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1. What is estimated market value?

This value is what the assessor estimates your property would likely sell for on the open market. State law requires assessors to value property at 100% of market value. Because it is statistically impossible to value at market value, state standards require the assessors to value property between 90% and 105% of market value based upon a sales sample, not just on an individual sale.

2. 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.

3. Why does my market value change if I have made no improvements to my property?

Trends in the real estate market due to local economic conditions, interest rates, and supply / demand influence the value of property. The Assessor’s Office studies the real estate market each year. When properties sell for more each year, the assessor is required to adjust the values accordingly. Estimated market values can also be decreased if the real estate market shows sale prices are going down.

4. Does an increase in estimated market value always mean in increase in property tax?

Not necessarily; many factors go into determining how much property taxes change from year to year. The items include spending habits of local governments, school bonds for either building or operating expenses, changes made by the legislature in the state property tax system, the amount of new construction within the county, and a change in property value or classification. A change in any of these can result in tax increases.

5. Do I have to allow the assessor into my home?

Even though Minnesota Statute 273.20 authorizes assessors to enter dwellings to conduct their appraisals, the same law recognizes a property owner’s right to privacy. If you wish to deny an appraiser access, you must notify us either verbally or in writing. Statute directs that we then make our best estimate of the property’s market value by making assumptions concerning the property’s finish and condition. No appeal board may change a market value without an interior inspection.