Every two years, in odd numbered years, we revalue all real property in the County using an appraisal date set by state law -this is called a reappraisal. Next year, 2009, is a reappraisal year and properties will be valued as of the appraisal date of June 30, 2008. Colorado law requires the county assessor to value residential property at full market value, using only the sales comparison approach. There are many things that have to take place in the assessor's office to make a reappraisal successful. Information that is reliable and relevant has to be gathered, such as property characteristics and sales data. That information is then analyzed to understand market trends and influences. As a part of the "mass appraisal" process we next create mathematical models based on the contribution made to sale prices by various characteristics such as location, size and age, just to name a few. After that, the value of each property in the county is calculated based on those models. Values are then reviewed and tested to make sure they are as fair and equitable as possible before the final Notices of Valuation are mailed on May 1st.

Property sales are the backbone of a reappraisal, and making sure those sales are confirmed and verified transactions can make the difference between accurate values and either under or over-valued property. It is the responsibility of the assessor to make sure that the sales information used in analysis is correct and complete, and for the 2009 Reappraisal the Douglas County Assessor's Office is reviewing approximately 18,000 sales. This process of review is called sales confirmation, and may include the evaluation of the sale price, type of transaction, and property characteristics.

Usually when a property is sold, the amount of consideration, or selling price, is listed on the deed. The market value of a property should be similar to the sale price; however there are a variety of situations when the market value will differ from the reported price. For instance, a sale price may include non-real estate items such as personal property, crops, machinery, closing costs, points, or rebates paid by the seller. When these items are disclosed, adjustments from the purchase price are made before they are used for analysis. Another example of when a sale price differs from market value is when "distressed" properties are sold or transferred. Sales to avoid foreclosure, re-sales of repossessed property, sales involving divorces, bankruptcies, and some estates generally do not meet the definition of market sales and are not used for analysis.

At a closing, along with the deed, there are many other documents that have to be signed or filled out; one of which is a Real Property Transfer Declaration. This document provides valuable information on the circumstances of the sale including property type, financial arrangements, ownership interest acquired, any personal property included in the sale price, and other information to assist the assessor. As part of our Sales Confirmation Process, all residential Transfer Declarations filed with the county are manually reviewed. While processing the Transfer Declaration, the assessor may uncover incomplete or missing information that necessitates contact with the buyer, realtor, or preparer of the document. The assessor may request additional information or an inspection to complete the confirmation, and to review and verify property characteristics that may affect the purchase price.

If sales that should either be rejected or adjusted are taken at face value and used for valuation, then there is a possibility that property values will be incorrect. The Douglas County Assessor's Office takes great pride in its Sales Confirmation Program, and continually seeks to improve their process with tools and technology.