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[CA] How to define 'Market value' for home addition regarding tax reassessment

I know that CA does blended assessment but what I'm trying to understand is how to estimate the 'market value' portion of the new addition.

For example, let's say the house is worth 2,000 sqft @ $500 / sqft = $1,000,000. You add another 2,000sqft @ $200 / sqft cost = $400,000 total cost. Similar 4,000 sqft houses are sold for $1,800,000.

So would the market value of the new addition be $400,000 or $800,000? I think it's the former since land is already factored into the existing assessment, but I just want to confirm.

submitted by /u/escape30now
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source https://www.reddit.com/r/RealEstate/comments/fb9anq/ca_how_to_define_market_value_for_home_addition/
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