How Property is Appraised
The County Appraiser is responsible for discovering, listing and valuing all property within Clay County. Each year the Appraiser must review recent real estate sales and consider local economic conditions in determining the "fair market value" of the property, at it exists January 1st. Fair market value is the amount an informed buyer is willing to pay and the amount an informed seller is willing to take for a property in an open market, without undue influences.
The three methods of arriving at the appraised value are the sales approach to value, the cost approach to value and the income approach to value. Regardless of the approach to value utilized, the outcome reflects the market value of the property on the 1st of January of each year.
Sales Approach to Value
The sales approach includes the reviewing of sales of similar properties and making adjustments for the differences between the property that sold and the property that is being appraised.
Cost Approach to Value
The cost approach includes determining the replacement cost new of a structure less depreciation.
Income Approach to Value
Best suited for valuation of commercial properties, apartments, storage units, and other properties where the occupant of the building pays rental fees, either for the entire structure or a specific area of the structure.