Three Approaches To Value On Your Property Record Card

1. Three Approaches To Value On Your Property Record Card John Burgiss, RES Forsyth County Tax Assessor/Collector Email: burgisjt@forsyth.cc Telephone: 336.703.2301

2. 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

3. Why Are The Three Approaches Important? • Generally Accepted Appraisal Theory • NC General Statutes • Court Decisions/Other Rulings • Public Relations

4. 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

5. 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.

6. 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.

7. Court Decisions/Other Rulings • Blue Ridge Mall 08 PTC 026

8. Public Relations • Appraisal Accuracy • Appraisal Competency • Appraisal Efficiency • Appraisal Transparency

9. 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

10. Valuation Approaches - Display • Schedule Of Values, Standards and Rules • Property Record Card • ..in the interest of full disclosure>> • The Internet

11. Commercial Property – Income Approach

12. Primary valuation approach identified

17. Residential Property – Three Approaches

22. 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

23. Questions??? Comments??? **Thank You**

24. 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.

27. Added in value of res structure and estimated land value

33. Valuation Approach – Data Display