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CABARRUS COUNTY 2012 APPRAISAL MANUAL O. The transaction includes the conveyance of personal property and the value of such is not specified separate from the real property value in the deed. P. The transaction is the result of a forced sale or auction Q. Transaction made by the use of a Contract for Deed, the agreement for which is executed and sale actually made prior to the study. R. The transaction involves the trade or exchange of real property. S. The transaction is for real property, which cannot be clearly identified on the county tax records. X. Other (An explanation must be provided when this code is used.) STEP 3 QUALIFICATION OF SALES BY DEED: The sales that remain unqualified may be qualified directly by the appraiser through conversations with the buyer or seller by phone, email or in person. If enough qualified sales exist to support the validity of a sale that remains unqualified, the appraiser may qualify the sale from the deed stamps for use in our statistical reports. If this is done the instrument type should be changed to DS it indicate that the sale was qualified by deed stamps. By completing this 3 step process the majority of the sales in the county can be effectively qualified. EVALUATING SALES The Sales Questionnaire and Sales Qualification Forms should be reviewed by the appraiser most familiar with the type of property or area being researched; i.e. income producing properties by the commercial /industrial appraiser and residential properties by the residential appraisers. Changes in sales prices can and should be made to compensate for personal property included in the sales. Having done this, a sale can be treated as qualified and used as a guide for establishing values for similar properties. The qualification process enables the property appraiser to gather the information necessary to adjust sales prices so they will reflect "fair market" sales. During the investigation of sales, other factors may come to light indicating that an adjustment is necessary to the sales price for what appears to be an otherwise qualified sale. These include market and economic factors. For example, if a property has to remain on the market for an excessive period of time prior to selling, an adjustment may be appropriate. The property appraiser can find himself in a most advantageous position in determining the type of adjustments required because of his familiarity with the local market conditions. Adjustments SHOULD be made for any VALID reason in order to supply qualified comparables for valuing similar properties. It is most important to remember that the sales qualification forms should be PROPERLY filled out and filed for FUTURE REFERENCE. BENCHMARK SALES The necessity of determining "market value" for all properties complicates the task of appraising certain types of property uses with few or no "qualified" sales. In these instances PASCO is designed to utilize BENCHMARK (surrogate) SALES. The term benchmark refers to properties which have been appraised using conventional fee appraisal techniques. When sufficient sales data is unavailable, fee appraisers have relied on the cost and income approaches to value for indications of market value. For the property appraiser faced with the wide variety of property types, the utilization of the income and cost techniques can provide supportable evidence for appraisal purposes when no "qualified" sales are available which would be applicable. When faced with a valuation problem dealing with a property type for which there are no qualified sales, the appraiser's first Cabarrus County — 2012 Revaluation SALES UTILIZATION & 2-5 FAIR MARKET VALUE 8/9/11 Attachment number 4 G -3 Page 285