Property Appraisals
The Board of Assessors does not create property values. The assessors and appraisers only monitor the markets and interpret what buyers and seller have established as the Market Value. The appraised value is simply an estimate of what the property is worth. Finding the Market Value of your property involves discovering the price a typical buyer would pay for the property in its present conditions. This is no simple task for the appraisal staff because they have to estimate the value of each piece of property, no matter how big or small, which is located in Floyd County. But the appraiser's job doesn't stop here. Each year it has to be done again because Market Value changes from one year to the next.
Appraisers rely on the property owner for accurate information. It is impossible for the staff appraisers to visit each property while the owners are at home. It is very important that each property owner review the Assessors' records to make sure the information is correct. If you do not agree with the value placed on your property, you may visit our office to discuss the matter. The appraisal staff will be glad to answer any questions about the appraisal and explain how to appeal if you cannot come to an agreement. If you feel your taxes are too high, you should make your opinion known to the proper taxing authority, not the Assessors' Office. The assessors do not set the tax rates which determines the amount of taxes. When visiting the Assessors' Office or Tax Commissioner's Office, please ask about your eligibility for special exemptions. The Assessors, the Tax Commissioner and their staff want to make sure you are receiving all applicable exemptions so you are only paying the proper amount of taxes. Please allow these offices to answer any questions you may have.
Appraisal Methods
The appraisal staff keeps track of property ownership by receiving copies of all deeds filed in Floyd County. As property sells, they are able to keep current ownership information, tract sizes, and sale prices of property sold.The appraisers must first know what the property to be appraised consists of in order to find the Fair Market Value. The appraisal staff has, in the past, visited, reviewed and updated every parcel of property in Floyd County and has gathered data concerning land features, size, zoning, and deed restrictions. If the property is improved, all improvements are measured and information is gathered that will assist the appraiser in determining the value of improvements. The appraisal staff maintains a scaled drawing of each structure located in Floyd County and through the review of building permits and information supplied by taxpayers, conducts field reviews to update construction data as warranted. Using the above factors, as well as the appraiser's knowledge of the Real Estate Market, the appraiser can estimate the Market Value using three different approaches to value:
- the Cost approach
- the Sales Comparison approach
- the Income approach
The appraiser may use one, two or all three in arriving at the Market Value of a piece of property. The Cost approach uses actual replacement cost of the building, less deprecation, plus the value of land. The Sales Comparison approach involves analyzing sales of similar properties to predict the likely selling price of unsold properties. The Income approach is used for income producing properties. It involves capitalizing the net income to arrive at a probably selling price for the property.
Value Changes
The value of property changes because of structural or market conditions. When this happens, the Fair Market Value used by the Assessor's Office also changes. The change could be an increase or decrease in value due to the circumstances.
For instance, additions of rooms to your home or improved market factors would certainly increase your appraised value. Removal of structures, or if your property had not been maintained over a period of time and the roof was falling in or declining market factors would decrease your appraised value. The appraiser has not created this value change. People, property owners, create value by their transactions in the market place. The appraiser simply reflects what buyers and sellers in the marketplace tell him/her the property is worth.
