NAC361.1188. Land: Adjustments for purposes of sales comparison approach.

     1. For the purposes of carrying out the provisions of NAC 361.11795 or 361.118:

     (a) The amount of the adjustments to comparable sales or to the base lot or comparative unit value must be determined using paired sales analysis, sales-resales analysis, regression analysis or another model calibration technique in accordance with the provisions of chapters 6 and 15 of Property Appraisal and Assessment Administration, as adopted by reference in NAC 361.1177.

     (b) If multiple types of adjustments to comparable sales or to the base lot or comparative unit value are necessary, those adjustments must be made as follows:

          (1) Any transactional adjustments must be made to the total sale price in the following sequential order:

               (I) Adjustments for the real property rights conveyed.

               (II) Adjustments for the financing terms.

               (III) Adjustments for the conditions of sale, including any sales concessions.

               (IV) Adjustments for expenditures made immediately after the purchase.

               (V) Adjustments for market conditions.

          (2) After making all the applicable transactional adjustments described in subparagraph (1), units of comparison must be calculated based upon the adjusted sale price, and then adjusted for differences in location and any physical, economic and other characteristics which affect value.

     2. For the purposes of this section:

     (a) “Adjustments for market conditions” means adjustments to reflect increases or decreases in property values in the market for property over time.

     (b) Adjustments for market conditions must not be made unless property values for the same general area and classification of property have increased or decreased since the transaction dates. To make such an adjustment, the difference in sales prices of the same or similar properties over time must be measured to extract a rate of adjustment to apply to comparable sales to improve comparability.

     (Added to NAC by Tax Comm’n by R039-10, 8-13-2010, eff. 7-1-2012)