How are property values determined?

By an on-site inspection of both land and all improvements. A drawing of all new improvements is made giving the dimensions. The square footage area is figured and the type of construction such as brick, frame, etc. is determined. Then, the value is determined through the use of the three approaches to value as follows:

  1. Market Data or Comparative Sales Approach - the application of this approach obtains an estimate of value of property by comparing it with similar properties recently sold in the same area. The fair market value obtained by this approach might be described briefly as "the price paid by a willing buyer to a willing seller, neither being under abnormal pressures."
  2. Cost Approach - the current cost of reproduction, less accrued depreciation of all types (physical, functional, and economic), plus the value of land as determined by comparative sales, provides an estimate of the market value of a property in this approach.
  3. Income Approach - market value is estimated in this approach by capitalizing the income earnings a commercial or industrial property is capable of producing.

Show All Answers

1. Why do we have Real Estate Assessments?
2. How can I calculate my Real Estate Taxes?
3. What should I do if I find an error in my property description?
4. When should I be notified of my new Assessment and when will it take effect?
5. Where can I obtain copies of deeds and plats?
6. Where does the Office of the Real Estate Assessor receive its authority?
7. Who is responsible for making the assessment, how is he/she appointed, and to whom is he/she responsible?
8. What is the purpose of conducting real estate assessments?
9. What are the general functions of the Office of the Real Estate Assessor?
10. What is the effective date of an assessment?
11. Who determines the tax rate and real estate taxes?
12. Who is responsible for mailing the real estate tax bills and who collects the taxes?
13. What is the meaning of Land – Improvements – and Total as it appears on the tax notice?
14. Who assesses property owned by public service corporations?
15. What is the ratio of assessment to fair market value?
16. How are property values determined?
17. Will home maintenance increase your assessment?
18. What causes a property value to change?
19. Do demolitions affect assessments?
20. Does the City have a program to assist senior citizens and disabled persons on their property taxes?
21. What courses of action are available to an aggrieved property owner?
22. How often are Supplemental Bills generated due to new construction, additions, or demolitions?