Unlike an appraiser in the private sector who is hired to ascertain the value of one particular property as of a given date, the Assessor of Property's mission is much broader in scope.  The goal of the Assessor is to estimate fair market value for all property in the county.  Fair market value is defined as how much a property would sell for, in an open market, under normal conditions.  To determine market values, the assessor must be familiar with all aspects of the local real estate market, such as: what different types of properties are selling for, local construction and repair costs, normal operating expenses, typical rents, and current financing charges for borrowing money to build or buy property.

The rules governing the tax appraisal process in Tennessee are based upon the same principles and procedures that are used throughout the appraisal profession. There are three basic approaches to the valuation of real property:

The MARKET Approach involves comparison of a property to other properties with similar characteristics that have recently been sold.

The COST Approach involves estimating the replacement cost of a structure, and adjusting that estimate to account for depreciation.

The INCOME Approach is an analysis of a property's value based on its capacity to generate revenue for the owner.

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