Texas Property Tax Consultant Practice Exam

Who is responsible for estimating market value when using the sales comparison approach?

1. The owner of the property

2. The appraisal district

3. The county judge

4. The Texas State Comptroller

The correct answer is: The appraisal district

When utilizing the sales comparison approach to estimate market value, the appraisal district plays a crucial role. The sales comparison approach involves comparing the subject property to similar properties that have recently sold in the market, known as comparables or "comps." The appraisal district is tasked with conducting assessments and determining property values for taxation purposes. In this process, the appraisal district collects data on property sales, characteristics, and trends within the local real estate market. They analyze this information to establish a fair and equitable market value for the properties under their jurisdiction. This responsibility ensures that property taxation is based on accurate and current market information, thereby supporting local government needs for revenue while maintaining fairness in assessments. The other options, such as the property owner, county judge, and Texas State Comptroller, do not have the primary responsibility for estimating market value through the sales comparison method. The property owner may provide information about their property, but the determination of market value is not their responsibility. The county judge has various administrative and judicial responsibilities but is not involved in the valuation of properties for tax purposes. The Texas State Comptroller oversees the property tax system at the state level but does not engage in the valuation of individual properties.