The main function of the Real Property Department is to discover, list, and appraise all real property. All property is appraised at its fair market value as of January 1 st, except as otherwise allowed by federal or state law. The market value of property is determined by the application of generally accepted appraisal methods and techniques required under federal and state law. Same and similar appraisal methods and techniques must be used to appraise similar types of property. In determining the market value of property, an Appraisal District considers the cost, income, and market sales comparison methods of appraisal and uses the most appropriate method or a combination of methods for the property being appraised. For example:
Residential property is appraised using a combination of cost information and market sales data. The residential schedules are built using construction cost data, and then adjusted using available market sales.
Commercial property is appraised using the cost approach to value from data taken out of nationally recognized appraisal manuals, local construction cost data and then adjusted as necessary based on the property’s individual characteristics and/or taking into consideration the income and expense data (income approach to value) of comparable properties of the subject property. Whenever market sales data is available, the cost approach is tested for accuracy.