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Statistical Revaluation Project

Statistical Revaluation Project. Town of Cumberland, RI Effective 12/31/2007. Certified Revaluation Company. Incorporated in 1998 Since that time we have performed 25 successful Revaluation Projects in RI. All of our clients are repeat customers

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Statistical Revaluation Project

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  1. Statistical Revaluation Project Town of Cumberland, RI Effective 12/31/2007

  2. Certified Revaluation Company • Incorporated in 1998 • Since that time we have performed 25 successful Revaluation Projects in RI. • All of our clients are repeat customers • This is our 3rd Revaluation project for the Town of Cumberland. • This illustrates our ability to get the job done accurately and on time.

  3. The Statistical Revaluation Process includes: • Physical Inspection of recent sales • Physical Inspection of parcels with open Building Permits • Rebuilding of Cost, Market, and Income pricing tables (Market Models) • Application of Market Models to each property in Town. • Review of resulting valuations • Perform Logical Edits

  4. Project Timeframe • Preliminary Market Analysis – October 31, 2007 • Completion of Field Inspections – Jan. 31, 2008 • Preliminary Values to Assessor – Jan. 31, 2008 • Mail Valuation Notices - February 29, 2008 • Informal Hearings – March 31, 2008 • Project Completion – April 1, 2008

  5. Market ConditionsMedian Sales Prices

  6. Market ConditionsNumber of Sales

  7. Market ConditionsDays on Market

  8. Our Sales Analysis • Will be based on 2007 Sales • Weighted for 4th quarter sales • Not based on percentage increase or decrease • Units of comparison developed from market • Rate per square foot • Rate per unit • Rate per acre

  9. Income Analysis • For commercial properties ONLY • Income & Expense forms mailed to income producing properties only. • Confidential • Voluntary compliance in RI. • Considered only when sufficient data is available • No business income considered – Real Estate Only

  10. Informal Hearings • Data hosted on our website for property owners to view prior to meeting. • Property Owner is asked to fill out a brief form • We will listen and consider property owner’s concerns • We will document the issues raised • We will perform additional research • We will look for pattern of complaints • We will make Corrections when needed

  11. Valuation Process • Units of comparison are developed from the local real estate market (Model Development) • Models are tested against recent valid sales • Results must conform to Industry Standards • Mainly developed by the IAAO (International Association of Assessing Officers)

  12. Model Example • Step 1 • Living Area x Rate per square foot • Adjustment for house style • Adjustment for size • Adjustment for number of stories • Adjustment for exterior wall type • Adjustment for cathedral areas

  13. Model Example • Step 2 • Basement adjustment for partial or no basement • Adjust for finished basement (if any) • Finished basement adjustment dependant on quality • Adjust for storage or expansion attic (if any)

  14. Model Example • Step 3 • Adjust for heating type • Adjust for central air conditioning (if any) • Step 4 • Adjust for number of bathrooms • Adjust for additional plumbing fixtures • Wet Bar • In-law Kitchen, etc…

  15. Model Example • Sep 5 • Adjust for Non Living Area Sections • Garages • Porches • Decks • Any other section of a house that is not living space

  16. Model Example • Step 6 - Adjust for building features • Basement garages • Fireplaces • Unfinished living area • Unheated area • Non cooled area (Only applies to central A/C) • Adjustments may be positive or negative

  17. Model Example • Step 7 • Apply Desirability Index • Quality of Construction • Market desirability • Functionality of layout / design • Conformance with surrounding properties • Curb appeal

  18. Model Example • Step 8 • Apply Depreciation to reflect • Age • Condition • Wear & Tear • Functional issues (Example – Structural Problems) • Economic Issues (Negative impact from adjacent property)

  19. Model Example • Step 9 • Land Valuation • Units of measure form market • Home site • Flat rate based on location • Adjustment applied when undersized • Additional buffer land • Acre pricing • No development potential reflected

  20. Model Example • Step 10 • Value Site Improvements • Detached garages • In ground Pools • Sheds • Barns & other miscellaneous structures • Value is based on quality, size and age.

  21. After value generation logical edits are performed to identify potential errors. Examples: Percentage Increase Percentage Decrease List of new parcels List of deleted parcels Vacant parcels with improvement values Changes in property Classification Logical Edits

  22. Important Points • Tax Revaluations do not raise additional revenue for the municipality • New Tax Levy Cap in RI predetermines amount of revenue that can be raised from taxation. • Main goal of the revaluation project is to equitably distribute the tax burden.

  23. Thank You Questions?

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