What is one example of a real estate transaction that must be considered by tax assessors?

Recent sales are an essential consideration for tax assessors because they provide crucial, up-to-date market data that reflects current property values. Assessors rely on these transactions to establish accurate assessments, which in turn help determine property taxes based on fair market value. The information gathered from recent sales can indicate trends in the local real estate market, such as appreciation or depreciation in property values, influencing future assessments and tax calculations.

In contrast, while other types of transactions such as barter, gift, or foreclosure transactions may have relevance in specific contexts, they do not provide the same level of insight into current market conditions. Barter transactions might not accurately reflect monetary value, gift transactions often have different valuation implications and may not involve a sales price, and foreclosure transactions can skew values due to their atypical nature. Therefore, recent sales are fundamentally important for tax assessors to maintain equitable and fair property valuation.