Estimating market prices and assessed values for income properties

Assessors perform property valuations for the purpose of tax assessment. Bu yers and sellers make investment decisions culminating in a market price. T he valuation by assessors is supposed to be fair and equitable and to amoun t to a prescribed proportion of market value. We investigate the property f eatures considered by assessors in arriving at the assessed value, and by b uyers and sellers in arriving at the market price. We also explore what fac tors appear to be considered differently by the assessors and the market th us contributing to overassessment or underassessment of property taxes. The analysis deals with income properties centrally located in Stockholm, Swed en.