What is market value?
The International Association of Assessing Officers defines market value in the following manner:
Market value is the most probable price expressed in terms of money that a property would bring if exposed for sale in the open market in an arm's length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted and for which it is capable of being used. State law requires the assessor to value all property at its market value.
How is my market value calculated?
Sales of real estate are used as a guide in determining the assessor's market values. These sales are analyzed to determine which factors contribute to the value. These factors are then put into a model or formula to apply to all properties. The values are then tested to make sure that the quality of the assessment meets statistical requirements.
Why does my market value change even if an appraiser has not been to my home recently?
Trends in the real estate market due to local economic conditions, interest rates, supply and demand and changing tax laws influence the value of property.
How am I notified of any valuation change?
All properties with changes in classification or market value changes of $100 or over will be notified with a valuation notice.
How do I know if my valuation is correct?
The property owner should first make an attempt to find out what the property is worth. This can be done by checking out sales of homes in your neighborhood, checking values of similar homes and talking to Realtors and appraisers. Sales information is available during working hours in the Assessor's office for public viewing.
How can I appeal my valuation?
If property owners do not agree with the market value, they should first contact the Assessor's office to discuss the matter. Many questions and concerns can be addressed by this informal appeal process. Formal appeal would take place initially through the local boards of review.