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Assessed Value and Market Value
The source of the cost of parcels in this study is
the 1995 tax assessment of property values. This is used as a baseline
to estimate the relative price of properties. On average the market
price for vacant residential properties was 2.7 times the assessed
value of the property. This factor was used in the creation of the
scenarios to estimate a more real estimate
the cost of purchasing land.
The following is a list of sale price of vacant residential
land in Charlestown over the past 2 years along with the assessed
value of the land. It is apparent from these data that there is
a wide range in the differences between assessed value and market
value. This increases the uncertainty in the estimated difference
for each individual property. However, this method is useful for
estimating the average difference between assessed value and market
value and is useful for making projections of the cost purchasing
large amounts of land.
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