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Assessments for residential properties (1, 2, 3 family houses and
condominium units) are typically based on the market approach to
value. This approach incorporates a statistical analysis of property
sales to determine market values as of January 1. This analysis
takes into consideration only those transactions that are deemed
"arm's length", e.g. sales that took place between a willing
buyer and a willing seller, when neither party was under any compulsion
to make the transaction. This data is incorporated into computerized
valuation models, which simulate varying market conditions in each
neighborhood and form the basis for residential values.
Assessments for office, retail, apartment and industrial properties
are typically derived using the income and cost approaches to value.
Under the income approach, fair cash value is derived from the property's
ability to generate income. The assessors examine the rents generated
by office, apartment, retail and other commercial buildings, subtract
operating expenses to achieve a net income, then divide net income
by an appropriate capitalization rate, in order to derive a market
value for each parcel of commercial property.
The cost approach measures the estimated cost of replacing or reproducing
the buildings and improvements on a property - less any depreciation
- plus the value of the land on which the building stands. The cost
approach is mainly employed in determining the value of special
purpose properties.
Based on extensive research of Shrewsbury's real estate market
each year, values are adjusted to reflect any changes that have
occurred in the market. Assessed values may vary from neighborhood
to neighborhood and from property type to property type.
If you have a question on the assessment of your property, contact
the Assessors Office during office hours. We will do our best to
answer your questions and explain the process to you.
The Commonwealth of Massachusetts Department of Revenue (DOR) certifies
assessed values every three years. This is done through an extensive
statistical analysis and audit of the procedures used by the local
Assessors Office. Fiscal 2007 is our next certification (revaluation)
year. Sales that have occurred during calendar year 2005 will be
used for our analysis. The assessments for FY 2007 will represent
full and fair values as of January 1, 2006.
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