Minnesota Statutes require estimated market value to be at 100% of market. Assessors view and inspect real estate to gather appropriate specific and general data in the valuation process. Because property values change with changing economic and demographic conditions, current sale information is continuously reviewed to establish a foundation for the valuation process. In addition to market changes, any physical changes that affect the value of land and buildings are noted and considered. All factors affecting market value are considered in this process.
Estimated Market Value
Estimated market value is the value your property is assessed at. It is the value the assessor feels your property would be able to sell for in the current market. Minnesota state law requires assessors to be at 100% of market value.
State law requires that the value and classification of real estate be established as of January 2 each year. All good sales and transactions of property are reviewed annually through statistical analysis to make determinations about market conditions and adjustments that are required to meet the Minnesota Department of Revenue guidelines for equalization. The valuation process is as follows.
Sales Analysis & Review
A review and analysis of all good sales for every property classification and jurisdiction is performed.
The appraiser gathers information on all physical characteristics of the property that affect market value, such as size, age, quality, basement finish and extra features, such as fireplaces, extra baths, walkouts, etc.
Appraisal staff has been assigned a quintile review to meet the state requirements of viewing properties approximately every 5th year. In addition, all new construction, alterations, or improvements that contribute to market value will be viewed in the appropriate year.
All physical property characteristics are entered into a computerized system which creates a model to value the properties and is driven by actual sales. The market values estimated by the assessor should be at, or very close to, the amount the property would sell for if placed on the open market as required by Minnesota Statutes. The State Board of Equalization reviews our annual assessment and has standards requiring the overall level of assessment to be between 90% and 105% of market value. The State Board of Equalization does and will make adjustments to our annual assessment to ensure compliance with this policy.
A Notice of Value and Classification is mailed in the spring to each property owner. The assessment on January 2 forms the basis for the following year's tax. The value and classification on January 2 is used to calculate the taxes payable in the next calendar year.