The Market Value Index (M.V.I.) is the standard method of
correlating the replacement cost and market comparison approaches
for residential properties.
It is expressed on property record
cards (worksheets) as a positive or negative multiplier, carried
to two decimal places, after the application of depreciation.
A separate calculation may be made
for different types of housing within homogeneous areas, documented
on an appropriate departmental form, reviewed and approved by supervisory
personnel.
Calculation and Selection:
1. The calculation and selection
of an M.V.I. in CAMA is described in the CAMA Manual.
2. The geographic area (CAMA
set or subset) and type of housing (model) for which an M.V.I. is
calculated should be clearly identified within CAMA.
3. One sale is not sufficient
to determine an M.V.I. Where current data is lacking, assessors
may retrieve sales in CAMA from previous assessment cycles and/or
expand the geographic area to be considered.
4. The CAMA system will produce
an indicated M.V.I. for each sale listed, by dividing the residual
sale* by the depreciated replacement cost.
5. The M.V.I. range, as determined, must be analyzed and
a selection made from within the range. The selected M.V.I. will
then be utilized for all similar residences within the identified
area.
Refinements to this process will become possible as more and more
sales data is accumulated. Different M.V.I. selections may be made
for differences in grade, size, age and style.
An M.V.I. of 1.00 may be selected and will be printed on the worksheet.
An M.V.I. exceeding 1.25 or less than .75 should generate a careful
supervisory review to determine if all factors are correct such
as grade, depreciation, land value, etc.
* Residual Sale is defined as the value of a residence after
deducting the full land value from the total sale price. The land
value deducted is to be the current land value indicated by the
proposed full cash value.
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