What does the Sales Ratio compare?

The Sales Ratio specifically compares the RMV (Real Market Value) as determined from the certified assessment roll to the selling price of properties. This comparison is vital for understanding how accurately properties are appraised in relation to what they sell for on the open market.

By examining the relationship between RMV and actual selling prices, appraisers can assess whether properties are being overvalued or undervalued. This measurement helps in ensuring fair property assessments and can influence future appraisals and tax assessments. Additionally, the sales ratio is crucial for market studies, allowing appraisers and assessors to gauge overall market health and make adjustments to property valuations as necessary.

Understanding this concept aids in ensuring that property assessments align closely with market realities, which is essential for both property taxation and equitable property valuation practices.