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4 | Page <br /> <br />SALES ANALYSIS SECTION <br /> <br />Sales Analysis <br /> <br />The assessment function is governed by Minnesota State statute. The law requires that all real <br />property be valued at market value, which is defined as the usual or most likely selling price as of <br />the assessment date of January 2nd of each year. Assessors are historians and measure the <br />market based on sales which have occurred previous to the assessment date. Assessors do not <br />create the value or predict what the market will do; rather, the assessor’s job is to follow the <br />patterns set by the real estate market. <br /> <br />Information on the sales of real estate is of paramount importance to the assessors in a market- <br />based property tax system. Sales information is required to be submitted electronically using the <br />program developed by the Minnesota Department of Revenue. This program is known as the <br />Electronic Certificate of Real Estate Value (eCRV). The Department of Revenue requires all County <br />Assessors to utilize a specified time period for sales analysis. This time period of 12 months is <br />from October 1st through September 30th preceding the assessment date. Sales within this time <br />period will be used to determine the changes in assessed value that may be needed in each <br />community for the impending assessment. <br /> <br />For example, the sales that occurred between October 1, 2024, and September 30, 2025, are <br />used to establish the January 2, 2026, assessed values. <br /> <br />The assessor’s office is charged with setting estimated market values for tax purposes at actual <br />market value. The relationship between sales prices to estimated market value is called the sales <br />ratio. The target median ratio range is set by the assessor’s office for all Washington County <br />communities (for all classes of property); the range established for the 2026 assessment is 93%- <br />96%. We make every effort to make certain that each municipality in Washington County falls <br />within this range. In this way, we ensure an equitable distribution of the property tax burden for <br />all Washington County taxpayers. <br /> <br />Sales Statistics Defined <br /> <br />In addition to the median ratio, we have the ability to measure other statistics to test the accuracy <br />of the assessment. Some of these are also used at the state level. The primary statistics used are: <br /> <br />Median Ratio <br />This is a measure of central tendency. The median of a sample is the value for which one-half <br />(50%) of the observations (when stratified) will lie above that value and one-half will lie below <br />that value. The median is not susceptible to extreme observations referred to as outliers. We use <br />this ratio, much like the mean, not only to measure our assessment level, but also to analyze <br />property values by municipality, type of dwelling and value range. These studies enable us to <br />track market trends in neighborhoods, popular housing types and classes of property.