How Is a Property Value Determined?
Itís a total of the land worth plus any improvements made to the land. Those improvements can be anything from your house Ė the most obvious Ė to sheds, fancy driveways, tennis courts, pools, even landscaping.
As for the land, its size and location and its ability to be developed are determining factors. If itís too hilly or sandy, making it difficult to build on, it likely will be worth less. If itís in a desirable neighborhood, itís going to be worth more. If itís near shopping, that can be good. If itís too close to shopping centers and traffic, that can lower the value.
Keep in mind, too, future zoning plans. A home may have a higher value when itís first built and has wonderful green-space views. But if zoning allows for that green-space to turn into a shopping mall 10 years down the road, you can expect the homeís value to decrease when the view changes to delivery trucks and parking lots.
All the components that make up a propertyís value are given values based on comparable properties in the neighborhood. For instance, if you live in a strictly middle class neighborhood and add a tennis court Ė the only one in your whole neighborhood Ė an assessor (or current buyers) may not really see it as a valuable addition Ė at least not valuable enough to pay a premium for the home Ė since most people moving into a strictly middle-class neighborhood would neither expect nor want a tennis court in their yard.