Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period. The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller. The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality no matter for whom the appraisal is conducted. Market value should approximate replacement cost. Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell.
Replacement cost is the dollar amount required to reconstruct a property in-kind.
In a robust economy when the sales prices of homes in a given area are reported to be rising by a particular percentage the value of individual properties in the area can be expected to appreciate by that same percentage. This is true in good times as well as bad. You generally can tell what a property is worth simply by looking at the outside. Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.