What are the appraisal methods?
Market Approach - The market approach is the most direct method of appraisal. Sales of similar properties are compared to subject properties to establish a value estimate. Market value is the most probable price expressed in terms of money that a property would bring if exposed for sale in the open market in an arm’s length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which the property is adapted and for which it is capable of being used.

Cost Approach - The cost approach estimates the material and labor costs to replace a building with a similar one. If the building is not new, the appraiser must consider its age and how much it has depreciated over time.

Income Approach - The income approach may be considered for income producing properties. This method considers the landlord’s income and operating expenses, and the financial return most people would expect from a given type of investment property.

Show All Answers

1. How are property taxes determined?
2. What is a mill levy?
3. What is an assessment rate?
4. When will I receive a Notice of Valuation and what information does it contain?
5. How is the actual value determined?
6. What are the appraisal methods?
7. What is time adjustment?
8. What is the land distribution in Grand County?