Post on 30-Dec-2015
Three Approaches To Value On Your Property Record Card
John Burgiss, RESForsyth County Tax Assessor/CollectorEmail: burgisjt@forsyth.ccTelephone: 336.703.2301
Presentation Agenda
Why are the three approaches to value important in mass appraisal?
Forsyth County Valuation History Where should the valuation data be
displayed? Examples of valuation data display Successes and Improvements Questions and Comments
Why Are The Three Approaches Important?
Generally Accepted Appraisal
Theory
NC General Statutes
Court Decisions/Other Rulings
Public Relations
Generally Accepted Appraisal Theory
“Since about 1910, three approaches to estimating market value have been evident in the literature of appraisal: sales comparison, cost, and income. All have been refined through the years…” Property Appraisal and Assessment Administration, 1990, Page 82
NC General Statutes
GS 105-283. Uniform Appraisal Standards – “All property… shall…be appraised or valued at its true value in money.”
GS 105-317(a)(1),(2). Appraisal of Real Property – adaptability of property uses, past income, probable future income, cost, etc.
Court Decisions/Other Rulings
Belk-Broome emphasizes the income approach as the primary appraisal method for appraising income producing properties.
Greensboro Office Partnership points toward the use of market rents in determining the value of an income producing property.
Philip Morris USA discusses the appropriateness of a certain cost approach method.
Public Relations
Appraisal Accuracy
Appraisal Competency
Appraisal Efficiency
Appraisal Transparency
Forsyth County Valuation History
Forsyth County started conducting “In-House” revaluations in 1988.
Revaluation Dates: 1988, 1993, 1997, 2001, 2005, 2009, 2013
First published Income Approach guide produced for the 1976 Revaluation
First published Income Section in the Schedule of Values for the 1997 Reval
Cost/Market “Hybrid” Approach for Residential Properties
Valuation Approaches - Display
Schedule Of Values, Standards and Rules
Property Record Card
..in the interest of full disclosure>>
The Internet
Successes and Improvements
Public Compliments
Clarity of page 1 valuation summary Commercial Sales Comparison Card print speed for large
commercial properties Few minor display bugs
Additional Property Record Card
Attached is an example of a property containing an income producing commercial property and a single family dwelling. Two approaches used; total value brought together on the Income Approach.