When using the sales comparison approach, the assessor considers and analyzes all available market data to arrive at a fair valuation of your property. Size, quality, condition, amenities, location and time of sale are some of the important factors given consideration. The sales comparison approach generally produces the most reliable indication of the value of residential property. Click here for further explanation of how we reassess a residential neighborhood. The cost approach estimates the current costs of material and labor needed to replace your home with one of similar quality and function.
Depreciation is factored into the valuation of the improvements.
The cost approach is a good method for appraising special purpose and unique properties that are usually owner occupied, seldom sell for the use they were constructed for, and have a limited market base. The income approach values the revenue producing capabilities of a property. This method reviews market data derived from commercial properties to determine income, expenses, vacancy rates and capitalization rates. A net operating income is capitalized into a value which includes the land. The income approach is widely used to assess commercial properties which generate income derived from tenant leases.