What do sales ratio studies analyze?

Sales ratio studies are focused on comparing assessed values to market values of properties to determine how accurately properties are valued for taxation purposes. The analysis helps appraisers and assessors understand the effectiveness of the assessment process by showing the degree to which assessed values align with what properties actually sell for in the market.

When assessed values are lower or higher than market values, it may indicate issues with property valuations, which can lead to inequities in property taxation. By conducting these studies, officials can identify trends, ensure compliance with uniform assessment standards, and make necessary adjustments to ensure a fair taxation system.

The other options do not accurately capture the primary focus of sales ratio studies. The first suggests a study of assessed values in relation to property taxes, which does not directly relate to market value comparisons. The third option about property sizes and market demands shifts focus away from valuations entirely, while the fourth option looks at historical property prices rather than assessing current values in comparison to the market.