Section 50 IAC 30-3-3 - Analysis of markets and submarketsAuthority: IC 6-1.1-31-1; IC 6-1.1-31-6
Affected: IC 6-1.1-31-6
Sec. 3.
(a) A market segment is delineated by identifying the likely actual or potential buyers and sellers of a property based on its current use. A submarket segment is delineated by identifying the preferences of a particular set of buyers and sellers for real property based on its current use.(b) Consistent with generally accepted appraisal principles, identification of markets and submarkets may include consideration of the following factors:(1) Property type (e.g. single-unit residence, retail shopping center, office building, etc.).(2) Property features, including, but not limited to, the following: (A) Property attributes, including those listed in section 2 of this rule.(B) Customer base, consisting of the most probable users and based on the economic differences and similarities of the properties, including analysis of population, employment, income, and activity patterns.(3) Market area, defined by geographical market and location. Market area may not necessarily be limited to the same geographic area or taxing jurisdiction. Depending on the property type, a market area may be local, regional, national, or international in scope. It may be urban, suburban, or rural. It may correspond to a district or neighborhood of a city.(4) Available substitute properties, which are equally desirable and compete with the subject property in its market or submarket area, which may be local, regional, national, or international.(5) Other properties or property types that are complementary to the subject property, which are also referred to as support facilities.(c) The presence or absence of any attribute described in subsection (a) in a market segmentation analysis does not necessarily invalidate the market segmentation analysis.Department of Local Government Finance; 50 IAC 30-3-3; filed 11/13/2017, 11:10 a.m.: 20171213-IR-050170173FRA, eff 1/1/2018