Using Assessed Values in Property Valuations

This paper proposes an improved net rate analysis using the assessed land values to proxy market land values in real estate appraisals. Compared to the traditional sales comparison approach, the method has greatly simplified the comparison process and extended the potential pool of comparable sales. Simulations based on the theoretical and empirical data suggest that the method benefits much from the law of compensation of errors and the impact of measurement errors in assessor land values is small. The method could be applicable in a wide range of established areas where there are few vacant land sales.