2007_Schedule_Revaluation_Manual
ScheduleofValues,Standards,andRules
2007RevaluationManual
New Hanover County, North Carolina
Effective January 1, 2007
Preface
The intent of the property revaluation program is to readjust the appraised values of real property
so that values are brought into line with ?true market value? as of January 1, 2007. The Tax
Administrator?s office estimates market value by accumulating descriptive data of the real
property in our county and by studying the property transactions in our county. The goal of this
effort is to uniformly estimate property values in an efficient manner.
Although the resulting estimates of value for each property will be used later in calculation of
property tax, at this point the sole responsibility of the Tax Administrator and his appraisal staff
is to reasonably approach and estimate the most probable total selling price for all parcels.
Also at this point, the property owner should acknowledge only that the Tax Administrator did,
or did not, reasonably estimate the approximate market value for the property. The appraisal
staff will be available to informally discuss any concerns a property owner may have prior to the
meeting of the . A general provision, set out by Statute 105-
Board of Equalization and Review
394, states that ?Immaterial irregularities in the listing, appraisal, or assessment of property for
taxation ... or in any other proceeding or requirement of this subchapter shall not invalidate the
tax imposed upon any property or any process of listing, appraisal, assessments, levy, collection,
or any other proceeding under this Subchapter.?
All real estate appraisal work in the United States must be accomplished in compliance with the
. USPAP , which governs real
Uniform Standards of Professional Appraisal PracticeStandard 6
estate appraisal practice for tax purposes, together with the Tax Administrator?s
ad valorem
statements of compliance, compose the main body of this .
2007 Schedule of Values
Rules governing the listing, appraisal and assessment of real property for taxation are set out in
Subchapter II of Chapter 105 of the General Statutes of North Carolina. These rules are
collectively referred to as. Some important excerpts of
The Machinery Act of North Carolina
current statutes which directly apply to this manual are reprinted in Appendix 1.
To assist property owners, employees, and administrative interest in understanding and applying
assessment standards, this manual of values, standards, and rules is required. Appendices 2
through 6 contain the detail that the Tax Administrator needs to comply with .
Standard 6
Table of Contents
Authorization and Standards.....................................................1
Uniform Standards of Professional Appraisal Practice (USPAP), Standard 6.........1
USPAP Departure Rule...................................................1
USPAP Standards Rule 6-1: Mass Appraisal Development...........................2
Compliance with Standards Rule 6-1........................................2
USPAP Standards Rule 6-2: Specific Appraisal Requirements........................3
Compliance with Standards Rule 6-2........................................4
Assumptions, Limiting, and Hypothetical Conditions............................5
USPAP Standards Rule 6-3: Methods and Techniques Employed......................7
Compliance with Standards Rule 6-3........................................7
USPAP Standards Rule 6-4: Cost, Market, Income Approaches.......................8
Compliance with Standards Rule 6-4........................................8
USPAP Standards Rule 6-5: Calibrating a Mass Appraisal...........................10
Compliance with Standards Rule 6-5.......................................10
USPAP Standards Rule 6-6: Reconciling a Mass Appraisal..........................12
Compliance with Standards Rule 6-6.......................................12
USPAP Standards Rule 6-7: Written Reports......................................13
Compliance with Standards Rule 6-7.......................................14
USPAP Standards Rule 6-8: Signed Appraiser?s Certification........................16
Compliance with Standards Rule 6-8.......................................16
Appraiser?s Certification.................................................17
Appendix 1 - Applicable North Carolina Law
Appendix 2 - Glossary
Appendix 3 - Computer Assisted Mass Appraisal (CAMA) Modules
Appendix 4 - Appraisal Attribute Code Definitions and Business Rules
Appendix 5 - Detailed Components of the Schedule of Values
Appendix 6 - Scope of Work and Timetable
2007 Schedule of ValuesPage 1
Authorization and Standards
Introduction
The January 1, 2007 revaluation of New Hanover County, North Carolina, is conducted under the
rules and regulations of:
(1)applicable(N.C.G.S.); and
North Carolina General Statute
(2)the(USPAP)
National Uniform Standards of Professional Appraisal Practice, Standard 6
as promulgated by (authorized by the as the
U.S. Congress
The Appraisal Foundation
source of );
Appraisal Standards and Appraiser Qualifications
(3)the, (DOR).
North Carolina Department of RevenueProperty Tax Division
The purpose of thisand is to document appraisal schedules,
Schedule of Values Addenda
standards, rules, and ?computer assisted mass appraisal? (CAMA) software used by the New
Hanover County Tax Department meet N.C.G.S., USPAP, and DOR requirements in the 2007
revaluation..
This Document is inextricably linked to all other required tasks, pieces, and parts
Uniform Standards of Professional Appraisal Practice (USPAP), Standard 6
?In developing a mass appraisal, an appraiser must be aware of, understand, and correctly employ
those recognized methods and techniques necessary to produce and communicate credible mass
appraisals.?
USPAP Departure Rule
?This Rule permits exceptions from sections of the that are classified as
Uniform Standards
specific requirements rather than binding requirements. The burden of proof is on the appraiser
to decide before accepting an assignment and invoking this Rule that the scope of work applied
will result in opinions or conclusions that are credible. The burden of disclosure is also on the
appraiser to report any departures from specific requirements.
?An appraiser may enter into an agreement to perform an assignment in which the scope of work
is less than, or different from, the work that would otherwise be required by the specific
requirements, provided that prior to entering into such an agreement:
?1.the appraiser has determined that the appraisal process to be performed is not so limited that
the results of the assignment are no longer credible;
?2.the appraiser has advised the client that the assignment calls for something less than, or
different from, the work required by the specific requirements and that the report will clearly
identify and explain the departure(s); and
?3.the client has agreed that the performance of a limited appraisal service would be appropriate,
given the intended use.?
Page 2New Hanover County Tax Office
USPAP Standards Rule 6-1: Mass Appraisal Development
?(This Standards Rule contains binding requirements from which departure is not permitted.)
?In developing a mass appraisal, an appraiser must:
?(a)be aware of, understand, and correctly employ those recognized methods and techniques
necessary to produce a credible mass appraisal.
?(b)not commit a substantial error of omission or commission that significantly affects a mass
appraisal; and
?(c)not render a mass appraisal in a careless or negligent manner.?
Compliance with Standards Rule 6-1 (Departure Not Permitted)
Mass appraisal provides a systematic approach and
(6)(1)(a)Methods and Techniques.
uniform application of appraisal methods and techniques to obtain estimates of value
that allow for statistical review and analysis of results. The appraisal staff attends
continuing education classes to keep abreast of methods and techniques.
From time to time the Tax Administrator of New Hanover County may deem it necessary to
add one or another code or appraisal policy (expressed as a business rule) contained in this
Schedule of Values, to address unforseen situations.
The right to add all such new codes and policy into this Schedule of Values is hereby granted
except that no new code or policy may affect the integrity of (equality in) the valuations
arising from the implementation of and continuing use of this Schedule, as approved.
The appraisal staff is responsible for gathering field information and forming
(6)(1)(b)Errors.
objective, credible opinions of value in a careful manner. Staff appraisers are
individually responsible for making opinion-based appraisal decisions with due
diligence to maintain equity between parcels by appraising each parcel (predicting the
sale price) as close to 100% of market value as is possible. Management has created,
and will create and will exercise regular quality control measures.
The appraisal staff is competent, and will use due diligence and due
(6)(1)(c)Carelessness.
care in their work. Management will exercise regular quality control measures.
2007 Schedule of ValuesPage 3
USPAP Standards Rule 6-2: Specific Appraisal Requirements
?(This Standards Rule contains specific requirements from which departure is permitted. See
the Departure Rule.)
?In developing a mass appraisal, an appraiser must observe the following specific appraisal
requirements:
?(a)identify the client and other intended users;
?(b)identify the purpose and intended use of the appraisal;
?(c)identify the scope of work necessary to complete the assignment, including any special
limiting conditions;
?(d)identify any extraordinary assumptions and any hypothetical conditions necessary in the
assignment;
?(e)identify the effective date of the appraisal
?(f)define the value being developed; if the value opinion is market value, ascertain whether the
value is to be the most probable price:
?(i)in terms of cash; or
?(ii)in terms of financial arrangements equivalent to cash; or
?(iii)in such other terms as may be precisely defined; and
?(iv)if the opinion of value is based on non-market financing or financing with unusual
conditions or incentives, the terms of such financing must be clearly identified and the
appraiser?s opinion of their contribution to or negative influence on value must be
developed by analysis of relevant market data;
?(g)identify the characteristics of the properties that are relevant to the purpose and intended use
of the mass appraisal, including:
?(i)the group with which a property identified according to similar market influence;
?(ii)the appropriate market area and time frame relative to the property being valued; and
?(iii)their location and physical, legal, and economic characteristics.
?(h)identify the characteristics of the market that are relevant to the purpose and intended use of
the mass appraisal, including:
?(i)location of the market area;
?(ii)physical, legal, and economic attributes;
?(iii)time frame of market activity; and
?(iv)property interests reflected in the market.
Page 4New Hanover County Tax Office
?(I)in appraising real property or personal property;
?(i)identify the appropriate market area and time frame relative to the property being
valued;
?(ii)when the subject is real property, identify and consider any real property or intangibles
that are not personal property but are included in the appraisal;
?(iii)when the subject is personal property, identify and consider any real property or
intangibles that are not personal property but are included in the appraisal;
?(iv)identify known easements, restrictions, encumbrances, leases, reservations, covenants,
contracts, declarations, special assessments, ordinances, or other items of similar
nature; and
?(v)identify and analyze whether an appraised fractional interest, physical segment or
partial holding contributes pro rata to the value of the whole;
?(j)in appraising real property, identify and analyze the effect on use and value of the following
factors: existing land use regulations, reasonably probable modifications of such regulations,
economic supply and demand, the physical adaptability of the real estate, neighborhood
trends, and highest and best use of the real estate; and
?(k)recognize that land is appraised as though vacant and available for development to its
highest and best use and that the appraisal of improvements is based on their actual
contribution to the site;
?(l)in appraising personal property: identify and analyze the effects on use and value of industry
trends, value-in-use, and trade level of personal property. Where applicable, identify the
effect of highest and best use by measuring and analyzing the current use and alternative
uses to encompass what is profitable, legal, and physically possible, as relevant to the
purpose and intended use of the appraisal. Personal property has several measurable
marketplaces; therefore, the appraiser must define and analyze the appropriate market
consistent with the purpose of the appraisal; and
?(m)analyze the relevant economic conditions at the time of the valuation, including market
acceptability of the property and supply, demand, scarcity, or rarity.?
Compliance with Standards Rule 6-2 (Departure Permitted)
New Hanover County is the Client.
(6)(2)(a)Client.
The purpose of this revaluation is to appraise real property for 100% of
(6)(2)(b)Purpose.
market value. The Client will use each estimate of appraised value as the basis for
levying an(according to value) tax. Because of the nature of
ad valorem ad valorem
taxation, each owner or other entity paying the tax that results becomes the End User
of the value information produced by the 2007 revaluation. The purpose of a
revaluation is to increase uniformity or equity in taxation (and not to increase the
Client?s income).
2007 Schedule of ValuesPage 5
Review the descriptive attributes of all real properties in the field,
(6)(2)(c)Scope of Work.
and accomplish all other tasks necessary to produce a credible, equitable estimate of
market value for all properties as of January 1, 2007.
Schedule of Values, Appendix 6.
(6)(2)(d)Assumptions, Limiting, and Hypothetical Conditions.
The Appraiser?s Certification appearing in the ,
Schedule of ValuesStandards Rule 6-8
is subject to the following conditions and to such other specific and limiting conditions
as are set fourth by each appraiser in the ?computer assisted mass appraisal? (CAMA)
system ?notes? which will appear on the individual property?s.
Property Record Card
Each appraiser assumes no responsibility for matters of a legal nature affecting the
property appraised or the title thereto, nor does each appraiser render an opinion as to
the title, which is assumed to be good and marketable. Every real property is appraised
assuming a exists (all rights are vested in the owner-of-record).
fee-simple estate
The present use of each parcel?s land, , are
as governed by present zoning-in-force
assumed to be the parcel?s. See ,.
Highest and Best UseSchedule of ValuesAppendix 2
Building sketches are included to assist the reader in visualizing the building, whose
dimensions are rounded to the nearest foot. All administrative data (owner name, legal
description, etc.), and other data are based on the best information available. Staff
appraisers regularly make field visits to gather data about any given property; but no
staff member has made a survey of any property.
The allocation of total value into land and building components are not to be compared
to the allocation of total value in any other appraisal. Any such comparison is invalid.
Each appraiser assumes there are no hidden or unapparent conditions of the property,
subsoil, structures, or North Carolina Coastal Area Management Act, which would
render it more or less valuable. Each appraiser assumes no responsibility for such
conditions, or for engineering which might be required to discover such factors. Once
the condition is made known by the owner or his agent, the appraiser will consider
whether and how the condition(s) will affect the value.
The best indication of the sale price commonly available is as inferred from the
Excise
purchased when the deed is recorded (at the rate of $2.00 per $1,000 of
Tax Stamps
new money, per N.C.G.S. 105-228.28). Appraisers will confirm and otherwise qualify
sales data obtained from this and other sources as time and resources permit.
Information, estimates, and opinions furnished to the Tax Department were obtained
from sources considered to be reliable and are believed to be true and correct. Field
inspections of properties will be made according to ,
USPAP Standards Rule 6 (4)(d)
and each appraiser is responsible to use extreme care in the collection of field data.
The content of the Tax Department?s computer files, the , the
Property Record Card
and its , and other archived data (except that specifically
Schedule of ValuesAddenda
shielded by N.C.G.S. 105-296 (h)) is public record information. However conclusions
as to property value shall not be used for any purpose other than the stated purpose of
taxation without the previous written consent of the Tax Administrator.
ad valorem
Page 6New Hanover County Tax Office
According to the dictates of N.C.G.S. 105-286, the
(6)(2)(e)Effective Date of Appraisal.
effective date of the 2007 revaluation is January 1, 2007 and each January 1 thereafter
according to the dictates of N.C.G.S. 105-287. See ,.
Schedule of ValuesAppendix 1
N.C.G.S. 105-283 defines Market Value. A second definition of
(6)(2)(f)Definition of Value.
value mandated for qualifying Agricultural, Horticultural, and Forest lands may be
found beginning at N.C.G.S. 105-277.2. See ,.
Schedule of ValuesAppendix 1
Real property in New Hanover County is typically
(6)(2)(g)Relevant Characteristics of Sale.
sold using financial arrangements equivalent to cash.
New Hanover County is located in the
(6)(2)(h)Relevant Characteristics of the Market.
southeastern corner of North Carolina.
The City of Wilmington, the Town of Carolina Beach, the Town of Kure Beach, and
the Town of Wrightsville Beach are located within its borders. For the 2006 tax roll,
the County had 95,133 parcels of real estate of which about 14,000 had no structure,
about 74,000 of which were improved with residential structures, and about 7,000 of
which were improved with commercial/industrial structures.
The appraisal staff has divided New Hanover County into over 1,000
(6)(2)(i)Market Areas.
neighborhoods, (geographic collections of homogeneous properties). Such neighbor-
hoods are the ?location? in the maxim describing the three things in valuing real estate
are ?location, location, and location?. ?Neighborhood? is the most basic market area
for analyzing and revaluing real property in the county for the 2007 Tax Roll. Similar
neighborhoods will be grouped or clustered into Neighborhood Models.
The typical residential parcel will find a buyer when exposed to the market for three to
six months. Commercial and/or industrial parcels typically require longer exposure.
Unless otherwise noted, real property is appraised assuming zoning
(6)(2)(j)Market Analysis.
represents its (defined in the ,).
Highest and Best UseSchedule of ValuesAppendix 2
Sales analysis (which measures the effect of all forces at work in the market) will assist
the appraisers in calibrating and reconciling the values within each neighborhood.
Where possible and meaningful, land will be appraised (within each
(6)(2)(k)Land Appraisal.
neighborhood) as though vacant and available for development to its
Highest and Best
(defined as noted above). The appraisal of improvements on each parcel will
Use
measure the contribution of the improvement to the value of the land.
With exception(s), the value of personal property is
(6)(2)(l)Appraisal of Personal Property.
not applicable to the 2007 revaluation of the real estate in New Hanover County.
Using the features in the County?s
(6)(2)(m)Economic Conditions on the Date of Appraisal.
?computer assisted mass appraisal? (CAMA) system, the appraisal staff will calibrate
the individual appraisals to the County?s real estate market as of January 1, 2007.
2007 Schedule of ValuesPage 7
USPAP Standards Rule 6-3: Methods and Techniques Employed
?(This Standards Rule contains binding requirements from which departure is not permitted.)
?In developing a mass appraisal, an appraiser must:
?(a)identify the appropriate procedures and market information required to perform the
appraisal, including all physical, functional, and external market factors as they may affect
the appraisal;
?(b)employ recognized techniques for specifying property valuation models; and
?(c)employ recognized techniques for calibrating mass appraisal models.?
Compliance with Standards Rule 6-3 (Departure Not Permitted)
Standardized data collection forms, procedures, quality
(6)(3)(a)Appraisal Procedures.
control, and training materials assure that appraisal data will be collected and used
uniformly on the universe of properties to be appraised in the 2007 revaluation. The
(the IAAO) is the source of generally
International Association of Assessing Officers
accepted appraisal practice and procedures used in New Hanover County.
The ,and
Schedule of ValuesAppendices 3 4
(6)(3)(b)Recognized Appraisal Techniques.
taken together discuss and define how the County?s ?computer assisted mass
appraisal? (CAMA) system appraises real property. All appraisal techniques used are
widely recognized. Please refer to the textbook
Improving Real Property Assessment
for additional information.
The ,defines
Schedule of ValuesAppendix 3
(6)(3)(c)Recognized Calibration Techniques.
the process the appraisal staff will use to calibrate the County?s CAMA software
system using sales of comparable properties.
Page 8New Hanover County Tax Office
USPAP Standards Rule 6-4: Cost, Market, Income Approaches
?(This Standards Rule contains specific requirements from which departure is permitted. See
the Departure Rule.)
?In developing a mass appraisal, an appraiser must observe the following specific requirements,
when applicable:
?(a)collect, verify, and analyze such data as are necessary and appropriate to develop, when
applicable:
?(I)the cost new of the improvements;
?(ii)accrued depreciation;
?(iii)value of the land by sales of comparable properties;
?(iv)value of the property by sales of comparable properties;
?(v)value by capitalization of income - i.e., rentals, expenses, interest rates, capitalization
rates, and vacancy data;
?(b)base estimates of capitalization rates and projections of future rental rates, expenses, interest
rates, and vacancy rates on reasonable and appropriate evidence;
?(c)identify and, as applicable, analyze terms and conditions of any available leases; and
?(d)identify the need for and extent of any physical inspection.?
Compliance with Standards Rule 6-4 (Departure Permitted)
The appraisal staff will utilize standard real property data
(6)(4)(a)Data Collection and Use.
collection procedures and analysis to both prepare and defend each annual Tax Roll prior
to the effective date of the 2007 Revaluation, and in the 2007 Tax Roll (and following)
using generally accepted appraisal practice of
International Assoc. of Assessing Officers.
reveals the component detail within the .
Appendix 5Schedule of Values
discusses the coding, protocol, and business rules appraisers use to produce
Appendix 4
credible, equitable, and defensible appraisals for the 2007 Tax Roll.
discusses how the computer assisted mass appraisal (CAMA) software uses
Appendix 3
the rates in , and the appraiser?s work product described in to
Appendix 5Appendix 4,
produce credible estimates of Market Value.
The county contracted with
(6)(4)(b)Capitalization Rates, Income and Expense Data.
to collect, analyze, and provide income model data.
Ingram McKenzie and Associates
During each year?s appeal season, the staff will
(6)(4)(c)Specific Income Approach Data.
collect, encode, analyze and use submitted income and expense data as appropriate.
2007 Schedule of ValuesPage 9
(6)(4)(d)Field Inspections.
Examples Where Field Inspection Is Required
Appraisers are required to make a personal field inspection before finalizing changes
. Such descriptive attributes include, but
to most land or building descriptive attributes
certainly are not limited to:
AttributeDescription
The building sketch may be added or modified only after a field visit
Building
where the building, building addition, or suspect dimension was measured.
Sketch
An appraiser?s judgment of may be added or modified
Quality Grade
Building
only after field inspection. Further in-office research may also be required.
Quality
Effective Age Group and Condition are major components of depreciation.
Effective
An appraiser?s judgement of which or code
Effective Age GroupCondition
Age /
is appropriate may be added or modified only after a field inspection.
Condition
Any ?view? from a given property sufficient to enhance the value of that
View of
property may be added or modified only after a field inspection. This
Water,
does not apply to individual units within condominium projects.
Golf, etc.
Examples Where Field Inspection Is Not Required
The appraisal staff is able to make certain appraisal decisions from trustworthy data
available from a limited number of sources other than by personal inspection. Such
data and the source(s) of the data thereof include, but are not limited to:
AttributeSource
Federal Emergency Management Agency (FEMA) maps
Flood
Zone
Geographic Information System (GIS) Maps
Land Size
Arial Photographs, GIS Maps
Land Type
GIS Maps
Location
GIS Maps
Lot Shape
GIS Maps
Neighbor-
hood
Deed Stamps, Realtor?s Multiple Listing Service, telephone contact
Sale Price
Water and Sewer Departments of County, City, and Towns
Utilities
Available
Arial Photographs, GIS Maps
Water/Golf
Frontage,etc.
GIS Maps, Planning Departments of County, City, and Towns
Zoning
Page 10New Hanover County Tax Office
USPAP Standards Rule 6-5: Calibrating a Mass Appraisal
?(This Standards Rule contains specific requirements from which departure is permitted. See
the Departure Rule.)
?In applying a calibrated mass appraisal model an appraiser must:
?(a)value improved parcels by recognized methods or techniques based on the cost approach, the
sales comparison approach, and income approach, as applicable;
?(b)value sites by recognized methods or techniques; such techniques include but are not limited
to the sales comparison approach, allocation method, abstraction method, capitalization of
ground rent, and land residual technique;
?(c)when developing the value of a leased fee estate or a leasehold estate, analyze, as applicable,
the effect on value, if any, of the terms and conditions of the lease;
?(d)analyze the effect on value, if any, of the assemblage of the various parcels, divided
interests, or component parts of a property; the value of the whole must not be developed by
adding together the individual values of the various parcels, divided interests, or component
parts; and
?(e)analyze the effect on value, if any, of anticipated public or private improvements, located on
or off the site, to the extent that market actions reflect such anticipated improvements as of
the effective appraisal date; appraise proposed improvements only after examining and
having available for future examination:
?(I)plans, specifications, or other documentation sufficient to identify the scope and
character of the proposed improvements;
?(ii)evidence indicating the probable time of completion of the proposed improvements; and
?(iii)reasonably clear and appropriate evidence supporting development costs, anticipated
earnings, occupancy projections, and the anticipated competition at the time of
completion.?
Compliance with Standards Rule 6-5 (Departure Permitted)
The is one appraisal method in the
Cost Approach
(6)(5)(a)Market Adjusted Cost Approach.
County?s ?computer assisted mass appraisal? (CAMA) software system. The
,discusses the calibration of the appraisal models. This
Schedule of ValuesAppendix 3
process falls well within the guidelines of .
generally accepted appraisal practice
The ,discusses how the appraisal
Schedule of ValuesAppendix 3
(6)(5)(b)Land Valuation.
staff use the CAMA system to value land within each neighborhood Land rates
discussed are developed using sales of comparable properties, and/or the allocation /
abstraction methods, the capitalization of ground rents, and land residual techniques.
2007 Schedule of ValuesPage 11
A long-term lease signed is able to divide the value of the
(6)(5)(c)The Effect of Leases.
whole real property between the lessor and the lessee. To assume the
fee simple estate
exists in all property in the County is to equitably appraise each property. The lease-
hold interest (and value) created by the existence of a long term lease is not taxable
separately from the value of the whole, and is not specifically exempted by N.C.G.S.
105-274. re North Carolina Forestry Foundation, Inc., 35 N.C. App 430, 242 S.E.2d
502 (1978), affirmed 296 N.C. 330, 250 S.E.2d 236 (1979)
Combing several parcels into a new whole is ?assemblage?. The value
(6)(5)(d)Assemblage.
of the new whole is freshly established using the business rules and procedures
discussed in the , and .
Schedule of ValuesAppendices 34
From time to time the appraisal staff may assist other
(6)(5)(e)Anticipated Improvements.
county departments determine the value of anticipated improvements (those planned,
but not yet constructed). However for the annual Tax Roll, the appraiser will only
appraise the improvements actually in existence on January 1 of the year in question.
Page 12New Hanover County Tax Office
USPAP Standards Rule 6-6: Reconciling a Mass Appraisal
?(This Standards Rule contains binding requirements from which departure is not permitted.)
?In reconciling a mass appraisal an appraiser must:
?(a)reconcile the quality and quantity of data available and analyzed within the approaches used
and the applicability of suitability of the approaches used; and
?(b)employ recognized mass appraisal testing procedures and techniques to ensure that standards
of accuracy are maintained.?
Compliance with Standards Rule 6-6 (Departure Not Permitted)
One of management?s responsibilities is to calibrate the rates in the
(6)(6)(a)Analysis.
?computer assisted mass appraisal? (CAMA) system. One of the appraiser?s
responsibilities is to reconcile each neighborhood and properties therein, bringing each
neighborhood to 100% of market value. The tools to accomplish both responsibilities
are discussed in the , 3 .
Schedule of ValuesAppendix
Appraisal management continually develops and uses Quality Control
(6)(6)(b)Accuracy.
tools, procedures, and techniques to ensure that standards of accuracy are maintained.
Management will continue to develop additional tools, procedures, and techniques
throughout the life of a given revaluation cycle (as long as eight years).
It is implicit in mass appraisal that, even when properly specified and calibrated mass
appraisal models are used, some individual value estimates will not meet standards of
reasonableness, consistency, and accuracy. However the staff appraisers engaged in
this revaluation will have new software tools on their desk. These tools are designed
to uncover these problem appraisals before mailing notices of value for the 2007
revaluation.
2007 Schedule of ValuesPage 13
USPAP Standards Rule 6-7: Written Reports
?(This Standards Rule contains binding requirements from which departure is not permitted.)
?A written report of a mass appraisal must clearly communicate the elements, results, opinions,
and value conclusions of the appraisal.
?Each written report of a mass appraisal must:
?(a)clearly and accurately set forth the appraisal in a manner that will not be misleading;
?(b)contain sufficient information to enable the intended users of the appraisal to understand the
report properly;
?(c)clearly and accurately disclose all extraordinary assumptions, hypothetical conditions, or
limiting conditions that directly affect the appraisal and indicate its impact on value;
?(d)state the identity of the client and any intended users, by name and type;
?(e)state the purpose and intended use of the appraisal;
?(f)disclose any assumptions or limiting conditions that result in deviation from recognized
methods and techniques or that affect analysis, opinions, and conclusions;
?(g)set forth the effective date of the appraisal and the date of the report;
?(h)define the value, including the type and definition and its source;
?(I)identify the properties appraised including the property rights;
?(j)describe sufficient information to disclose to the client and any intended users of the
appraisal the scope of work used to develop the appraisal;
?(k)describe and justify the model specification(s) considered, data requirements, and the
model(s) chosen;
?(l)describe the procedure for collecting, validating, and reporting data;
?(m)describe calibration methods considered and chosen, including the mathematical form of the
final model(s); describe how value estimates were reviewed; and, if necessary, describe the
availability of individual value estimates;
?(n)in the case of real property, discuss how highest and best use was determined;
?(o)identify the appraisal performance tests used and set forth the performance measures
attained;
?(p)provide any additional information necessary to explain the appraisal more fully, including
departures permitted by the ; and
Departure Rule
?(q)include a signed certification in accordance with Standards Rule 6-8.?
Page 14New Hanover County Tax Office
Compliance with Standards Rule 6-7 (Departure Not Permitted)
?Documentation for a mass appraisal for taxation may be in the form of:
ad valorem
?(1)property records;
?(2)sales ratios and other statistical studies;
?(3)appraisal manuals and documentation;
?(4)market studies;
?(5)model building documentation;
?(6)regulations;
?(7)statutes; and
?(8)other acceptable forms.?
The computer files containing appraisal attributes and the printed (which
Property Record Card
lists the appraisal data and other pertinent facts about each property), together with the
Schedule
with its and other items such as sales ratio studies are all part of the ?written
of ValuesAddenda
report? required by USPAP Standards Rule 6-7. Therefore any and all information contained or
reported in this approved and its , all work-in-progress forms for
Schedule of ValuesAddenda
data entry purposes, and all final sales ratio studies and market studies are here specifically made
a part of satisfying this requirement.
The staff expects to give full and complete
(6)(7)(a)Clearly ... Set Forth the Appraisal.
answers to all questions. The ?full? (printable on-demand) will
Property Record Card
present all pertinent facts about any real property in a clear and concise manner. Any
owner or authorized agent having additional questions will find most of the answers in
the, as the various therein pertain(s) to the property in
Schedule of ValuesAddenda
question. Research in sales ratio studies, and other archived material, may be required
to answer every remaining question that arises fully and completely.
The will answer most
Property Record Card
(6)(7)(b)Contain Sufficient Information.
questions about an individual appraisal. The , with all ,
Schedule of ValuesAddenda
will answer the rest. Research in other archived material may rarely be required.
General statements
(6)(7)(c)Extraordinary Assumptions, Conditions, Limiting Conditions.
of Assumptions and Limiting Conditions are in the , USPAP
Schedule of Values
. Each appraiser whose initials appear on a given property will
Standards Rule 6 (2)(d)
have conducted field inspections on that property according to the Statement of
Compliance with USPAPand.
Standards Rule 6 (2)(d) 6 (4)(d)
. The client and the intended users of the revaluation are stated
(6)(7)(d)Client, User Identity
in the ,and.
Schedule of ValuesStandards Rule 6 (2)(a) 6 (2)(b)
2007 Schedule of ValuesPage 15
The purpose and the intended use of the revaluation are
(6)(7)(e)Purpose, Intended Use.
stated in the ,.
Schedule of ValuesStandards Rule 6 (2)(b)
Statements containing Assumptions and
(6)(7)(f)Assumptions and Limiting Conditions.
Limiting Conditions regarding any specific property are in the printable-on-demand
, as notes.
Property Record Card
The effective date of this reappraisal,
(6)(7)(g)Effective Date of Appraisal, Date of Report.
and for any subsequent modification or new appraisal during the live of this Schedule
of Values will be January 1, 2007. The data of report will be any date printed on the
on-demand.
Property Record Card
The definition of market value for the 2007 revaluation is found in
(6)(7)(h)Value Definition.
N.C.G.S. 105-283. A second definition of value mandated for qualifying Agricultural,
Horticultural, and Forest lands (Use Value) is found in N.C.G.S. beginning at 105-277.2.
Each property being appraised is fully identified on
(6)(7)(I)Identity of Property Appraised.
the on-demand . The property rights being appraised are
Property Record Card
identified in the , the Compliance Statement for USPAP
Schedule of ValueStandards
the.
Rule 6 (2)(d),Statement of Assumptions and Limiting Conditions
The ,contains the plan which defines
Schedule of ValuesAppendix 6
(6)(7)(j)Scope of Work.
the tasks necessary to produce credible, equitable estimates of market value for 2007.
The models for the , which are applied by
Schedule of Values
(6)(7)(k)Model Specifications.
the ?computer assisted mass appraisal? (CAMA) software system to every real
property in New Hanover County, are discussed in .
Appendix 5
The procedures and business rules for collecting data in
(6)(7)(l)Data Collection Procedures.
the field are discussed in the ,.
Schedule of ValuesAppendices 2, 3, and 4
The procedure for calibrating and reconciling a revaluation are discussed
(6)(7)(m)Calibration.
in the ,.
Schedule of ValuesAppendix 3
is defined in the ,
Highest and Best Use Schedule of Values
(6)(7)(n)Highest and Best Use.
.
Appendix 2
The performance tests and measures to be used to
(6)(7)(o)Performance Tests and Measures.
measure the revaluations are set forth in the ,.
Schedule of ValuesAppendix 3
All information required to explain any given appraisal of
(6)(7)(p)Additional Information.
real property in the 2007 revaluation will be found in the , including
Schedule of Values
all, and in the . Research in the project archives will
AddendaProperty Record Card
be required in the rare case a detailed question cannot be answered from these sources.
Appraiser initials/names recorded at the parcel level identifies
(6)(7)(q)Signed Certification.
the appraiser and the recorded initials/names will constitute the required certification.
Page 16New Hanover County Tax Office
USPAP Standards Rule 6-8: Signed Appraiser?s Certification
?(This Standards Rule contains binding requirements from which departure is not permitted.)
?Each written mass appraisal report must contain a signed certification that is similar in content
to the following form:
?I certify that, to the best of my knowledge and belief:
-?the statements of fact contained in this report are true and correct.
-?the reported analysis, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
-?I have no (or the specified) present or prospective interest in the property that the subject
of this report, and I have no (or the specified) personal interest with respect to the parties
involved.
-?I have no bias with respect to any property that is the subject of this report or to the
parties involved.
-?my engagement in this assignment was not contingent upon the reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of
value opinion, the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal.
-?my compensation for completing this assignment is not contingent upon the reporting of
a predetermined value or direction in value that favors the cause of the client, the amount
of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
-?my analysis, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the .
Uniform Standards of Professional Appraisal Practice
-?I have (or have not) made a personal inspection of the properties that are the subject of
this report.
-?no one provided significant mass appraisal assistance to the person signing this
certification. (If there are exceptions, the name of each individual providing significant
mass appraisal assistance must be stated.)?
Compliance with Standards Rule 6-8 (Departure Not Permitted)
The following Certification, being part of the officially adopted , is here
Schedule of Values
specifically made a part of the written appraisal report required under Standards Rule 6-7. The
staff appraiser whose initials/name appear appear in the CAMA system?s electronic files (in the
field) and on the written appraisal report (the Property Record Card), explicitly
Reviewer ID
agrees to and certifies to all elements of the Certification.
2007 Schedule of ValuesPage 17
Appraiser?s Certification
I certify that, to the best of my knowledge and belief:
-the statements of fact contained in any are true and correct;
Property Record Cards
-the reported analysis, opinions, and conclusions are limited only by the assumptions and limiting
conditions appearing herein; anywhere my initials
Property Record Card?s Reviewer ID Field
may be found contains my personal, impartial, professional analyses, opinions, and conclusions;
-I have no present or prospective interest in any real property in the county except as a matter of
public record or temporarily under contract to purchase for my personal account; where such
interest does/may exist, I have removed / will remove myself from the appraisal process;
-I have no personal interest with respect to the parties owning an interest in any real property in
the county except where family, friends, and acquaintances own such interest; where any such
relationship does/may exist; I have removed / will remove myself from the appraisal process.
-I have no personal bias with respect to any property that is the subject of any
Property Record
or to the parties involved;
Card
-my engagement as a County employee was not contingent upon the reporting of a predetermined
value or direction in value that favors the cause of the County or any owner or agent, the amount
of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of this appraisal;
-my compensation for completing my assignments is not contingent upon the reporting of a
predetermined value or direction in value that favors the cause of the County or any owner or
agent, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of
a subsequent event directly related to the intended use of this appraisal;
-my analysis, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the ;
Uniform Standards of Professional Appraisal Practice
-where I have made changes to a real property?s record that produced a change in value, I have
made a personal inspection of the property, excepting only changes defined in
Standards Rule
;
6(4)(d)
-no one other than Hector Ingram and Bill McKenzie of , Mark
Ingram McKenzie & Associates
Brown and John Thompson of , software vendor, and the
Cole-Layer-Trumble Company
temporary field technicians of record have provided significant mass appraisal assistance to the
persons conducting this revaluation.