Estimating Market Value

Finance estimates your property’s value each year. We use one of three approaches to value your property: sales, cost, or income.

• Sales: Finance reviews prices of similar properties that sold to estimate the market value for your property. This method is used most often to value small residential properties (e.g., one-, two-, and three-family homes and vacant land).
   
• Income: Finance estimates your property value based on its income producing potential. The income is based on information owners provide about properties in the RPIE filing, or market data. This approach is used for most commercial property and residential properties that contain 11 or more units. State law requires that most condos and coops be valued as if they were residential rental buildings – click here to learn more. We either divide the net income by a capitalization rate (an estimated rate of return) or we multiply the gross income by a multiplier.
   
• Cost: Finance estimates the land value and the cost of constructing, reproducing or replacing your building. We use this method for new construction and renovations, specialty properties and utilities.
  

Related Links
Calculating Taxable Value
Calculating Your Annual Property Taxes
Condominium/Cooperative Comparables
Rolling Sales Update
Statements of Assessment Procedure
Valuation/Assessment