NAC361.11795. Land: Sales comparison approach using mass appraisal technique.

A county assessor shall apply the sales comparison approach using a mass appraisal technique as follows:

     1. The county assessor shall stratify the properties being appraised into groups based upon location, zoning, use or other relevant characteristics. Sufficient strata must be established to ensure that all types of property subject to appraisal are appropriately represented.

     2. After stratification pursuant to subsection 1, the county assessor shall:

     (a) For each stratum:

          (1) Analyze sales of comparable land; and

          (2) Make adjustments to the sales prices as necessary to eliminate any nonrealty components of value and any differences resulting from the real property rights conveyed, financing terms, conditions of sale, market conditions, location, physical characteristics, size, zoning, use, governmental restrictions, sales concessions and expenditures made after sales that influence sales prices; and

     (b) Determine an appropriate base lot or comparative unit value to be used as a benchmark for valuing the properties in each stratum and, if appropriate, market adjustments to the base lot or comparative unit value for differences in physical characteristics, size, zoning, use, view, governmental restrictions and other attributes that affect value. The adjustments:

          (1) Must be mathematical changes made to the base lot or comparative unit values to account for differences in the elements of comparison between the base lot or comparative unit and the subject property;

          (2) May be made only to the base lot or comparative unit value in order to reflect the value of the subject property; and

          (3) May be made by adding or subtracting lump-sum dollar values, or by applying positive or negative percentage differentials, to the base lot or comparative unit values.

     (Added to NAC by Tax Comm’n by R166-07, eff. 6-17-2008; A by R039-10, 8-13-2010, eff. 7-1-2012)