Frequently Asked Questions: Appraisals

Q: How is property appraised?
A: In valuing all real estate, except farmland, the assessor uses one or more of the three acceptable appraisal approaches to determine value, whichever is most appropriate for the property being assessed. The three approaches are 1) The Market (Sales Comparison) Approach, 2) the Cost Approach, and 3) the Income Approach.

Q: How often do you reappraise my property?
A: Typically, the appraisal district reviews all sales information and reviews all properties every year. Market value is the determining factor on deciding which properties are reappraised.

Q: How does the appraisal district determine the value of a home?
A: The appraisal district compares a home to similar homes that have sold recently and determines the value accordingly.

Q: Why is IMPROVEMENT shown on my notice when I haven't made any?
A: Improvement on your notice means any structure that is attached to the land. A house is an improvement to the land.

Q: Has anyone actually come out and looked at my property?
A: Yes, someone has reviewed your property, but it may not have been this year.

Q: Are property taxes based on a percenatge?
A: No, they are based on $100 of the fair market value of your property.

Q: My house is 30 years old. Is that taken into consideration?
A: Yes. Age, size, condition and quality of construction are all taken into consideration.

Q: Is my house ever depreciated?
A: Yes, but the increase in the fair market value may over ride the depreciation due to age.

Q: How do you arrive at a value on a house?
A: The house is measured, classified, and depreciated due to its condition, and age. It is valued based on the sales of similar properties.

Q: My house was not finished on January 1, how do you appraise it?
A: The improvement is added to the tax roll at the percent of completion as of January 1.

Q: What if I own a mobile home but not the land?
A: We need a request for separate taxation filed with our office. This will allow the appraisal district to set the mobile home up on an improvement only account that does not have a land value.

Q: What discounts does NCAD use on property?
A: We using the following discounts: Physical, Economic, Functional, Area Factor, and % Good.