What is the acceptable median ratio range for a sales ratio study?

The acceptable median ratio range for a sales ratio study is typically established within a framework that reflects accurate assessment practices for property values. The selection of the range from .36 to .44 signifies a balance that allows appraisers to evaluate property sales' ratio against their assessed values effectively.

When appraisers conduct sales ratio studies, they are primarily looking for a measurable understanding of how assessment values correspond with actual sale prices. A range of .36 to .44 indicates that the median of assessed values should be consistent with around 36%-44% of the sale price, demonstrating a well-aligned approach to market values.

This range is recognized as a standard benchmark for many jurisdictions aiming for fair and equitable assessments. It allows for recognition of variations in property characteristics and market conditions. When the median ratio falls within this range, it suggests that assessments are generally reflective of the market values, fostering credibility and adherence to standards in the appraisal process.