Your property is valued at its full cash value as defined in Revenue and Taxation code 110 using the following approaches to value:
- Market Approach – Value is determined by comparing market sale of similar properties. Most often used for determining value for single family residential properties.
- Income Approach – Value is determined by capitalizing the expected income less expenses a property may produce. Most often used to determine the value of income producing properties.
- Cost Approach – Value is determined using historic or replacements costs less depreciation. Most often used for adding value for additions, or when little income and market data exists.
Depending on the purpose of the valuation, a percent of the property, or the entire property, will receive a new value. See Change In Ownership
and New Construction