How are market value Property Assessments completed?
The market place sets the value of your property. The Assessors review, analyze and measure the market from year to year. There are three methods that may be used to estimate and determine market value assessments. The estimate of market value is based on one or a combination of these approaches. Sales Comparison – this approach compares sales of similar property to your property with positive or negative adjustments made to account for differences between the properties. Income Approach – this approach is primarily used to determine value on properties that would be bought and sold based on their income producing potential. The income a property can generate is capitalized at an appropriate rate in order to produce an estimate of current value. Cost Approach – based on the replacement costs of buildings (less depreciation), plus the estimated market value of the land, assuming it were vacant.
