Property Update FlowchartProperty Update FlowchartProperty Update FlowchartProperty Update Flowchart

Develop Work plan

Collect Required Physical Data

Public Relations Plan

Project Delivery

Informal Hearings

Field Review & Value Correlation

Analysis

Collect/Verify Specific Market Data

Quality Control Procedures

Sales & Improvement Data

Income & Expense Data

MarketCost

Income

Data Collection

Data Collection

Benefits of an UpdateBenefits of an UpdateBenefits of an UpdateBenefits of an Update

Corrects disproportionate taxationCorrects disproportionate taxation Adjusts value for market shiftsAdjusts value for market shifts Captures all new constructionCaptures all new construction Provides access to all information with Provides access to all information with

computerized property filescomputerized property files

*NH Department of Revenue *NH Department of Revenue AdministrationAdministrationConducts own ratio studies of sales to assessment and Conducts own ratio studies of sales to assessment and wants townswants towns

to be between 110% to 90% of Fair Market Value (Sale to to be between 110% to 90% of Fair Market Value (Sale to Assessment)Assessment)

Chester’s equalization for 2005 is 54% (Sale to assessment)Chester’s equalization for 2005 is 54% (Sale to assessment)

Corrects disproportionate taxationCorrects disproportionate taxation Adjusts value for market shiftsAdjusts value for market shifts Captures all new constructionCaptures all new construction Provides access to all information with Provides access to all information with

computerized property filescomputerized property files

*NH Department of Revenue *NH Department of Revenue AdministrationAdministrationConducts own ratio studies of sales to assessment and Conducts own ratio studies of sales to assessment and wants townswants towns

to be between 110% to 90% of Fair Market Value (Sale to to be between 110% to 90% of Fair Market Value (Sale to Assessment)Assessment)

Chester’s equalization for 2005 is 54% (Sale to assessment)Chester’s equalization for 2005 is 54% (Sale to assessment)

Data Collection and Data Collection and Verification of SalesVerification of SalesData Collection and Data Collection and Verification of SalesVerification of Sales

Foundation of ProjectFoundation of Project Information CollectedInformation Collected

Bedrooms and BathroomsBedrooms and Bathrooms Attics and BasementsAttics and Basements Exterior MeasurementsExterior Measurements OutbuildingsOutbuildings Land TopographyLand Topography

StaffStaff Project ManagerProject Manager

Crew Chiefs Crew Chiefs (review day to day work)(review day to day work) Data CollectorsData Collectors ((most visible members of most visible members of

the teamthe team)) Quality Control Quality Control (data entry)(data entry)

Exterior InspectionExterior InspectionExterior InspectionExterior Inspection StyleStyle Quality/DesignQuality/Design Story HeightStory Height Roof StructureRoof Structure Roof CoveringRoof Covering Wall Wall

ConstructionConstruction Year Built Year Built

Interior InspectionInterior InspectionInterior InspectionInterior Inspection Room CountRoom Count Baths CountBaths Count Wall FinishWall Finish Floor FinishFloor Finish HeatingHeating Bath StyleBath Style Kitchen StyleKitchen Style Quality Quality

Sales AnalysisSales AnalysisSales AnalysisSales Analysis

Town Market Determines ValuesTown Market Determines Values No Preconceived Estimates of ValueNo Preconceived Estimates of Value In-Depth Study of Town SalesIn-Depth Study of Town Sales Determine Land PricesDetermine Land Prices Determine Building Value and Determine Building Value and

DepreciationDepreciation Delineate NeighborhoodsDelineate Neighborhoods Develop Computer Models Based On Develop Computer Models Based On

MarketMarket

ValuationValuationValuationValuation

Analysis of Market InformationAnalysis of Market Information SalesSales Income and Expense InfoIncome and Expense Info

-- Local Realtors/Agents/Banks-- Local Realtors/Agents/Banks

Land Valuation by LocationLand Valuation by Location Comparable PropertiesComparable Properties Review of All Values in the FieldReview of All Values in the Field Feedback from Informal HearingsFeedback from Informal Hearings

$$$

Median Sale Price in Median Sale Price in ChesterChester

Single Family Home $334,000

Condominium $226,000

Vacant building lot $160,000

Sales Ratio StudiesSales Ratio Studies Please see supplemental handouts for detailsPlease see supplemental handouts for details:: 2 years sales are in at an assessment to 2 years sales are in at an assessment to

sale ratio of sale ratio of 102% with a COD of 6.06%102% with a COD of 6.06% 1 year of sales, most recent of 4/1/05 1 year of sales, most recent of 4/1/05

through through 3/31/06 in at A/S ratio of 100% with 3/31/06 in at A/S ratio of 100% with a COD of a COD of 6.33%6.33%

22NDND Quarter of 2006 4/1/06 through 6/30/06 Quarter of 2006 4/1/06 through 6/30/06 shows shows A/S ratio of 99% with a COD of A/S ratio of 99% with a COD of 9.34%9.34%

State of NH Dept of Revenue looks for A/S State of NH Dept of Revenue looks for A/S ratio of ratio of 110% – 90% and a COD of 10% or 110% – 90% and a COD of 10% or lessless

Old to New AssessmentOld to New Assessment For 161 sale properties from time of 4/1/2004 For 161 sale properties from time of 4/1/2004

through 3/31/2006, the old to new increase in through 3/31/2006, the old to new increase in assessed value is 100% or double in valuation.assessed value is 100% or double in valuation.

Old Value $26,129,400 vs New Value Old Value $26,129,400 vs New Value $51,722,100$51,722,100

Old to New Preliminary Town Value increase Old to New Preliminary Town Value increase of 87% Approx $318,698,900 old to approx. of 87% Approx $318,698,900 old to approx. $594,969,315. Increase is slightly lower $594,969,315. Increase is slightly lower overall due to Current Use Assessed values overall due to Current Use Assessed values and to Utility Values not completed.and to Utility Values not completed.

Chester’s Project Chester’s Project ScheduleSchedule

2005 properties2005 properties* * Project Set Up/Start UpProject Set Up/Start Up 11/2005 11/2005* * Sales Verification of last 2 yearsSales Verification of last 2 years 11/2005 - 06/200611/2005 - 06/2006* Sale Properties (approx. 200)* Sale Properties (approx. 200) 02/2006 - 06/200602/2006 - 06/2006* * Sales and Cost AnalysisSales and Cost Analysis 02/2006 - 05/200602/2006 - 05/2006* Convert current database to new * Convert current database to new 02/2006 - 03/200602/2006 - 03/2006* * Field Review (Exterior Inspections)Field Review (Exterior Inspections) 06/2006 - 07/200606/2006 - 07/2006* * Data Entry Data Entry 02/2006 - 07/200602/2006 - 07/2006* * Town Review of ValuesTown Review of Values 7/13 – 7/26 7/13 – 7/26* Notices Sent to Taxpayers* Notices Sent to Taxpayers 7/28 7/28

* Informal Hearings* Informal Hearings 8/7 – 8/11 8/7 – 8/11* * Final Notices for those attending Hearings 8/14Final Notices for those attending Hearings 8/14

* Finalization of Project* Finalization of Project 08/15/2006 08/15/2006

Informal Hearing ProcessInformal Hearing ProcessInformal Hearing ProcessInformal Hearing Process

Final Review of Values by Town Assessor

Notification to Taxpayers of New Assessment (est. 7/28)

Informal Hearings Begin (est. Aug. 7)

Valuation Review

Change Notice as a result of Hearings (est. Aug. 14)

Appeal to Chester Assessor’s Office by March 1, 2007

Appeal to Board of Land and Tax Appeals summer 2007

Web AccessWeb AccessWeb AccessWeb Access

Comparable SalesComparable SalesComparable SalesComparable Sales