How do I find out which appraisal method was used on my property?
The best way to determine what appraisal method was used on your property is to ask the person who performed the appraisal. If the appraisal was done for income tax purposes, you can call the assessor's office in your county and ask what appraisal method was used. An appraiser’s job is to examine your property in terms of size, location and function, and assign it a value. That value may be used for different purposes, including tax, insurance, or sale purposes. There are different home appraisal methods that are used in the assessment process, and each method may yield different results and be appropriate for different situations.
The market method is actually an estimation of what your property might be able to sell for on the open market in relation to other properties similar to yours that have sold recently. The differences between your property and the others are calculated and given a value either to your benefit or your detriment, depending on what the differences are.
The income approach is an appraisal used for rental purposes when your property is intended for use as a rental property. This assessment is also based on what other properties similar to yours are currently being rented for in the area. Whereas, the cost method is the appraisal given to your property that reflects what would be a fair market value price if you were to place your property on the market at that point in time. This appraisal takes into account the size and function of any standing structures on your property and assigns an overall value to the whole of your property.
These, or other appraisal methods, may have been used on your property. If you believe an appraisal of your property was performed unfairly for tax purposes, it's in your best interest to contact a lawyer for help with filing an appeal.