1/26/2024 0 Comments Butler county sheriff pregnant![]() ![]() The income approach is the most complex of the three approaches because of the research, information and analysis necessary for an accurate estimate of value. In other words, the amount another investor would give for your property in order to gain its income. In that case, your property could be valued according to its ability to produce income under prudent management. It is used if your property produces income such as an apartment or office building. To estimate the market value of your property, the Assessor generally uses three approaches. How does the Assessor estimate market value? This is sometimes referred to as the ""arms length transaction"" or ""willing buyer/willing seller"" concept. Market value of a property is an estimate of the price that it would sell for on the open market on the first day of January of the year of assessment. Changes in market value as indicated by research, sales ratio studies and analysis of local conditions as well as economic trends both in and outside the construction industry are used in determining your assessment. The current law requires the reassessment to occur in odd numbered years. "State law requires that all real property be reassessed every two years. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject property being appraised since errors or inaccurate information can seriously affect the final estimate of value." ![]() Value of the land is added to arrive at an estimate of the total property value If the event improvement is not new, appropriate amounts for depreciation and obsolescence is deducted from replacement value. The second approach is the COST APPROACH and is an estimate of how many dollars at current labor and material prices it would take to replace your property with one similar to it. This method is generally referred to as the MARKET APPROACH and is usually considered the most important in determining the value of residential property. The Assessor also uses sales ratio studies to determine the general level of assessment in a community in order to adjust for local conditions. Local conditions peculiar to your property are taken into consideration. The first approach is to find properties that are comparable to yours which have sold recently. ![]() This is sometimes referred to as the "arms length transaction" or "willing buyer/willing seller" concept. "Market value of a property is an estimate of the price that it would sell for on the open market on the first day of January of the year of assessment. ![]()
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