Property Valuation
Indiana's requirement that assessments reflect market value is measured by the State Board of Tax Commissioners through:
ARandom property inspections
BSales ratio studies comparing assessed values to actual sales prices across sample properties✓ Correct
CReview of broker price opinions
DAnnual surveys of property owners
Explanation
Sales ratio studies compare assessed values to actual market sales prices to measure assessment level and uniformity across Indiana counties, ensuring compliance with the requirement to assess at market value.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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