Real Property - Under Arkansas law, A.C.A. § 26-1-101, real property is defined as “Not only the land itself, whether laid out in town lots or otherwise, with all things therein contained, but also all buildings, structures, improvements, and other fixtures of whatever kind thereon and all rights and privileges belonging or in anywise appertaining thereto,”
What is an Appraisal? An appraisal is an estimate of value of a property in terms of money.
Single-property appraisal is the systematic appraisal of properties one at a time. This is normally done when you buy or sell a property.
Mass appraisal is valuing a group of properties, in our case all the properties in a given county, as of a given date, using standard methods, employing common data, and allowing for statistical testing. This is what the county Assessor is tasked with doing under Arkansas statutes.
Market Value - A.C.A. § 26-26-1202 states that each parcel of Real Property shall be valued at its true Market Value in money. (excluding Agricultural Real Estate)
Market Value is internationally recognized and defined as: the most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
- The Buyer and Seller are typically motivated
- Both parties are well informed or well advised, and acting in what they consider their best interests
- A reasonable time is allowed for exposure in the open market
- Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto
- The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale
Residential Real Estate includes single family, duplexes, triplexes, quadplexes, mobile homes, condominiums and town-homes, and all outbuildings and yard improvements
Commercial Real Estate includes multifamily, retail, office, mixed use, etc.
Industrial Real Estate includes manufacturing facilities, storage facilities, distribution warehouses, etc.
Vacant Land includes all non-agricultural market value land.
Agricultural Real Estate includes all agricultural lands in the state including cropland, pastureland, and timberland.
Mineral Real Estate includes all minerals on and under the surface as outlined on deeds as mineral rights.