1. Three Approaches To Value On Your Property Record Card John Burgiss, RES Forsyth County Tax Assessor/Collector Email: burgisjt@forsyth.ccburgisjt@forsyth.cc Telephone: 336.703.2301

2. Presentation Agenda  Why are the three approaches to value important in mass appraisal?  Forsyth County Valuation History  Where should the valuation data be displayed?  Examples of valuation data display  Successes and Improvements  Questions and Comments

3. Why Are The Three Approaches Important?  Generally Accepted Appraisal Theory  NC General Statutes  Court Decisions/Other Rulings  Public Relations

4. Generally Accepted Appraisal Theory  “Since about 1910, three approaches to estimating market value have been evident in the literature of appraisal: sales comparison, cost, and income. All have been refined through the years…” Property Appraisal and Assessment Administration, 1990, Page 82

5. NC General Statutes  GS 105-283. Uniform Appraisal Standards – “All property… shall…be appraised or valued at its true value in money.”  GS 105-317(a)(1),(2). Appraisal of Real Property – adaptability of property uses, past income, probable future income, cost, etc.

6. Court Decisions/Other Rulings  Belk-Broome emphasizes the income approach as the primary appraisal method for appraising income producing properties.  Greensboro Office Partnership points toward the use of market rents in determining the value of an income producing property.  Philip Morris USA discusses the appropriateness of a certain cost approach method.

7. Court Decisions/Other Rulings  Blue Ridge Mall 08 PTC 026

8. Public Relations  Appraisal Accuracy  Appraisal Competency  Appraisal Efficiency  Appraisal Transparency

9. Forsyth County Valuation History  Forsyth County started conducting “In- House” revaluations in 1988.  Revaluation Dates: 1988, 1993, 1997, 2001, 2005, 2009,  2013  First published Income Approach guide produced for the 1976 Revaluation  First published Income Section in the Schedule of Values for the 1997 Reval  Cost/Market “Hybrid” Approach for Residential Properties

10. Valuation Approaches - Display  Schedule Of Values, Standards and Rules  Property Record Card ..in the interest of full disclosure>>  The Internet

11. Commercial Property – Income Approach

12. Primary valuation approach identified

17. Residential Property – Three Approaches

22. Successes and Improvements  Public Compliments  Clarity of page 1 valuation summary  Commercial Sales Comparison  Card print speed for large commercial properties  Few minor display bugs

23. Questions??? Comments??? **Thank You**

24. Additional Property Record Card  Attached is an example of a property containing an income producing commercial property and a single family dwelling. Two approaches used; total value brought together on the Income Approach.

27. Added in value of res structure and estimated land value

33. Valuation Approach – Data Display