The Sales Comparison Approach to value is used extensively by fee appraisers. When you get your home financed the bank always requires an unbiased opinion of value so that they know they are not lending more money than the property is worth. For houses especially, the Sales Comparison Approach is seen as the “go to” approach to valuation by appraisers, lenders, Fannie Mae and Freddie Mac.
The Sales Comparison Approach is based on the principle of contribution, that all of the characteristics of land and buildings contribute to the total value. A fee appraiser can estimate the value of full bathroom in a house in a few ways. They can gather evidence from builders regarding the cost to install a full bath in a house that is under construction. They can survey real estate agents to get their impression of what a full bath is worth in a particular market.
In this guide, you will learn:
Tax assessors typically start with a cost approach to value and then alter the generated values using the sales from the neighborhood. You should have a basic understanding of how this works!
Daniel Thomas Jones is the managing director of Fair Assessments, LLC
Dan is a valuation professional with expertise in reducing property taxes for real property owners and tenants. Prior experience includes working for two county property tax assessment departments. He was a commercial and residential manager for the Fulton County Board of Tax Assessors, Atlanta, Georgia. His specialized knowledge of the strengths and weaknesses of the mass appraisal property tax process, as well as the ability to relate to the county appraisal staff ensures excellent results for your property tax appeal.
Why should I appeal my tax assessment?
The mass appraisal process used by the tax assessors is unreliable and there is often room for adjustment. Additionally, in Georgia, settling your property tax appeal at a formal hearing caps your taxable value for three years. You may want to do this even if you think the assessor’s market value estimate is reasonable.
Will the county hold this against me?
No the tax assessment appeal process is written in the tax laws of the state and is a right that all taxpayers have. Many people have good reasons to appeal their value and the tax assessment staff understand this.