Market Approach - to find properties that are comparable to the subject property and that have recently sold. Local conditions peculiar to the subject property are then considered. In order to adjust for local conditions, the Assessor also uses sales ratio studies to determine the general level of assessment in a community. This method is usually considered the most important in determining the value of residential property.
Cost Approach - an estimate of how many dollars at current labor and material prices it would take to replace a property with one similar to it. In the event the improvement is not new, appropriate amounts of depreciation and obsolescence are deducted from replacement value. Value of the land is added to arrive at an estimate of total property value.
Income Approach - used if the property produces income. It could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information and analysis necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject property being appraised since errors or inaccurate information can seriously affect the final estimate of value.
Agricultural Property- Agricultural real property assessments are based on productivity and net earning capacity through the productivity formula and not market value. The productivity formula is comprised of a five year rolling average of, among other factors, crop yields, commodity prices and expenses at a county level. A dollar value per CSR (Corn Suitability Rating) point is determined and applied to every agricultural parcel in the county equally.