What is fair market value and how is it determined?
Fair market value is the amount an informed buyer is willing to pay, and an informed seller is willing to take for property in an open market without undue influences. The 3 approaches to value are the sales, the cost and the income approach. The County Appraiser considers all 3 when determining value.

The Sales Approach
The County Appraiser reviews similar properties that have sold, compares them to your property and may make adjustments for differing characteristics. This approach is typically applied to residential property in an area with a substantial number of sales.

The Cost Approach
In the cost approach, the county determines replacement cost new of the property less depreciation. This approach is used when property is new or unique, with few sales in the area.

The Income Approach
In the income approach, the value of the property is estimated using the income the property is expected to produce in the future. It is used to value commercial property and apartments when sufficient market rent information is available.

Documentation of Value
County Appraisers can provide documentation showing how property was valued. For example, the comparable sales sheet shows similar properties that have sold, adjustments, and the estimated value of your property. The Property Record Card (PRC) shows the data collected on your property (includes measurements, rooms, condition, date of construction, etc).

Show All Answers

1. Why do County Appraisers appraise property?
2. How is property valued for tax purposes?
3. What is fair market value and how is it determined?
4. Should I appeal the value of my property?
5. How do I appeal my Notice of Value?
6. How do I appeal by Paying Under Protest?
7. What are the burdens of proof on appeal?