How are the values established?

There are three different methods to estimating market value.

  • The Sales Comparison method compares a property with similar properties that have recently sold in the same or similar neighborhoods. All properties for which there is a sufficient number of reasonably comparable sales will be valued using this method.
  • The Replacement Cost method estimates what it would cost as current, local prices for construction material and labor to replace the building. Depreciation and obsolescence are subtracted to reach a net value for the buildings, and then the value of the land is added to reach a market value for the property.
  • The Capitalization of Income method is used primarily for commercial and apartment properties. This method estimates the predictable net rental income after expenses are deducted that would be generated for the property and then determines the market value on the basis of what a prudent investor would pay for such a property.

After reviewing the valuations using the above three approaches where applicable, a final correlated value will be determined to be used as the basis of the assessed value.

Show All Answers

1. What is a Revaluation?
2. Why a Revaluation?
3. What are the benefits of a Revaluation to me as a property tax payer?
4. How are the values established?
5. Why an inspection of properties?
6. What can I expect during a visit by an inspector?
7. How long will an inspection take?
8. Will I be assessed more for my decorating and/or landscaping?
9. What if I am not home?
10. Can I refuse entry to the field inspector?
11. When will your inspectors be in my neighborhood?
12. Can I schedule an appointment in advance?
13. My property has unique conditions which affect its value. What should I do?
14. If the assessed value of my property increases because of the re-valuation, will my taxes automatically increase?
15. Why do some homeowners pay more taxes after a revaluation and some pay less?
16. When will I be notified of my new assessment?
17. What are my neighbors' assessed values?
18. Who can I talk to about my value?
19. When will I find out the results from my informal hearing?
20. Is there an official appeal process if I still disagree with my value?
21. Can I have a copy of my appraisal?
22. What is the difference between assessed value and market value?