For example, let's say that in your neighborhood a home sold for $80,000 and is identical to yours except that is has no garage and you have a two-car garage. You have determined that your garage is worth $4,000 to $6,000. Another home sold for $96,000. It has the same house and garage as yours but has an extra lot. Land sales show that the value of this extra lot is $8,000.
- $80,000 plus $4,000 equals $84,000 plus $6,000 equals $86,000
- $96,000 minus $8,000 equals $88,000
These two sales indicate a proper assessment of your property should be between $42,000 and $44,000.
Recent Sales in Your Area
Other recent sales in your area should be reviewed the same way. You need to be especially careful if the sales are different from your home in size, age or quality. This will require some time and thought, but the hardest part will be to remain objective.