Texas Property Tax Consultant Practice Exam

What method does the appraisal district use to estimate market value?

1. Professional visual inspections only

2. Adequate appraisal techniques and methods

3. Estimate based on market trends

4. Regular property surveys only

The correct answer is: Adequate appraisal techniques and methods

The appraisal district uses adequate appraisal techniques and methods to estimate market value, as this approach encompasses a range of established appraisal practices that ensure a comprehensive evaluation of a property's worth. This includes not only the analysis of market trends but also techniques such as the sales comparison approach, cost approach, and income approach. Employing these varied methodologies allows the appraisal district to take into account different factors such as recent sale prices of comparable properties, the costs involved in reproducing the property, and potential income the property can generate. This multi-faceted approach provides a more accurate and reliable assessment of market value compared to relying solely on visual inspections or periodic surveys. Thus, the correct answer reflects a broad understanding of the process and ensures that the estimate of market value is both systematic and pertinent to current market conditions.