must utilize applicable features of each method and apply them uniformly to similar properties in a process known as mass appraisal. Sales Approach In order to determine the value of your property, the appraisal district must first know what properties have sold, and how much they are selling for in maintaining a today’s market. By database of real estate transactions, we can arrive at the property value by studying sales of comparable properties. Cost Approach This method of appraising property is based on how much it would cost today to build an identical structure on the property. If the property is not new, we must also determine how much value the building has lost over time due to depreciation. Income Approach This method is preferred when appraising an income producing property. This approach determines value through analysis of income and expenses to determine market value. Consideration is given for operating expenses, maintenance costs, and the return (or profit) that could be reasonably expected on the property. Mass Appraisal There are generally only two kinds of appraisal: and Both types of fee appraisal mass appraisal. appraisals utilize the same basic appraisal principles and theories. A fee appraisal utilizes the three methods discussed above but with only one parcel of property being valued. Mass appraisal values the entire county where market areas, neighborhoods, subdivisions, and large groupings of similar properties are appraised at one time by adopted standards. Market Value and Assessed Value - the difference? What’s
must utilize applicable features of each method and apply them uniformly to similar properties in a process known as mass appraisal. Sales Approach In order to determine the value of your property, the appraisal district must first know what properties have sold, and how much they are selling for in today’s market. By maintaining a database of real estate transactions, we can arrive at the property value by studying sales of comparable properties. Cost Approach This method of appraising property is based on how much it would cost today to build an identical structure on the property. If the property is not new, we must also determine how much value the building has lost over time due to depreciation. Income Approach This method is preferred when appraising an income producing property. This approach determines value through analysis of income and expenses to determine market value. Consideration is given for operating expenses, maintenance costs, and the return (or profit) that could be reasonably expected on the property. Mass Appraisal There are generally only two kinds of appraisal: fee appraisal and mass appraisal. Both types of appraisals utilize the same basic appraisal principles and theories. A fee appraisal utilizes the three methods discussed above but with only one parcel of property being valued. Mass appraisal values the entire county where market areas, neighborhoods, subdivisions, and large groupings of similar properties are appraised at one time by adopted standards. Market Value and Assessed Value - What’s the difference?
How-My-Property-is-Appraised.docx