DALLAS-Commercial property appraisals are outand many owners who saw an increase in values are asking themselveshow these valuations came to be. If you're one ofthose owners questioning this year's numbers, considerthis—appraisal districts face the impossible task of valuing everypiece of real estate and business personal property. Even if thevaluation cycles are not every year, this almost is an impossibletask. Below are just some of the reasons valuations can provedifficult and even yield incorrect values:

Volume: Appraisal districts are responsible forvaluing tens and at times hundreds of thousands of properties eachyear, and this isn't restricted to one type of property or industryniche. Appraisal districts are required to be the “expert” on alltypes of property including commercial, residential and businesspersonal property whether they are familiar with that particularmarket or not.

Limited Funding: With insufficient staffing inappraisal district offices, ratios are usually in the thousands perone appraiser yielding a near impossible workload that is often metwith a “cookie-cutter” valuation approach. Limited funding alsotranslates to recruiting challenges—both new hire and retention—notto mention, fewer senior staff members who have “real world”experience on valuations/acquisitions. With limited staffing andHR, many jurisdictions rely heavily on IT capabilities, butunfortunately a lack of funding often means IT budgets are not onpar with the task at hand.

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