What is the main purpose of an assessment ratio study?

The primary purpose of an assessment ratio study is to measure the level of assessment uniformity. This type of study compares assessed property values to actual sale prices to determine if the assessments are equitable across similar properties. Uniformity in assessment is crucial for ensuring fairness in property taxation, as it helps identify disparities that may be present in the assessment process.

By analyzing the ratios of assessed values to sale prices, the study provides insights into how consistently properties are valued, highlighting areas where assessment practices may need improvement. The results can inform policymakers and assessors about the effectiveness of current assessment methods and help maintain fair and equitable taxation.

In contrast, while determining property market trends, finding average sale prices, and assessing property condition are important aspects of real estate analysis, they do not specifically address the goal of measuring assessment uniformity, which is essential for proper valuation practices and tax equity.