Town of Nantucket, MA
Commercial, Industrial, Apartments and Mixed Use Properties
KRT Appraisal is contracted with the Town of Nantucket to perform a Commercial, Industrial, Apartment and Mixed-Use (CIA)full revaluation for Fiscal Year 2024.
KRT will complete the following five phases as required by the Massachusetts Department of Revenue: (1) Data Collection, (2) Sales Review/Validation, (3) Market Analysis/Valuation, (4) Field Review, and (5) Department of Revenue Certification. During these phases, many tasks will be completed to ensure the Full Revaluation is successful. Below is a general outline and explanation of each phase of the project.
PHASE 1: DATA COLLECTION: The first phase, Data Collection of all CIA properties, will begin in November of 2022. During this phase "Data Collectors" go to each CIA property in the Town to measure the exterior of each building and attempt to inspect the interior if the owner is available at the time of the visit. These Data Collectors note the building’s location, size, age, quality of construction, improvements, topography, utilities, and numerous other characteristics both inside and out. The data collected is subject to verification by the Town Assessor and a KRT Supervisor. 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: SALES REVIEW/MARKET DATA VALIDATION: During this phase, KRT appraisers will field review each property that sold between January 1, 2022, and December 31, 2023, 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 sales with market exposure between a willing buyer and willing seller (in other words, an “arm’s length” sale) will be used in the analysis. KRT appraisers will analyze all income and expense data that was submitted by the property owners along with any other information deemed relevant.
PHASE 3: MARKET ANALYSIS/VALUATION: A variety of resources are used to analyze the real estate market. KRT will be analyzing property sales that occurred between January 1, 2022, and December 31, 2023, to determine which market factors influenced property values. KRT will gather and use information from Costar, Realty Rates, Multiple Listing Service (MLS), property managers, developers, and local real estate professionals. Once all the data is analyzed, the computer models will be calibrated, and the valuations will be generated.
Valuations are done using one of the three recognized appraisal methods: Cost Approach, Income Approach and Sales Comparable Approach.
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 market data is consistently applied to the entire CIA population of properties within the Town.
PHASE 5: Department of Revenue Certification: Once the Field Review is completed and the values are approved by the Assessor’s Office, The Department of Revenue begins their auditing process. During the audit, the Department of Revenue field advisor reviews all analysis and properties to ensure that they meet the requirements for certification.
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.