Property Valuation
In Texas ad valorem property taxation, 'ad valorem' means:
ABased on the property's rental income
BAccording to value (taxes are based on the assessed value of the property)✓ Correct
CFixed amount regardless of property value
DBased on the property's square footage
Explanation
'Ad valorem' is Latin for 'according to value.' Texas property taxes are ad valorem taxes, meaning they are assessed based on the value of the property as determined by the county appraisal district. The tax amount equals the assessed value multiplied by the tax rate (per $100 of value).
Related Texas Property Valuation Questions
- In the cost approach to value, the appraiser estimates the value of the land separately because:
- A Texas buyer makes a low offer on a property because comparable sales are lower than the list price. The seller counters that their property is special and worth more. The appraiser's role is to:
- In Texas, county appraisal district values are subject to review through the:
- A Texas property's assessed value for tax purposes ($380,000) differs from the appraised market value ($450,000). For a real estate sale, the relevant value is:
- A Texas appraiser is completing an appraisal and uses three comparable sales. After adjustments, the comparables indicate values of $310,000, $315,000, and $308,000. The appraiser reconciles these to $312,000. This process is called:
- The economic principle of conformity in real estate valuation states that:
- A property appraiser must reconcile value indications from multiple approaches. The weight given to each approach should be based on:
- In real estate appraisal, 'market rent' versus 'contract rent' is relevant because:
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