Appraisal Process

How does the appraisal process work?

When a parcel of land is created, sales of similar properties are reviewed to determine the correct land value. When a building permit is issued on a parcel, one of our appraisers will visit the property to value the improvements. At least once every three years one of our appraisers will inspect your property to verify the information on the property record card. In addition, sales of the area will be reviewed at least once every three years to determine if there has been a change in the market value

How is the market value determined?

Market value is how much a property would sell for, in an open market, under normal conditions. Market value is determined by analyzing the sales of similar properties, the cost to reproduce the property and the ability of the property to earn income.

How are properties appraised?

Dixie County uses the same appraisal techniques normally used by independent fee appraisers. These are the Cost Approach, Sales Comparison Approach and Income Approach.

COST APPROACH - The principle of substitution is basic to the cost approach. This principle affirms that no prudent buyer would pay more for a property than the cost to acquire a similar site and construct improvements of equal desirability and utility without undue delay. Information pertaining to cost is acquired from builders, cost information services and from market abstraction. If the property is not new, the appraiser must estimate depreciation and deduct it from replacement cost new.

SALES COMPARISON APPROACH - This approach is the process in which a market value estimate is derived by analyzing the market for sales of similar properties and comparing these properties to the subject. Sales of similar properties must be carefully analyzed to make sure that no adverse conditions existed that would affect the purchase price. Once this is determined we can estimate value of the subject property.

INCOME APPROACH - This is approach is a unique method to evaluate property, usually commercial property. It requires a study of how much revenue the property would produce if rented. From the gross estimated revenue the appraiser would adjust for losses and expenses. The net estimated income would then be converted into an indication of value by a mathematical process called "capitalization."