What is the first step in calculating the General COD?

To calculate the General Coefficient of Dispersion (COD), the first step involves determining the relationship between the assessed values and the actual sale prices of properties. This is achieved by dividing the assessed value by the sales price for each property that has been sold. This ratio provides insight into how well the property is assessed compared to its market value.

By utilizing the assessed value and dividing it by the sales price, assessors can evaluate the equity and uniformity of property assessments within the jurisdiction. This step is fundamental as it lays the groundwork for further calculations, such as determining averages or variances which are crucial for understanding broader trends in property assessment accuracy.

In contrast, adding all assessed values, recording the number of sales, or calculating average sales price, while important in the overall assessment process, do not serve as the foundational first step needed to ascertain the dispersion of assessments relative to market performance.