Town of Gray, ME

Attention Commercial, Industrial, Apartment and Mixed-Use Owners:

Income and expense questionnaires went out in the mail Friday, March 15, 2024. The purpose of the income and expense questionnaires are to help establish market rates for the income approach to value. The income approach is one of three recognized approaches to value and is quite often utilized on these types of properties.

2024 Property Revaluation Project

The Town of Gray, Maine has hired KRT Appraisal (KRT) to conduct a Revaluation of all properties in the Town. There are five major phases to the Revaluation: Sales Review/Validation, Market Analysis, Valuation, Field Review, and Informal Hearings. During these phases many tasks will be completed to ensure the project is successful. Below is a general outline and explanation of each phase of the project.

PHASE 1: SALES REVIEW/VALIDATION: During this phase, KRT appraisers field review each property that sold between April 1, 2022, and March 31, 2024, and review the information on the property record card for data accuracy. The appraiser will make notes regarding the property location, size, condition, quality of construction, and numerous other characteristics that may affect value. The goal is to gain a clear understanding of what sold and for what price. In conjunction with the Assessing Office, KRT will begin the process of qualifying sales as “Arm’s Length”. Only qualified sales with market exposure between a willing buyer and seller will be used in the analysis.

KRT Field Representatives will carry Picture IDs, Municipal Letters of Introduction, and have their vehicles listed with both the Assessor’s Office and Police Department.

PHASE 2: MARKET ANALYSIS: A variety of resources are used to analyze the real estate market. KRT will be analyzing property sales that took place over the last two years to determine which market factors influenced property values. KRT Appraisal will gather and use information from MLS, property managers, developers, and local real estate professionals. Once all the data is collected and reviewed for accuracy, the appraiser will determine land values and delineate neighborhoods, which rate the desirability of locations throughout the Town as determined by actual market activity.

PHASE 3: VALUATION: Valuation is done using one of the three recognized appraisal methods: Cost Approach, Income Approach and Sales Comparable Approach. Mass appraisal uses a market adjusted cost approach to generate assessments.

During this phase, individual characteristics of the building are analyzed using information gathered in both phases 1 and 2. Each property is compared to other comparable properties with similar characteristics. Then the market values of the improvements are added to the land value that was previously determined. This value is the final estimate for each parcel of property, building and land.

PHASE 4: FIELD REVIEW: Field Review is the method of checking and re-checking both the values that have been determined and the accuracy of the data used. During this phase, properties are viewed in the field by experienced appraisers to ensure that the appraisal methodology established from the sale properties is consistently applied to the entire population of properties with the Town of Gray.

PHASE 5: INFORMAL HEARINGS: Once the Field Review is completed and the values are approved by the Assessor’s Office, a notice stating the proposed value will be mailed to each property owner. The goal is for this phase to be completed in the early summer of 2024. At that time anyone with questions concerning the revaluation process or the value established for their property will have an opportunity to meet with a member of KRT's staff.

After all five phases are completed, all data, files, records, etc. used in the revaluation will be turned over to the Assessor’s Office for retention.