Estimating Market Value
Finance is required by law to estimate the value of your property as of January 5th each year. Finance uses one of three approaches to value your property: sales, cost, or income. This value is the basis for the taxes you will pay in July.
- Sales: Finance reviews prices of similar properties that sold in the last three years to estimate the market value for your property. This method is used most often to value small residential properties (e.g., 1-, 2-, and 3-family homes and vacant land).
- Income: Finance estimates your property value based on the income you get for renting your property. The income is based on information you provide about your property, or market data. This approach is generally used for income-producing properties, such as office and apartment buildings. 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. This method is used for new construction and renovations; specialty properties, such as churches, museum and stadia;and utilities.
- Cooperatives and Condominiums: State law requires Finance to value cooperative and residential condominium buildings as if they were rental apartment buildings. Finance's value is not based on the sales price of individual co-op or condo units but on an estimate of the rent that would be charged for the units if they were rental apartments.
Related Links
Assessment Roll
Calculating Your Annual Property Taxes
Statements of Assessment Procedure
