How is property appraised?
At least once every five years, the property appraiser or a staff appraiser will visit and inspect each property. However, individual property values may be adjusted between visits in light of sales activity or other factors affecting real estate values in your neighborhood. Sales of similar properties are strong indicators of value in the real estate market. To estimate the value of a property, the property appraiser must identify the properties that have sold, their sale prices and the terms and conditions of the each sale. Each transaction must be studied to make sure that it is an arms-length transaction. An arm’s length transaction is a sale involving a willing seller and a willing buyer without any undue pressure or special incentives (such as family relationships). Once this is determined, the property appraiser can base the value of a property on sales of comparable properties. That is why property appraisers maintain an accurate data base of real estate information. The Florid
The value of your property is considered each year as of Jan 1st. At least once every five years, the Property Appraiser or a staff appraiser will visit and inspect each property. Individual property values may be adjusted in light of sales activity or other factors affecting real estate values in your neighborhood. Sales of similar properties are strong indicators of value in the real estate market. To estimate the value of a property, the Property Appraiser must identify the properties that have sold, their sale prices and the terms and conditions of the each sale. Each transaction must be studied to make sure that it is an arms-length transaction. An arm’s length transaction is a sale involving a willing seller and a willing buyer without any undue pressure or special incentives (such as family relationships). An arm’s length transaction also means that the property was on the market for neither an excessive nor short period of time. Once this is determined, the Property Appraiser c
To find the value of any piece of property the assessor must first know what properties similar to it are selling for, what it would cost today to replace it, how much it takes to operate and keep it in repair, what rent it may earn, and many other dollar facts affecting its value, such as the current rate of interest charged for borrowing the money to buy or build properties like yours. Using these facts, the assessor can then go about finding the property’s value in three different ways.
There are three approaches to value stipulated in the Florida Statutes: 1.) “Direct Sales Comparison”, 2.) “Replacement Cost”, and 3.) “Capitalization of Income”. In Lee County, we use a computer assisted mass appraisal system that incorporates elements of all three approaches to value. Please keep in mind, however, that the best evidence of the fair market value is when several properties similar to yours sell. The propertys fair market value can be determined employing one or more of three different methods. The first method is to find properties like yours which have recently sold. However, their selling prices must be analyzed very carefully to get the true picture. One property may have sold for more than it was really worth because the buyer was in a hurry to occupy it and would pay any price to get in. Another may have sold for less than it was really worth because the owner needed cash right away, so was willing to sell to the first buyer making an offer. The Property Appraiser
Transactions occur each day in the marketplace that effect property assessments; for instance, property is bought or sold, built or renovated, rented or leased. There are many factors that an appraiser must consider when estimating the value of property: the recorded sales of similar properties; the replacement cost; the property’s location, size and condition; income from the property; operating costs; and net proceeds from the sale. There are three approaches to value that an appraiser must consider when determining a property’s market value: Cost Approach – This approach considers how much it would cost to replace a structure with one that has similar utility. Once this cost is estimated it is adjusted to account for the depreciation of the subject property due to wear and tear. Finally, the value of the land, as if it were vacant, is added to get the value of the entire property. Sales Comparison Approach – This approach also known as the market approach considers the sales of simi
Related Questions
- I won the bid on a HUD home, but bid more than the appraised value to ensure that they would be awarded the property. Can I still buy the home for $100 down?
- Why has Zillow undervalued this property on this listing, it has been appraised before rehab higher?
- How is property appraised for property tax purposes?
