Residential Property Valuation
The main residential valuation model used by Campbell County is the market approach. Homes are valued based on what an average person would be willing to pay for a similar property. This data is derived by looking at current sales in the county. Every attempt is made to use sales that have the same characteristics as the property to be valued (subject property). These would include but are not limited too; area, number of bedrooms, baths etc., if it has a garage, etc. If a subject property doesn’t have enough matching sales, adjustments are made to the sale properties most closely resembling that property to create a more equitable value. An example of this would be; if the sale property had a garage and the subject didn’t the sale price would be adjusted to reflect not having a garage.
We collect sales data through statements of consideration. This is a form that is filled out at the end of a sale showing sale price, type of sale, mortgage information, and more. We verify these to be sure they are a valid sale, in other words a sale at fair market value by the definition: The amount of money a well-informed buyer would pay and a well-informed seller would accept for property that has been on the open market for a reasonable amount of time, assuming neither buyer nor seller is acting under pressure. When a sale is deemed valid it can be used to help determine fair market value for other similar properties. The goal is to value all properties fairly and equally, while being as close to fair market value as possible.
A Computer Assisted Mass Appraisal System (CAMA) is used in Campbell County for residential appraisal. We are able to store sales data on it and run sales ratio studies. It is also a cost system consisting of an appraisal program supported by state enhancements. Property characteristics are collected by field appraisers and entered into the system. This data generates a Replacement Cost New (RCN). With the entry of the year of construction, effective age, and condition a Replacement Cost New Less Depreciation (RCNLD) is developed on each property in the county. Property record cards are maintained on property, these list specific information and including a basic sketch of the house and attachments. Information on other miscellaneous outbuildings and pictures of the property are included. We do use the RCNLD itself to value some residential and commercial properties. This is the cost approach to valuation.
Campbell County has been divided into appraisal neighborhoods of similar properties by the assessor’s office to aid in developing fair and equitable market values. In the process of developing a market value for each property as of January 1 of a given year, sales information for an area is analyzed to develop adjustments that must be applied to properties to bring them to current market value. One of the first and most important areas of consideration are properties within a geographical neighborhood and their relative sales ratios. This is because the neighborhoods have been developed on location, economic forces, governmental and social factors, and boundaries that group properties with similarities. Within neighborhoods other considerations may be age, type of construction, etc. Through the use of computer programs, information gained from properties that have recently sold can be used on properties not recently sold to achieve fair market value for all properties.
End of Year Assessment
By the end of April of each year assessment schedules are mailed to each property owner listing the estimated market value, assessment, the previous year’s tax, and estimated tax for the current year using the previous year’s mill levy. The previous year’s information will not be listed on properties that have had changes in legal description or if they did not exist in the previous year (newly platted). Property owners have the right to appeal the values placed on their property; however the appeal must be filed within 30 days of the assessment mail date. For more information on this see the Appeals Section or contact our office.