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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />OVERALL RATES (OAR) 2012 REVALUATION <br />The following chart contains typical overall rates and expense ratios for use in performing standardized income <br />appraisals. The expense ratio ranges are for use on properties where the gross lease is the most likely lease <br />arrangement, when net, double net or triple net leases are in order the expense ratio will need to be adjusted. <br />These expense ratios include property taxes which must be backed out of the ratio if the tax rate is added to the <br />OAR. These rates are meant as a guideline for the appraiser to use on typical properties in Cabarrus County. <br />Factors such as; location, quality of tenant, and other risk factors may require the use of factors outside of these <br />ranges. The lower capitalization rates are best used in better locations and with properties of lower risk. The <br />higher rates are to be used in the less desirable locations with higher risk. Higher or lower factors may be <br />considered for properties that fall out of the norms for Cabarrus County. When applying overall rates for <br />assessment purposes the property taxes should be removed from expenses and the tax rate should be added to <br />the overall rate. <br />YEAR BUILT <br />2000 -2012 <br />1990 -2000 <br />1989 -OLDER <br />Low <br />High <br />Low <br />High <br />Low <br />High <br />APARTMENTS <br />TYPICAL <br />6.00% <br />7.50% <br />7.00% <br />8.00% <br />7.50% <br />10.00% <br />LUXURY <br />6.50% <br />7.50% <br />7.00% <br />8.00% <br />7.50% <br />10.00% <br />EXPENSES <br />LARGE >20 UNITS <br />25.00% <br />40.00% <br />35.00% <br />45.00% <br />40.00% <br />55.00% <br />SMALL <20 UNITS <br />25.00% <br />35.00% <br />30.00% <br />40.00% <br />35.00% <br />45.00% <br />COMMERCIAL <br />OAR <br />7.00% <br />10.00% <br />8.00% <br />11.00% <br />9.00% <br />13.00% <br />EXPENSES <br />15.00% <br />20.00% <br />17.00% <br />22.00% <br />20.00% <br />35.00% <br />OFFICE <br />OAR <br />7.50% <br />8.50% <br />8.00% <br />9.50% <br />9.00% <br />10.50% <br />EXPENSES <br />15.00% <br />20.00% <br />17.00% <br />22.00% <br />20.00% <br />35.00% <br />MOTEL <br />OAR <br />10.50% <br />11.50% <br />12%-13% <br />EXPENSES <br />65.00% <br />70.00% <br />75.00% <br />HOMES FOR THE <br />ELDERLY <br />OAR <br />10.50% <br />11.50% <br />12%-13% <br />EXPENSES <br />65.00% <br />70.00% <br />75.00% <br />OAR <br />10.50% <br />11.50% <br />12%-13% <br />Cabarrus County - 2012 Revaluation INCOME PROPERTY VALUATION 8- 16 <br />05/24/01 <br />Attachment number 9 <br />G -6 Page 287 <br />