Cost approach to value
The Cost Approach to Value can be used to determine the assessed values of the following properties:
- commercial, industrial and institutional properties
- agricultural properties
- any other non-residential properties
The Cost Approach is used for estimating market value-based assessments that quantifies the cost in current dollars, less depreciation, to recreate the property being assessed. This approach is based on the assumption that a potential purchaser would pay no more for the property than the cost of its replacement, less depreciation.
Note: The Marshall Valuation Service rates are used to determine replacement costs.
Calculating your property's assessment
To calculate your property's assessment using the Cost Approach to Value, the Assessment Branch maintains a database of information about each property which includes:
- recorded property characteristics
- building permits
- site visits
- land title information
- rental and expense information
- sales data
In addition, Assessors follow a regular inspection program to update the database containing your property’s physical characteristics.
Changes to your property's assessed value
Your property's assessment will change if new construction, upgrades, additions or demolitions were recorded for the property. There could also be a change to your property’s assessment from a reassessment, which occurs every four years to update the market data and analyses used by the Assessment Office to value your property.