Property Valuation
Physical Changes in Your Property
A Property’s value may increase or decrease as a result of physical change.
- Improvements such as new rooms, a finished basement, or extensive remodeling and modernization will increase the value.
- Paint a new roof or repairs may not increase the value but will keep the home in good condition so the value does not drop.
Valuation of residential property
The Market Approach
By law, residential properties must be valued by the market approach. This predicts the price a property would bring on the open market in a transaction between a willing, informed, and knowledgeable buyer and seller. It includes a review of comparable sales in the study period. Time Trending is a technique for estimating the current market value of residential properties.
Valuation of Non-Residential Property
Non-residential property is appraised using the cost approach, the income approach and market approach
The Market Approach
The market approach predicts the price a property would bring on the open market in a transaction between a willing and informed buyer and seller when each party is knowledgeable concerning all the users to which the property is adapted and for which it is capable of being used.
The Cost Approach
The cost approach estimates the material and labor costs to replace a building with a similar one. If the building is not new, the appraisal must consider its age and how much it has depreciated overtime
The Income Approach
The income approach is used for properties such as stores. Office buildings and warehouses. This method considers the landlords’ income and operating expenses and the financial return most people would expect from a given type of investment property.
The notice of valuation
The clients send a notice of valuation to property owners yearly that:
- Describes the property you own
- Gives the actual value for both the prior and current year
- Is the form to be used in submitting an appeal to the client
If your property’s value has not changes, your January tax bill is your notice of valuation for the coming year. Study your notice of valuation carefully. Your property value will affect your tax payment due the following year. If you believe your property’s assessed value is incorrect; you can inspect the client’s records on your property and other properties.
Appealing a valuation
When a property value is appealed the clients reviews the value using a methodology that is similar to an appraisal. This allows the public and our appraisers to form a basis for discussion.
