Before assessing any parcel of property, the appraiser estimates its market value. Market value is how much a property would sell for, in an open market, under normal conditions. To estimate market values, the appraiser must be familiar with all aspects of the local real estate market. Information such as sales prices, construction and repair costs, normal operating expenses, typical rents, and current financing charges are all considered. Mass appraisal is a complicated process. We consider three approaches to value when preparing the tax roll. First, similar properties' sales prices are compared, using only sales where the buyer and seller both acted without undue pressure. This method is called the sales comparison approach and is normally given greatest consideration when valuing residential properties. The second method is to calculate what it would cost, using today's labor and material prices, to replace the structure with a similar one. If the structure is not new, the appraiser estimates how much it has depreciated since it was built. The resulting value is added to an estimate of the market value of the land. This method is called the cost approach. The third method is to analyze market rental occupancy rates, vacancy and collection allowances, and operating expenses to estimate what an income-producing property should earn. This net operating income is factored to estimate value. This method is called the income approach. Appraisers may reconcile two or more of the value indications into a final value based on the appropriateness, accuracy, and quantity of market information from the three approaches. This is known as a reconciled value. With today's technology, appraisers can estimate values using these three approaches more efficiently than with paper, pencil, and calculator. Computer Assisted Mass Appraisal (CAMA) techniques are used to analyze sales and estimate values for many properties at once. Once the appraiser estimates the market value of a property, its assessment is calculated. Florida law provides that all property be assessed as of January 1 each year at 100 percent of market value less the cost of the sale. What are the Property Appraiser's Duties? Return to the Property Appraiser's Home Page