What observation can be made if the Coefficient of Dispersion (COD) is outside acceptable ranges?

The Coefficient of Dispersion (COD) is a statistical measure that indicates the level of uniformity in property valuations or assessments. When the COD is outside the acceptable ranges, it suggests that there is significant variation in the way properties are valued in a given area. This inconsistency can arise due to a variety of factors, such as subjective assessment practices, differing levels of market knowledge among appraisers, or differences in property features that are not being adequately captured.

A COD that exceeds acceptable levels indicates that some properties are being overvalued while others are undervalued, reflecting a lack of uniformity in the valuation process. This inconsistency undermines the reliability of the appraisal system and can lead to significant discrepancies in property taxes, sales prices, and market perceptions. Therefore, the observation that there is a lack of uniformity in valuations is accurate when the COD is outside acceptable ranges, highlighting the need for improved appraisal methodologies or additional training for appraisers to ensure that valuations are more consistent and equitable.