Jo Ann North

Property Assessor

I WANT TO ..

• Look at your file data on my property

• Estimate my property taxes

• Learn how the appraisal processes work

• Read about Business Personalty Assessment

• Find a parcel on Metro's online property maps

• Go to Metro Nashville Government's Home Page

Property Appraisal for Tax Purposes

In determining your property appraisal, this office uses acceptable appraisal methods approved by the State Comptroller's Office to estimate the value of each property.  Because there are many properties that need to be appraised as of January 1 in the year of a reappraisal, we use mass appraisal techniques aided by appraisal models of benchmark properties.  The models are developed by our staff and processed by computers into value indications for each property within the county.  This process enables us to produce statistically accurate values cost effectively during the revaluation phase of a reappraisal program.

The primary way the appraisal models are developed is by analyzing comparable properties within individual neighborhoods and comparing them to the actual sale prices.  To accomplish this, we access thousands of sales recorded each year in the Register of Deeds office.  A database of sales is developed that enables us to compare the properties as indicated above and develop the appraisal models more accurately.

By analyzing the sale prices for other properties and making adjustments for differences (such as size, age, condition, location and other factors), the appraiser can develop a more accurate indication of value for your property.  This method is particularly effective in the appraisal of residential property where numerous sales exist in most neighborhoods.

In developing market value estimates the assessor examines many of the same factors as if you were to put your property up for sale.  In placing your home on the market, what process would you go through to ensure you received the most probable price for your property?  Like you, the assessor examines the sale prices of comparable properties and compares them to the location, size (land and building), type of construction, and condition as they relate to your property.  The resulting value is an indication of the most probable price your property would bring on the market.  This process is known as the comparable sales approach to value.

In addition to sales received from the Register of Deeds, we access a database of building permits issued by the Department of Codes Administration.  This enables us to track improvements to your property and view the cost as indicated on the permits.  Through appraisal models we are able to determine current building costs and estimate a replacement cost new of the improvements located on your property.  After  determining the proper allowances for depreciation we can develop an indication of the value by the cost approach.

In addition to the other approaches to value described above; when valuing commercial and industrial properties the assessor analyzes the income producing capability of the property and develops values indicated by the income approach.  Many of these properties are purchased for their ability to produce income.  The appraiser analyzes comparable properties, such as offices, apartments, warehouses, retail stores, etc. and develops net income estimates.  The net income is capitalized into an indication of value by dividing it by a capitalization rate that represents a return on and return of the investment as determined by the marketplace.

The last phase of any valuation assignment is single property appraisal by an appraiser and is known as the reconciliation of values.  When two or more approaches to value indications are produced on a property the appraiser examines the strengths and weaknesses of each approach and selects a value from among the approaches that has the best and most accurate information.

In mass appraisal, the assessor uses appraisal statistics to determine the approach that produces the most reliable value indication.  Uniformity of appraisals is measured within groups and between groups of properties.  Statistical standards recommended by the state Division of Property Assessments and approved by the State Board of Equalization must be met or exceeded by this office before the reappraisal program is approved.