Getting Behind Appraisal District Methodology

DALLAS-Commercial property appraisals are out and many owners who saw an increase in values are asking themselves how these valuations came to be. If you’re one of those owners questioning this year’s numbers, consider this—appraisal districts face the impossible task of valuing every piece of real estate and business personal property. Even if the valuation cycles are not every year, this almost is an impossible task. Below are just some of the reasons valuations can prove difficult and even yield incorrect values:

Volume: Appraisal districts are responsible for valuing tens and at times hundreds of thousands of properties each year, and this isn’t restricted to one type of property or industry niche. Appraisal districts are required to be the “expert” on all types of property including commercial, residential and business personal property whether they are familiar with that particular market or not.