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October 17, 2011 (Regular Meeting) Page 664 employed to give good value indications. Cost Benchmarks If the improvements under investigation are relatively new, local contractors can be consulted for estimates of the cost to replace. Also, the property appraiser can utilize such cost services as MARSHALL & SWIFT BUILDING COST SERVICE to give good cost estimates for a wide variety of building types. After a cost per square foot, unit and /or total building cost new has been estimated, it is necessary for the appraiser to review the property to determine depreciation in the case of less than new structures. After the appropriate amount of depreciation is calculated, it is subtracted from the replacement cost new. The resulting figure is the depreciated replacement cost new to which is added the market land value. With accurate figures, this value can be utilized and entered as a benchmark sale. Income Benchmarks Another useful method of deriving benchmark sales involves the income approach to value. PASCO makes available seven methods which are discussed in greater detail in a later chapter but for the purposes of benchmarking a few other comments are necessary. The basic income data regarding income and expenses is critical and care should be taken to verify information gathered. When this is done and entered into the system using one of the seven approaches, the resultant value can be entered in the sales portion of the appraisal card. The justification for the use of the income approach in the valuation process rests with the reason the income property is used. Income property is used to generate an income stream of revenues in the form of money. It is one of the basic economic building blocks and the property can be valued in terms of its ability to generate income. Income property is held, developed and sold for the income producing potential it possesses. USE OF SALES ANALYSIS REPORTS IN THE APPRAISAL PROCESS: Reports can be generated based on location, improvement type, model number, etc. The sales with extreme ratios can be subjected to the sales qualification procedure. The parameters for those to be analyzed can be set by the property appraiser (i.e. all ratios greater than 100 and less than 75, etc.) based on his requirements, available staff, etc. PASCO is designed so that the property appraiser does not have to manually research his own files for various property types but can receive a computer printed worksheet detailing only those parcels he wishes to research based on the parameters he has selected (location, age, improvement type, land use,...). During the Revaluation process sales ratio studies are normally performed by neighborhood using the sales that were recorded in the year preceding the effective date of the revaluation. It is the intent of Cabarrus County to appraise all neighborhoods within the performance standard of the Standard on Ratio Studies of the international Association of Assessing Officers (IAAO) as follows: Measure of Type of Property Central Tendency Single Family Residential Newer, more homogenous areas .90 - 1.10 older, heterogeneous areas .90 - 1.10 Rural residential .90 - 1.10 Income producing properties .90 - 1.10 Larger, urban jurisdictions .90 - 1.10 Smaller, rural jurisdictions .90 - 1.10 Vacant land .90 - 1.10 Other real property .90 - 1.10 Coefficient of Dispersion PRD* 10.0 or less .98 - 1.03 15.0 or less .98 - 1.03 20.0 or less .98 - 1.03 15.0 or less .98 - 1.03 20.0 or less .98 - 1.03 20.0 or less .98 - 1.03 Varies .98 - 1.03 *The standards for the PRD are not absolute when samples are small or wide variations in price exist. Chapter 3 Land Records Procedures Introduction All property within Cabarrus County shall be mapped as a parcel to include all necessary attributes. These attributes shall include at minimum: PIN number; Real Id (old parcel number) ; Deeded Acreage; Calculated Acreage; Tax Neighborhood Designation; Subdivision Name, Lot Number, and Plat Reference