As the Cook County Assessor’s Office (CCAO) considers appraisals as evidence of value, we must understand the quality and accuracy of these value estimates when deciding assessed value appeals. To that end, we performed a sales ratio analysis to quantify the performance of appraisals submitted to our office. We were interested in knowing whether any systemic patterns emerge.
For this analysis, we compared 60 appraisals submitted with our office to subsequent sale prices. The analysis found that commercial appeal appraisals underestimated market value by 38%. In other words, the median ratio of appraisal to sale price was 62%.
Read the full analysis at the link below.