How is property value estimated?
There are three approaches to estimating market value; sales, cost and income approaches. In estimating real property values for all types of properties the assessor keeps track of: • what properties are selling for; • what it would cost today to replace them; • the costs to operate and repair them; • what rents they may earn; and • many other factors affecting value. Utilizing this data, current market value may be estimated in three different ways. The assessor may use one or more of these approaches to estimate what your property will sell for on the open market. The approach employed depends on the type of property and quality and quantity of data available for analysis. The sales approach compares your property to others that have sold. Sales prices must be carefully analyzed to get a true picture. One property may have sold high because the seller included substantial personal property or special financing. Another may have sold low because the seller was in a hurry or needed cas
