Which type of sale should not be automatically excluded from a sales ratio study?

The assertion that multiple parcel sales should not be automatically excluded from a sales ratio study is grounded in the recognition that these transactions can provide valuable insights into property value trends, especially within a specific market area.

Multiple parcel sales often reflect real market conditions and can indicate the collective value of properties when sold together. Such sales may occur in various circumstances, including developers purchasing large plots of land for development, and they can be representative of a wider market trend rather than just isolated sales of individual parcels.

The analysis of multiple parcel sales can also help assess how properties are valued when sold as a group compared to their individual sales, which is critical for understanding market dynamics and influences on property values. By including these sales in a ratio study, assessors can better gauge overall market behavior and inform more accurate property assessments.

Other types of sales, such as foreclosure or commercial property sales, may typically have distinctive situations or motivations behind them that might skew their impact on market trends. Residential single sales can also reflect stable market conditions. However, the presence of multiple parcel sales directly affects broader market analysis and should therefore be included in the ratio studies to ensure a comprehensive evaluation of property values.