cabarrus county board of commissioners regular meeting november ...

October 17, 2011 (Regular Meeting)PageO. The transaction includes the conveyance of personal property, and thevalue of such is not specified separate from the real property value in thedeed.P. The transaction is the result of a forced sale or auction.Q. Transaction made by the use of a Contract for Deed, the agreement forwhich is executed and sale actually made prior to the study.R. The transaction involves the trade or exchange of real property.S. The transaction is for real property, which cannot be clearly identifiedon the county tax records.X. Other (An explanation must be provided when this code is used.)STEP 3 QUALIFICATION OF SALES BY DEED:The sales that remain unqualified may be qualified directly by the appraiserthrough conversations with the buyer or seller by phone, email or in person.If enough qualified sales exist to support the validity of a sale thatremains unqualified, the appraiser may qualify the sale from the deed stampsfor use in our statistical reports. If this is done the instrument typeshould be changed to DS it indicate that the sale wasqualified by deedstamps. By completing this 3 step process the majority of the sales in thecounty can be effectively qualified.EVALUATING SALESThe Sales Questionnaire and Sales Qualification Forms shouldbe reviewed bythe appraiser most familiar with the typeofproperty or area beingresearched; i.e. income producing properties rtiesbythe commercial/industrialappraiser and residential properties by the residential appraisers.Changes in sales prices can and should be made tocompensate for personalproperty included in the sales. Having done this, a sale can be treated asqualified and used as a guide for establishing values for similar properties.The qualification process enablestheproperty appraiser to gather theinformation necessary to adjust sales prices so they will reflect "fairmarket" sales.During the investigation of sales, otherfactors may come to light indicatingthat an adjustment t is necessary to thesales price for what appears to be anotherwise qualified sale.These include market and economic factors. Forexample, if a property has to remain on the market for an excessive period oftime prior to selling, an adjustment may be appropriate. The propertyappraiser can find himselfin a most advantageous position in determining thetype of adjustments requiredbecause of his familiarity with the local marketconditions. Adjustments SHOULD be made for any VALID reason in order tosupply qualified comparables for valuing similar properties.It is most important to remember that the sales qualification forms should bePROPERLY filled out and filed for FUTURE REFERENCE.BENCHMARK SALESDRAFTThe necessity of determining "market value" for all properties complicatesthe task of appraising certain types of property uses with few or no"qualified" sales. In these instances PASCO is designed to utilize BENCHMARK(surrogate) SALES.The term benchmark refers to properties which have been appraised usingconventional fee appraisal techniques. When sufficient sales data isunavailable, fee appraisers have relied on the cost and income approaches tovalue for indications of market value. For the property appraiser faced withthe wide variety of property types, the utilization of the income and costtechniques can provide supportable evidence for appraisal purposes when no"qualified" sales are available which would be applicable.When faced with a valuation problem dealing with a property type for whichthere are no qualified sales, the appraiser's first step is to choose a fewparcels representative of the particular type or, if there is just oneproperty, the subject can be used. The next step, collecting pertinent dataabout the properties, is similar to that of the fee appraiser. Depending onavailable information, either the cost approach or income approach may beA-1Page 44