How is the Segmented Coefficient of Deviation calculated?

The Segmented Coefficient of Deviation is calculated by comparing a specific property class to all other classes combined. This approach allows for a detailed understanding of the performance and assessment quality of that particular property class relative to the broader market. By isolating the data of one class and contrasting it with the accumulated data of all other classes, assessors gain insight into variations and trends that could influence tax assessments and property valuation accuracy.

This method is particularly useful in identifying discrepancies or anomalies within a specific segment, which can help guide policy decisions or valuation strategies. The comparison is critical, as it acknowledges the differences among property types and their unique market conditions, leading to more informed and equitable assessments.

The other approaches, such as averaging sales ratios across all property classes or analyzing only recent sales or new constructions, do not provide the focused insight required for assessing the performance of a singular property class in comparison to the overall market. These methods may dilute the specific trends and factors that are pertinent to understanding the segmented performance.