Chapter 9 Data Collection- Students, the most useful part of this chapter is property tax calculations.

Data Collection Sources of general data Sources of specific data Public records Listings and offerings Multiple listing services (MLS) National property databases Published news Market participants Sources of competitive supply and demand data Chapter 9

Data Organization Units of comparison Price per apartment unit = price of the apartment complex divided by the number of units. If collecting competitive rents, use rent for each type of unit: $/month for a 1 bedroom unit , etc. Price per square foot of gross living area – useful for all types of residential units. Price per acre- more useful for farmland than urban land. In an urban context, price per building lot (a residential unit is allowed by zoning) is more relevant than per acre. Price per front foot on the lake Chapter 9

Property Tax Calculation: the number of “mills” is multiplied by assessed property value (AV) to get property tax in the year the mills were set by the town One mill = .1% or .001, so 10 mills = 1% (.01) of AV If AV = $150K and the tax rate is 30 mills, the property tax is $4,500 = 150,000*30*.001. The assessment ratio is AV/Property Value. In CT, the ratio is .7, but this holds only in the year of general revaluation, meaning the year all property is revalued for tax purposes. This happens roughly every 5 years in CT. If you know the ratio is currently at say .6 (because values went up) and you know the property value (V) and mill rate, then you calculate Tax= V*ratio*mills*.001. Chapter 9

Review exercises are strongly recommended Chapter 9