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IS OR CAN A AD VALOREM TAX ASSESSMENT BE CONSIDERED AN......

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Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
APPRAISAL?

I WAS READING AN EDITORIAL IN THE NEWSPAPER LAST NIGHT REGARDING THE HIGH LOCAL REAL ESTATE TAXES. IN REFERING TO THE CURRENT COUNTY ASSESSMENT, THIS WRITER REFERRED TO THE ASSESSMENT AS AN APPRAISAL.

IN THIS COUNTY THE METHOD OF ASSESSING IS A MATHEMATICAL MODEL.

THIS POST SOMEWHAT TIES TO PAM'S THREAD ON WHAT IS AN APPRAISAL, AND DEALS WITH THE NECESSSITY FOR STATES TO CLEARLY DEFINE "APPRAISAL" FOR THE PUBLIC.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I agree, they do the same thing in GA. "The tax office has my house appraised at $X". :x No, it's not appraised, it's assessed by a math model.
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
It is an appraisal only if it complies with Standard 6, 1-8
 
A

Anonymous

Guest
In New Jersey a tax assessment is supposed to be based on an appraisal. Of course assessors almost never perform appraisals, they don't have enough time so our appeals process allows the property owner to present an appraisal which is considered by the assessor and the county tax board. In my experience as an appraiser and assessor this is fair and as accurate as can be expected.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Down here, while they call it an "appraisal", it is a mass evaluation and they readily acknowledge that it is not an appraisal. It's strictly a method to get the most feathers out of the goose with the least amount of squaking. The powerful are under-valued while the peons are over-valued.

Roger
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Assessors do appraisals. Std 6 basically says do what you are doing, whatever it is. Annual adjustments may or may not reflect "appraisals" which are Mass Produced (mass appraisal). Ratio studies are supposedly used to adjust values between re-assessments. Ark. has a 3 year cycle, Colorado has a two year cycle. Changes between reassessments are not mass appraisals. Most assessors do mostly cost related appraisals using (in theory) sales data to estimate depreciation hence back into to a "market comparison" approach. Only under appeal will the assessor take time to find real comparables...or not so real ones. My girl friend has a turn of century house that is constantly jacked up from year to year and year to year we return to the Board and get it lowered. This year the comparables were respectively 1, 2, and 2 years old in the same subdivision (very old one, where old houses are being demolished to make way for new and most of the new are finished in a quasi-victorian style. Very UNcomparable in condition, insulation, heat system (her's still has old steam heaters.) etc.

Rstrahan wrote
The powerful are under-valued while the peons are over-valued.

exact a mondo. A statistical aberration if nothing else. every ratio study done demonstrates this factor. Everything gets bunched towards the mean of the sales.

Another flaw is found in older FHA financed homes and how they affect other homes nearby. Most sales of FHA houses will require everything to be in good repair, which in older homes is not the norm. Cost to cure may vary from $3000 - $10,000 typically....These sales reflect FHA financed homes which are in GOOD condition, fixed up, new roof, etc. while the average home nearby is likely to have any number of defects, like soft floors, leaking faucets, broken glass, subpar appliances and floor covering, needs updating and painting, etc. These homes are over-assessed using FHA sales for comps because they are not in that good condition that is necessary before a HUD sale executes.
 

Craig Sewell

Freshman Member
Joined
Feb 6, 2002
I think the public often confuses their assessment with an appraisal. In as much as the County tells them their house has a value of _____ dollars, it is an appraisal. If only a mass appraisal. On another note, I often use the assessment of the subject and comps in my reports. I calculate a sale price/assessment ratio for the comps and in most cases, the indicated value of the subject and it's assessment ratio falls within the sale price/assessment ratio of the comps. This is yet another way to determine if the indicated value is in a reasonable value range compared to the comparable sales.
 

Dave Doering

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
Back to the original question of this thread, regardless of the methodology utilized and IMHO whether it conforms to Standard 6, if the result of the assessment process ends in "an opinion of value" it is an appraisal.

However, whether it is adequately supported in the market and relevant for any use, even its original intended use, is dependent upon the quality and quantity of the data analyzed as well as the methods and procedures utilized to arrive at the value. Further, its reliability for other uses is limited by the scope of the appraisal process.
 

Tom Brown

Freshman Member
Joined
Jan 16, 2003
Professional Status
Certified General Appraiser
State
Kansas
:evil: This is my first ever post and I will try not to bore or snore!!
(too much, anyway)

I am one of those County Appraiser types (we do assessment work) who relies on mass appraisal techniques to value a large number of property each year.

In Kansas, our albatross is annual valuation with market value as a target. The sales to assessment ratio is our annual 'grade card' with IAAO standards statutorily held to our feet.

Every jurisdiction has different requirements and technologies available as you go around these 50 states and I venture to guess, a large number of the assessment districts do not do actual appraisal work as we find it under USPAP.

:lol: or 8) as the case may be
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Verne,
Yes, a mass appraisal and a single-poperty appraisal are both appraisals.
 
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