Identification: This is the location of the property. This may be accomplished
in a number of ways for real property. The street address, and Assessor's parcel
number, or a legal description of the property are all commonly used.
Determination of Property Rights: In most cases, appraisals include the valuation
of all the rights associated with ownership. However, if a property has multiple
owners, that information will be important in efforts to assess and collect taxes.
If certain rights have been sold or assigned to others, the remaining value of the
property may be reduced. For example, an easement to permit foot traffic across
a commercial plot may limit the kinds of improvements that may be placed on that
lot, and thus reduce the value. The terms of leases allowing development of mineral
or air rights may effectively prevent other uses during the lease period and also
result in a reduction of value.
Date of the Appraisal: The value of real property fluctuates continually
because physical condition, economic factors, and market factors continually change.
A property may be severely damaged or totally destroyed by fire or flood. Therefore,
an appraisal is only good for a specific date. To maintain a proper and equitable
distribution of the tax burden, a current estimate of market value is always the