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.

Court Decisions/Other Rulings

Blue Ridge Mall 08 PTC 026

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

Commercial Property – Income Approach

Primary valuation approach identified

Residential Property – Three Approaches

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

Questions??? Comments???

**Thank You**

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.

Added in value of res structure and estimated land value

Valuation Approach – Data Display