The most common property valuation methods in Florida are the sales comparison approach, the cost approach, and the income capitalization approach. The sales comparison approach, relying on recent comparable sales, is frequently used for residential properties. The cost approach, estimating replacement cost minus depreciation, is often employed for unique properties or those lacking comparable sales. The income capitalization approach, converting net operating income into value, is primarily used for income-producing properties like commercial real estate. Property tax assessments in Florida are based on “just value” as of January 1st each year. Florida’s 10% Save Our Homes assessment limitation caps annual increases for homesteaded properties. Overassessment rates can vary by county, with some studies suggesting significant discrepancies between assessed and market values. Property owners can challenge assessments through county property appraisers and Value Adjustment Boards. Accurate valuation is crucial for fair taxation, property sales, and investment decisions.
