From the Assessor’s Desk
JAN. 1, 2015 – JUNE 30, 2016
The following information is to help you understand how your property is valued using mass appraisal.
In September the Assessor’s office began the 2017 reappraisal process. Values are determined by comparing sales of like properties in like subdivisions, neighborhoods, and the surrounding areas.
Pursuant to the Colorado Revised Statute [39-1-104 (10.2)] we are required to gather sales within 18 month period ending on June 30th of the year prior to the appraisal year. If qualified and confirmed sales cannot be collected from that 18 month period, the data collection period can extend to a maximum of 5 years going back 6 month increments at a time.
The Adams County Assessor’s Office uses a 24 month period for our time trending analysis, July 1, 2014 to June 30, 2016.
The time tends to level out better if we start and end our analysis in the peak of the sales activity of each year.
To achieve uniform, fair and equitable values, qualified and confirmed sales must be time trended to June 30, 2016, using a method called Sales Ratio Trend Analysis. This method uses the assessor’s appraised actual values from the last reappraisal (June 30, 2014), and compares it against recent sales data that has occurred during the newer period of July 31, 2014 through June 30, 2016.
On July 1, 2014 a house’s appraised value was $150,000 then sold two years later for $205,000.
The ratio would be 1.36 ($205,000/$150,000).
If the resulting ratio is greater than 1, it indicates that the property was sold for more than our evaluation.
If the resulting ratio is less than 1, it was sold for less than our evaluation.
Therefore, this 1.36 ratio of the subject property shows 36% increase from July 2014 to June 2016.
All sales that have occurred in the county are compared using this sales ratio comparison method. The time adjustment is applied to the original sales price bringing it current to June 30, 2016.