What is the ideal sales ratio according to theoretical standards?

The ideal sales ratio, according to theoretical standards, is typically considered to be 100%. This ratio is significant because it represents a 1:1 relationship between property assessments and actual sales prices, illustrating a perfect alignment in the valuation process. In practice, a sales ratio of 100% indicates that properties are assessed at their full market value, fostering equity in taxation and ensuring that all property owners are fairly contributing to local revenue based on the true value of their property.

While a sales ratio of 90% may be viewed favorably and can occur in certain markets, it still implies underassessment of properties, meaning that some homeowners may carry a heavier tax burden than others, which is why it is considered an acceptable range rather than the ideal standard. Recognizing that the goal of property assessments is to achieve the fairest representation of property value, the focus remains on reaching that targeted 100% ratio for overall equity and consistency within the assessment process.