COST - COST APPROACH: Cost Approach to value can be used in recently constructed commercial property. You must provide a summary
of construction costs, an appropriate appraisal of land value, and any other evidence you feel supports your opinion of value.
For commercial or agricultural buildings only. This is NOT a basis of appeal for a residential property.
INCOME - INCOME APPROACH: This method of valuation is for income
producing commercial property, industrial property, or apartments, including 2 to 4 unit buildings. It cannot
be used for rented condos, rented single family residences or basement apartments. If using this method, please
- Rent roll for the prior year ending December 31.
- Evidence of an appropriate vacancy rate.
- The prior year’s income and expense statement for this property.
- Evidence of the appropriate rate of return (capitalization rate) to be applied to the net operating income
for this property.
If this property is owner occupied you may submit equivalent data for comparable commercial or
industrial properties with evidence to justify similarities or differences from this property.