What is the significance of determining the Deviation from the Average Ratio?

Determining the Deviation from the Average Ratio is significant because it provides insights into discrepancies between property assessments and actual sale prices. This metric is useful for appraisers in identifying whether a property has been assessed at a value that is consistent with its market performance. When the ratio reveals a significant deviation, it indicates that the assessed value may not accurately reflect the property's market value, thereby highlighting potential issues with equity among properties and the effectiveness of the assessment process. This information can be crucial for decisions regarding appeals and adjustments in property tax assessments, ultimately impacting both property owners and municipal revenue. Understanding these discrepancies helps ensure more accurate appraisals and fair treatment for all property owners within the market.