Determining the value of a property can be tricky business. Numerous factors come into play, and in some cases, that can make the valuation process somewhat complicated. Here at Integrity, we rely on one or more of the following industry-accepted methods to reach a fair assessment:

The cost approach
The sales comparison approach
The income approach

It's important to note that there isn't one right or wrong way to determine the value of a property. In fact, depending on the property at stake, one method may be more effective than the next. Many times, we even find that it's helpful to use two or more of these methods in concert with one another.

The cost approach

Formerly called the summation approach, this method assumes that the value of a property can be determined by adding the land value and the depreciated value of any improvements. The cost approach is most reliable when assessing newer structures and less reliable when assessing older properties. Assessors frequently use this method in conjunction with special-use properties, such as public assembly properties and marinas.

The sales comparison approach

This approach assumes that a buyer would pay no more for a property than it would cost to purchase a comparable property. The thought here is that the typical buyer will compare asking prices and ultimately purchase a property that meets his or her needs for the lowest cost.

The income capitalization approach

This method, often called the income approach, assigns a value to commercial and investment properties. The goal is to consider the income stream associated with the property and use that information to assign a value to the property.

Here at Integrity, our philosophy is to look at the "big picture." We consider numerous factors as we decide the best way to determine a property's worth, and that sometimes means we need to use more than one approach. In the end, the best approach is to consider all methods to secure a fair, accurate and equitable assessment.

Sweet Success!

We're proud to share with you an example of how our thorough assessment process helped an Indiana medical and orthopaedic manufacturing company save a lot of money.

The company had decided to invest in a new high-tech manufacturing facility. As it turns out, assessing officials were fairly aggressive in their analysis. In the end, the company ended up with a substantial tax bill that far exceeded its budgeted forecast. The company needed help!

We stepped in and did a comprehensive on-site inspection. We also completed an assessment analysis and talked with company administrators. Ultimately, we were able to pull out several cost items that did not equate to tax value.

Just over a month later, our appeal was finalized. The company will realize a tax savings of $210,000 over the life of the reassessment cycle.