Qualified Sales
Improved Residential Qualified Sales List
Commercial Qualified Sales List
Vacant
Land Qualified Sales List
Qualified Sales are used by the Assessor to set values, building
depreciation, market conditions, sales ratio studies, and the analysis and
evaluation process.
Qualified Sales are sales that are ‘arm’s-length’ transactions, which are
sales between buyers and sellers acting independently of one another and are
not related in some manner. Parties can be related by blood or marriage, but
they can also be related through business relationships, such as
partnerships, corporations, or other agency agreements. Related parties can
include officers of a corporation who transact business with the corporation
or its subsidiaries.
Qualified Sales are confirmed and verified through various processes,
including Real Property Transfer Declaration forms, sales confirmation
questionnaires, interviews, and inspections.
Non-qualified Sales are sales that have been eliminated from consideration
as comparable property sales because they were one or more of the following:
1.
Sales outside of the statutory 18-month period (note that sales older than
18 months can be considered up to 60
months, if necessary)
2.
Non-arm’s length transactions
3.
Contracts for sale, if they have not been completed
4.
No documentary fee was paid
5.
Deeds in Lieu of Foreclosure
Speculative sales usually result from anticipation of planned or proposed
economic or political events that are expected to result in future gains or
profits. When speculation fails to materialize, the sales may be
disqualified if they meet the following four conditions:
1.
The anticipated event must be considered a real possibility
2.
There must be documented increases in sales activity and prices
3.
The anticipated event fails to materialize
4.
The speculative sales must be confirmed as having been non-arm’s-length
sales (examples: contingency
clauses with down payment forfeiture, owner financing with large down payment, typical lenders would not
normally
finance, cash transactions where financing is typical and
prices paid are inordinately high)