We make every attempt to keep our assessments fair and equitable, so consistency is important. There are valuation techniques used when assessing properties.
Residential Property
Residential Property is valued by the Sales Comparison approach.
In this approach, sales of local and regional properties in Albemarle County are used to create a model that accounts for differences in quality, finish, amenities, size and style of improvements, as well as site influences such as view, topography and location. While the model is calibrated with property sales, it is used to determine the assessed value of all properties. This is referred to as Mass Appraisal and is the standard method for assessing properties throughout the Commonwealth.
Commercial Property
Commercial Property valuation uses all three valuation techniques below.
Our appraisal staff researches and analyzes residential and local commercial sales information each year to better calibrate our assessment model. Commercial Income and Expense Survey Forms are sent each year, so we can have better assessments through actual market data.
Commercial Income and Expense Survey Forms are sent out by July 1 and should be returned by October 1.
Sales Comparison
This is also referred to as the market approach. This technique considers sales of comparable properties while adjusting for their differences. This approach is always used to develop land values and is used to calibrate and confirm the income and cost approaches. This is an easy to understand approach and a reliable indicator of market value, but often there is limited data for unique properties.
Income Approach
The income approach is determined by analyzing actual and market rent and typical expenses and applying a market capitalization rate. This approach provides a value based on net operating income and typically gives the most weight on income producing properties like apartments, multi-tenant offices, and hotels.
Cost Approach
The cost approach (cost less depreciation) is a recognized method in our commercial assessments. This approach is effective in being systematic and uniform and in determining separate values for land and buildings.