valuation date are
acceptable, but sales closer to the valuation date will most likely be viewed by an appeals board as
more reliable.
